Borealis turnaround in a challenging year

Borealis today announced its fourth quarter and full year result for 2002. The result shows improved financial performance compared to 2001. Net profit for the Group of EUR 6 million compared to a net loss of EUR 41 million in 2001. Operating profit was EUR 85 million up from EUR 54 million in 2001, and return on capital employed (ROCE) increased from 2% to 3%.

2002 was again a difficult year for the polyolefins industry, characterised by excess capacity and depressed margins combined with high volatility in demand, raw material costs and sales prices. Against this background, Borealis produced a positive result and reduced it's reported net debt by EUR 297 million due to strong cash flow improvements.

The major operating profit improvements came from the nine-quarter transformation programme launched in October 2001. The programme focuses on creating and delivering value to our customers, as well as achieving and applying internal efficiencies.

The cash flow improvements arose from strict working capital management, which combined with low capital expenditure reduced gearing from 102% at end of 2001 to 79%.

John Taylor, Chief Executive commented, “Although 2002 was a demanding year for the polyolefin industry, we are encouraged to see the efforts of our comprehensive transformation programme reversing 2001’s loss into a net profit for 2002”.

Additionally, in 2002 Borealis strengthened its presence in the Middle East and Asia through the Borouge joint venture with the Abu Dhabi National Oil Company (ADNOC), based on Borstar® polyethylene technology. Operations and sales exceeded expectations for the first year of activity.

“The current outlook for global economies is fragile and we anticipate that 2003 will be another volatile year. Borealis will continue to improve its financial performance by delivering on our transformation programme,” added John Taylor.

For further information please contact:

Press: Annette Risberg, Communications,

Tel. +45 45 96 61 85, email: annette.risberg@borealisgroup.com

Analysts: Tarmo Raudsepp, Finance

Tel. +32 475 72 90 72, email: tarmo.raudsepp@borealisgroup.com

Borealis will publish its 2002 Annual Report and 2002 Responsible Care Report during the month of March. Both reports will be available on our web site www.borealisgroup.com. To order hard copies, please contact Nina Bruun by e-mail at nina.bruun@borealisgroup.com or by telefax at +45 45 96 61 89.

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