Hydro to divest its oleochemicals activities to OLEON NV

Norsk Hydro, the Norwegian oil and energy, light metals and agri group, has signed an agreement with OLEON NV that OLEON will acquire Hydro's wholly owned subsidiary Hydro Oleochemicals AS (HOC). HOC is the most important producer of oleochemicals in Scandinavia and one of the biggest European producers of special esters for cosmetics. The divestment fits with Hydro's strategy to focus on core activities within its business areas, and is part of the still ongoing Agri Turnaround process. The turnaround has more than achieved its goals, and the divestment of Hydro Oleochemicals is one of the last remaining elements before project completion at the end of 2001.

HOC is located in Sandefjord, Norway and has a production capacity of approximately 40.000 tonnes per year of fatty acids and their derivatives. The company has110 employees.

OLEON, the former oleochemicals division of Atofina/TotalFinaElf, has specialised in converting natural fats and oils into a wide range of oleochemical products that are combining high performance with particular environment friendliness. The company is established in Ertvelde, has two factory sites in Flanders, a sales office in Diegem and six foreign branches. The group is one of the main players in its industry and is aiming for further growth. The acquisition of HOC is part of this strategy.

The agreement will now be submitted to the competent public authorities for approval. The actual transfer of activities is foreseen to take place at the end of the year.

Certain statements in this press release are or may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not in the nature of historical facts may be deemed to be forward-looking statements and may contain identifying words such as "believes", "anticipates", "plans", "expects" and similar expressions. These forward looking statements are based on Hydro's current expectations, assumptions, estimates and projections about the company and the industries in which it engages in business. All forward-looking statements involve risks and uncertainties. For a detailed description of factors that could cause Hydro's actual results to differ materially from those expressed in or implied by such statements, please refer to its annual report on Form 20-F for the year-ended December 31, 2000 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission.