Completion of UK joint venture between Terra Industries Inc. and Kemira GrowHow Oyj

Kemira GrowHow Oyj and Terra Industries Inc. are pleased to confirm
the formation of a joint venture company, GrowHow UK Limited,
combining their fertilizer and associated process chemicals
businesses in the United Kingdom and the Republic of Ireland.
Completion of the joint venture follows confirmation from the UK
Competition Commission that it has concluded its review and approved
the transaction.

The move is designed to secure a sustainable, long-term base for
manufacturing fertilizer and process chemicals in the UK. The
combined business will produce ammonium nitrate, which is the main
nitrogen fertilizer consumed in the UK as well as compound
fertilisers to service both the UK and Ireland markets.

Mike Bennett, President and CEO of Terra Industries Inc. said, "We
are pleased that the Competition Commission has concluded its review
and approved the formation of our joint venture.  It will enable us
to continue to provide high quality products and services to our
customers, and will significantly expand our opportunities. By
securing a long-term manufacturing base in the UK, we are investing
in the future."

Heikki Sirvio, CEO of Kemira GrowHow Oyj, said, "Our new joint
venture will position our combined UK fertiliser and process
chemicals operations to achieve long-term success by reducing
overheads and allowing us to optimise our product mix. We are pleased
that the Competition Commission has approved the joint venture and
would like to thank our customers and other stakeholders for their
support during the review."

GrowHow UK Limited will be owned 50/50 by Kemira GrowHow and Terra
and will include Kemira GrowHow's site at Ince, and Terra's sites on
Teesside and Severnside. The annual turnover of the operations
included in the joint venture exceeded 500 million euros in 2006.
Through the joint venture, Kemira GrowHow and Terra expect to create
significant cost and operational synergies to enhance their ability
to service and compete in increasingly challenging markets.

Kemira GrowHow UK Limited is the largest UK producer of compound
fertilizers and Terra Nitrogen (UK) Limited is the largest UK
producer of ammonium nitrate.

Lazard is acting as financial adviser to Terra. Lehman Brothers is
acting as financial adviser to Kemira GrowHow.

Kemira GrowHow Oyj
Heikki Sirviö

For additional information please contact:
In Helsinki: Kaj Friman, Kemira GrowHow: +358 50 62 626
In Sioux City: Joe Ewing, Terra: +1 712 277 7305
In London: Dominic Fry and Susanna Voyle, Tulchan Communications: +44
20 7353 4200
In New York: Matthew Sherman, Joele Frank, Wilkinson Brimmer Katcher:
+1 212 355 4449

Helsinki Stock Exchange

About Terra
Terra Industries Inc., with 2006 revenues of $1.8 billion, is a
leading international producer of nitrogen products.  It employs
approximately 1,200 people in North America and the UK and is listed
on the New York Stock Exchange.

About Kemira GrowHow
Kemira GrowHow Oyj is one of the leading producers of fertilizer and
feed phosphates in Europe. Kemira GrowHow develops and markets
fertilizers and integrated solutions for crop cultivation, animal
feed supplements and chemicals required in various industries. The
group has approximately 2,500 employees worldwide and in 2006 net
sales were 1.2 billion euros. Kemira GrowHow Oyj is listed on the
Helsinki Stock Exchange.

Forward-looking statements
This news release may contain forward-looking statements, which
involve inherent risks and uncertainties. Statements that are not
historical facts, including statements about Terra Industries Inc.'s
beliefs, plans or expectations, are forward-looking statements. These
statements are based on current plans, estimates and expectations.
Actual results may differ materially from those projected in such
forward-looking statements and therefore you should not place undue
reliance on them. A non exclusive list of the important factors that
could cause actual results to differ materially from those in such
forward looking statements is set forth in Terra Industries Inc.'s
most recent report on Form 10-K and Terra Industries Inc.'s other
documents on file with the Securities and Exchange Commission. Terra
Industries Inc. undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future developments or otherwise.