Hydro reported to financial prosecution authority in connection with information astray

(July 4, 2007) Hydro has been reported to the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) for possible breach of the Securities Trading Act in connection with the handling of confidential information while preparing a draft report of fourth-quarter results for 2006.

Hydro has implemented several measures to improve compliance with internal rules since the document went astray in February this year.

The Financial Supervisory Authority of Norway (Kredittilsynet), which has filed the complaint, points to the physical layout of one part of Hydro’s office building in Oslo and the fact that dedicated printers were not used in the preparation of the draft quarterly report — both circumstances may have contributed to more people than necessary having the possibility to gain access to the document.

“We are disappointed that we still don’t know how the information went astray”, said Cecilie Ditlev-Simonsen, Hydro’s Chief Communication Officer. “We believe that Hydro has satisfactory rules for handling confidential information, but we have seen the need to improve compliance. We have also taken several steps to make it easier for our employees to adhere to the rules.”

The Financial Supervisory Authority received a report on May 4 this year from the law firm Advokatfirmaet Hjort DA, which had been engaged by Hydro to investigate possible causes for the draft quarterly report going astray. Hjort did not find the actual cause but pointed out that the number of people with possible access to the draft quarterly results, combined with insufficient compliance with rules for handling confidential information as well as the physical design of the company’s office premises, increased the risk of information going astray.