Hydro – set for further growth in Brazil

1. Hydro – set for further growth in Brazil Harald Martinsen BNCC & OCC, October 19th, 2007

2. Brazil – Norway trade Imports from Norway 350 MUSD Exports to Norway 580 MUSD Hydro in Brazil 34% in Alunorte Alumina purchase: 330 MUSD1 57% of Brazilian export to Norway 100% of Acro Extrusion plant in Itú 13% of Brazil’s extruded products Hydro’s history in Brazil 1974 MRN investment 1977 Office established 1997 Acquisition of Acro in Itú 1999 Acquisition of Alunorte 2000 Acquisition of Adubos Trevo (Now part of Yara) 2001 Remelter built at Acro 2000-08 Expansions of Alunorte 2006 Acquisition of Peregrino 2007 New alumina refinery (MoU with CVRD) Brazil and Hydro 1) Numbers from 2006

3. Hydro in Brazil – a “picture” from 2003 Head office Agri plants Aluminium plants

4. StatoilHydro – a strong combinationCompany effective as of 2007-10-01

5. Hydro with strong Brazilian focus

6. The Peregrino Field Development Project

7. Significant value creation NOK billion * 4 January 1999 close, nominal value ** 31 August 2007 close. Aluminium and Oil & Energy based on transaction equation adjusted for dividend payments

8. A resourceful aluminium company • 25 000 employees1) • Operations in more than 30 countries • Turnover • 2006: NOK 99 billion • First-half 2007: NOK 51 billion • EBIT • 2006: NOK 7.5 billion • First-half 2007: NOK 7.0 billion • Market capitalization NOK 100 billion2) • Ranked as 5th largest aluminium company Aluminium Metal Aluminium Products Energy 1) Excluding oil and gas, Polymers, Meridian, Automotive Castings and smaller divestments in process 2) Close 18 October 2007

9. The Bauxite belt

10. MRN (Mineracao Rio do Norte) • The world's largest bauxite company (~18 mill tpy) • Very high quality and profitability • Partnership with CVRD, Alcoa, Alcan, BHP Billiton and CBA • Hydro bought 5% in 1974 when the company was started.

11. Shareholders Alumina - Alunorte • World’s largest refinery • 4.3 million tonnes (100%) • Full scale (2009): ~6.5 million tonnes • 34% owned by Hydro • Located in north-east Brazil • Revenues ~USD 1.3 billion (100%) • 1 150 employees • 10 million tons bauxite (wet) • Strong safety performance • High environmental and corporate social responsibility standards

12. MoU for new alumina project in Brazil • MoU with the Brazilian mining group CVRD • Important step to further expand global primary aluminium and raw materials sourcing • Final alumina production 7.4 million tonnes per year • Four-stage development, each 1.85 tonnes • Investment estimate first stage USD 1.5 billion (100%) • Hydro share 20% • Production start-up scheduled first-half 2011 • Final build decision and construction start in 2008

13. Brazil is key in Hydro’s growth strategy Hydro’s equity alumina production 1 000 tonnes

14. Norway Cup Brazilian soccer teams participate in Norway Cup with the support of Hydro • 1500 teams from 40 countries participate in the • world’s largest soccer tournament. • Several of the teams are from Brazil, 2 are sponsored by Hydro. • Hydro and its partners take responsibility for positive • development in the communities in which we operate. • As part of this program boys are encouraged to attend school. • If they do, they are eligible for the soccer team going to the • Norway cup. • Every year since 2001 the team has participated in Norway Cup

15. Cautious investment policy… Almost 20 years in the country before heavy investments started. Main investments have focused on bauxite mining and alumina production: • Long term perspective • Revenues linked to USD (commodities) • Generating positive trade balance for Brazil (exports) • Vertical integration with geographical proximity Asset-light strategy (partial ownership)

16. Careful Partnership selection… We believe in partnership as often the best model • Far away from home.. • Cultural differences.. • Political aspects. Mix of international and local partners Local partners must be strong and serious All partners must have long term perspective Partners with comparative strength

17. Financial management… Recruit competent, local people Work closely with a small number of banks Heavy focus on Tax and Cash Currency Exposure and (natural) hedging Flexibility Make sure you have professional advisors

18. Management Management style & philosophy • Limited number of Ex-pats • Relatively large local authority…, • But close follow up through reporting • Focus on training local managers and send then abroad for exposure • Keep the operation “close” to head office through • Use of English as corporate language (isolation) • Frequent visits and team meetings

19. Some challenges…. Tax system • Very complex with almost 60 different taxes • Ex. Tax on all payments and money transfers • Tax heaven and tax hell… Legal framework • Business sometimes difficult crossing state boarders • Federal Republic (Big differences from state to state) • No consolidation between different legal units • Solution: work with good local employees and advisors. Other aspects • Bureaucracy • Working permits, visa, other documentation • Corruption • Crime situation

20. But Brazil is still more than anything else….

21. But Brazil is still more than anything else….The land of great opportunities….

22. Cautionary note in relation to certain forward-looking statements Certain statements contained in this announcement constitute “forward-looking information” within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. In order to utilize the “safe harbors” within these provisions, Hydro is providing the following cautionary statement. Certain statements included within this announcement contain (and oral communications made by or on behalf of Hydro may contain) forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management’s plans, objectives and strategies for Hydro, such as planned expansions, investments, drilling activity or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro’s markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, as well as (i) statements preceded by “expected”, “scheduled”, “targeted”, “planned”, “proposed”, “intended” or similar statements. Although Hydro believes that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause Hydro’s actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to, world economic growth and other economic indicators, including rates of inflation and industrial production, trends in Hydro’s key markets, and global oil and gas and aluminium supply and demand conditions. For a detailed description of factors that could cause Hydro’s results to differ materially from those expressed or implied by such statements, please refer to the risk factors specified under “Risk review – Risk factors” on page 134 of Hydro’s Annual Report 2006 (including Form 20-F) and subsequent filings on Form 6-K with the US Securities and Exchange Commission. No assurance can be given that such expectations will prove to have been correct. Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Use of non-GAAP financial measures/Cautionary note in relation to oil and gas reserves 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 (www.hydro.com). The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation material, such as expected recoverable resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, SEC File No. 1-9159, available from us at our Corporate Headquarter: Norsk Hydro, N-0240 Oslo, Norway. You can also obtain this form from the SEC by calling 1-800-SEC-0330.