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Borealis 28/12/2006

OMV and IPIC plan to consolidate their chemistry activities into subsidiary Borealis

• OMV and IPIC intend to incorporate their respective 50% shares of AMI Agrolinz Melamine International into their joint subsidiary Borealis within the first half of 2007

• Changes in the AMI Supervisory Board as of January 1, 2007

• OMV continues to focus on core business

OMV, Central Europe's leading oil and gas group, continues to focus on its core business: Exploration & Production, Refineries & Marketing and Gas. In this context OMV, together with its core shareholder International Petroleum Investment Company (IPIC), is planning on incorporating AMI Agrolinz Melamine International GmbH (AMI), one of the leading international producers of melamine and plant nutrients into Borealis. OMV and IPIC each hold 50% of AMI. The final decision will be made in the course of the first half of 2007. Borealis, a leading provider of innovative, value creating plastics solutions, is headquartered in Vienna, Austria and is Europe's second largest producer of polyolefins. AMI's headquarters will remain in Linz (Upper Austria) and, as a holding company, Borealis will provide full support for the company’s further international expansion. Gerhard Roiss, OMV Deputy Chairman and Borealis Supervisory Board Chairman, commented: "The integration of AMI's expansion strategy into Borealis will be a good solution for Borealis and AMI, whose businesses complement each other.