VAW acquisition completed

(March 15, 2002) Norsk Hydro has completed the acquisition of the German aluminium company, VAW aluminium AG. The closing in Düsseldorf today comes just a little over two months after Hydro entered into the agreement with the German utility and industry group, E.ON, to acquire VAW.

Back row from left: Dr. Frank Possmeier and Judith Witte of E.ON, Karsten Winter of Hydro and dr. Patrick Wolff of E.ON. Front row: Dr. Rolf Pohlig of E.ON and Knut F. Preus of Hydro Aluminium.

The completion of the transaction is to be followed by a rapid integration of Hydro and VAW, which will create Hydro Aluminium into an innovative global force in the aluminium industry.

"VAW and Hydro represent an excellent strategic fit. The combination of our strengths in rolled products and extrusions enable us to offer customers a broader product range and move closer to aluminium end users. We will also be able to increase our recycling activities. The combination opens significant value creation opportunities," stated Jon-Harald Nilsen, chief executive officer of Hydro Aluminium and executive vice president in the Norsk Hydro group.

Hydro Aluminium will be one of the top three global aluminium suppliers, and market leader in important market segments. Hydro Aluminium will have a total business volume within primary aluminium cast house products of approximately 2.8 million tons. The combined group will have strong positions in markets for rolled and extruded products, and will be a global leader in aluminium applications for the building and automotive industries.

Hydro will be the leading aluminium company in Europe and have significant positions in North America and Asia/Pacific.

Integration planning in advance of the closing has prepared the ground for a rapid integration. Top management in Hydro Aluminium has been identified. Business sector managements will be appointed during April and the combined company will be fully operational - as one entity - from July 2002.

The acquisition will be funded by drawing on existing cash funds, according to a press release from Norsk Hydro. VAW aluminium AG will be consolidated into Hydro's accounts as of the closing date.