Modernization of Rafnes Chlorine Plant OSLO, Norway, Feb. 4 /PRNewswire-FirstCall/ -- Hydro Polymers, the petrochemical sector of Hydro, is planning a NOK 700 million (EUR 85 million) conversion of its existing diaphragm chlorine plant at Rafnes, Norway, to membrane technology. The German company Uhde GmbH will have responsibility for the major part of the conversion work, which will start immediately and should be completed during the second half of 2006. When complete the plant will be identical to the new chlorine production facility already under construction at Rafnes, which will also utilize the latest generation membrane electrolysers and is scheduled to come on stream later in 2005. Together these two projects will increase Hydro Polymers' production capacity significantly, doubling output to 260,000 tonnes of chlorine and 280,000 tonnes of caustic soda. Anders Hermansson, president of Hydro Polymers, said: "This investment will secure Hydro Polymers' position as a sustainable low cost producer of chlorine and caustic soda and will strengthen the Rafnes plant's strong competitive position in VCM production. The driving force behind the conversion to best available membrane technology is environmental legislation, but in making the conversion there will be significant product and operating benefits." Membrane technology is more energy efficient and will lead to reduced CO2 emissions, cutting operating costs at the plant. In addition, the caustic produced by the plant will be salt-free, producing a higher quality product for customers. 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, 2003 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission. With respect to each non- GAAP financial measure Hydro uses in connection with its financial reporting and other public communications, Hydro provides a presentation of what Hydro believes to be the most directly comparable GAAP financial measure and a reconciliation between the non-GAAP and GAAP measures. This information can be found in Hydro's earnings press releases, quarterly reports and other written communications, all of which have been posted to Hydro's website (http://www.hydro.com/). Contact Kristin Brobakke Telephone (+47) 22 53 27 44 Cellular (+47) 91 84 06 81 E-mail DATASOURCE: Norsk Hydro CONTACT: Kristin Brobakke, +47-22-53-27-44, or Cell: +47-91-84-06-81, or Web site: http://www.hydro.com/

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