Hydro Responds to Northwest Power Shortage -- Temporarily Reduces Production in Goldendale Plant to Help Avert Current and Future Power Shortages LOUISVILLE, Ky.--(BUSINESS WIRE)--Dec. 26, 2000--Norsk Hydro ASA, (NYSE: NHY - news) Norsk Hydro, the Norwegian oil and energy, light metals and plant nutrition group and Norway's largest public company, today announced that in response to the high power rates in the Northwest, Goldendale Aluminum Company's smelter in the state of Washington will temporarily reduce production. Production will be curtailed from approximately 105,000 metric tonnes of aluminum to approximately 27,000 metric tonnes. The plant will produce at this reduced rate for nine months. A previous curtailment of production took place in October when approximately 157,000 metric tonnes of aluminum were reduced to 105,000 metric tonnes. Hydro Aluminum Metal Products--North America (HAMP-NA) has had a tolling arrangement with Goldendale since 1987. During the course of the agreement, Hydro has invested US $55 million to upgrade and expand production of the smelter.

During the temporary reduction of Goldendale's production Hydro will honor all commitments to its customers by supplying the metal from Hydro's other global sources. HAMP-NA will continue to grow in the U.S. as described in their expansion strategy and goals.

By curtailing aluminum production and returning electrical power to BPA (the Bonneville Power Administration) a large amount of power will be freed up to help ease the current electric power crisis in the Pacific Northwest. The benefits of this reduction include:

Making power available to BPA at a below-market price, thus reducing costs for BPA and its utility customers; Paying the costs of continued employment, wages and benefits of the smelter's employees; Freeing up funds to ensure the long-term viability of Goldendale through investment in power generation capacity. Goldendale and Hydro have agreed to a financial transaction, whereas, Hydro will be compensated for its costs, investments, and metal.

``During this period we are dedicated to ensuring that our commitments to our customers are met, as well as, ensuring that any negative impact on Goldendale's employees is minimized,'' said Jim Walters, President of HAMP-NA. ``The widespread power shortage in the Northwest is impacting many businesses. Goldendale is no exception. We hope that by temporarily reducing production HAMP-NA can do its part to ease the shortage.''

Hydro Aluminum Metal Products signed its first tolling agreement with Goldendale Aluminum Company, on July 12, 1987. In 1996 the tolling contract, covering the sales of 160,000 tonnes of aluminum annually was renewed. In October 1998, the companies signed their third contract to extend their tolling agreement to the year 2012.

``The start of our production at Hydro's Henderson remelt comes at an opportune time,'' says Lars Narvestad, Senior Vice President, HAMP NA. ``Our $33 million investment in this remelt facility will help ease the reduced shortfall at Goldendale.''

HAMP is the leading supplier of billet worldwide and a leading supplier of aluminum cast house products in Europe. Its global aluminum activities extend to the entire material chain of aluminum, including the mining and refining of bauxite into alumina, the production of primary aluminum, semi-fabrication and fabrication of aluminum products and remelting and recycling.

Norsk Hydro is one of the world's leading energy and industrial companies. Founded in 1905, Hydro has a presence in more than 100 countries and approximately 40,000 employees. Its core businesses are oil and energy, light metals and agriculture. Hydro is one of 18 companies, world wide, that are included in the Dow Jones sustainability group index. Its worldwide headquarters are located in Oslo, Norway.

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-- Martin Thompson (mthom1927@aol.com), December 26, 2000