ADDITIONAL INFORMATION ON CASH MERGER AGREEMENT WITH TERRA

 Not for distribution into the United States
 
Oslo  (2010-02-17):  Reference  is  made  to  the  stock exchange notice by Yara
International  ASA ("Yara") on 15 February 2010 regarding  the signing of a cash
merger  agreement with Terra Industries Inc.  ("Terra"). In accordance with Oslo
Børs   Continuing   Obligations   Article  3.4, certain  additional  information
regarding the contemplated transaction is set out below.
 
The Transaction and its Rationale
 
As  set out in the  stock exchange notice of  15 February 2010 Yara has signed a
cash  merger agreement with Terra pursuant to which Yara will acquire all of the
outstanding  shares of Terra common  stock for USD 41.10 per  share in cash. The
contemplated  transaction has  a total  equity value  of approximately  USD 4.1
billion.  Yara intends to fund a portion  of the transaction through the planned
USD  2.0‐2.5 billion rights  issue. Yara  has not  yet committed  to any project
specific  debt  financing.  The  rights  issue,  which is supported by an equity
bridge  and which is fully underwritten,  excluding the Norwegian State's share,
will  secure  a  strong  position  for  further  funding. Additionally, Yara has
undrawn committed loan agreements of USD 1.5 billion in place and expects a cash
receipt  of approximately USD  620 million from the  sale of Fosfertil shares in
the second quarter of 2010.
 
Yara  is committed to the US market, and this transaction presents an attractive
opportunity for both companies to strengthen their positions in the US. Yara and
Terra are a perfect fit, and the combination will elevate Yara to a truly global
leader  in the industry. Both companies are  strong in ammonia and nitrates, and
have   complementary  geographical  footprints.  Terra's  ammonia  and  upgraded
fertilizer  distribution systems in  the US will  be combined with Yara's global
sourcing  and  optimization  capabilities  as  the  world's largest producer and
trader of fertilizer and ammonia.
 
The  merger agreement is signed on the basis of Yara's proven M&A value creating
track  record, a positive fertilizer market outlook and the improved competitive
edge of US nitrogen producers. The structural changes over the last years in the
global  and U.S. gas market with ample  LNG and shale gas have strongly improved
the  cost position of  U.S. producers. North  American producers are in addition
benefiting  from logistical  advantages as  the US  will continue  to need large
imports  of nitrogen, and the high construction  costs for new plants now favors
existing production capacity.
 
Yara has identified yearly cost synergies with pre-tax effects of USD 60 million
to be harvested within a year after closing. In addition, Yara is targeting soft
synergies of the same magnitude, including improved utilization and optimization
of logistical systems.
 
Neither  Yara  nor  Terra  have  entered  into,  or  expects  to enter into, any
agreements in connection with the merger for the benefit of its senior employees
or members of the board of directors.
 
Terra Industries Inc.
 
Terra is a leading international producer of nitrogen products for agricultural,
industrial and environmental markets. Terra owns and operates six North American
nitrogen  products  manufacturing  facilities  and  owns a 50% interest in joint
ventures  in the United Kingdom  and The Republic of  Trinidad and Tobago. Terra
headquarters  is in Sioux City, Iowa. Terra provides products that are essential
to  meeting the needs  of a growing  global population. Terra's nitrogen product
line  includes ammonia, urea ammonium  nitrate solutions (UAN), ammonium nitrate
(AN)  and urea. With  the capacity to  produce approximately 6.5 million tons of
product  at  its  North  American  facilities  annually,  Terra  is  an imporant
contributor to the markets it serves. Terra employs approximately 938 people and
is listed on the New York Stock Exchange with ticker symbol TRA.
 
The  Board  of  Directors  of  Terra  consists  of: Henry Slack (Chairman of the
Board),  Michael Bennett, David Fisher, Martha  Hesse, Dod Fraser, Peter Janson,
James Kroner, Dennis McGlone, John Lilly, David Wilson and Irving Yoskowitz.
 
The  senior management of  Terra consists of:  Michael Bennett (President, Chief
Executive  Officer  and  Director),  Daniel  Greenwell (Chief Financial Officer,
Senior  Vice  President),  Douglas  Stone  (Senior  Vice  President,  Sales  and
Marketing),  Joseph Giesler (Senior Vice President, Commercial Operations), John
Huey (Vice President, General Counsel, Corporate Secretary), Edward Dillon (Vice
President,  Controller) Joe  Ewing (Vice  President,Investor Relations and Human
Resources),  Richard  Sanders  (Vice  President, Manufacturing), Geoffrey Obeney
(Vice  President,  Information  Technology)  and  Earl  Smith  (Vice  President,
Business Development).
 
Below  is a summary of key figures from  the profit and loss account and balance
sheet of Terra:
 
Income Statement

                         -------------------------------------------------------
  In                USDmm     2006    2007    2008     9M08  9M09            LTM
--------------------------------------------------------------------------------
 
  Product        Revenues    1,816   2,336   2,880    2,198 1,216          1,898
 
  Other            Income        4       7      11       10     4              5

                         -------------------------------------------------------
  Total           Revenue    1,820   2,343   2,891    2,208 1,220          1,904
 
Cost      of      Sales  (1,701) (1,815) (2,028)  (1,532) (921)        (1,417)
 
  SG&A                        (68)    (92)    (71)     (58)  (50)           (62)
 
                             Other                                     Operating
  Expenses((1))                  -       -       -        -  (14)           (14)
 
               Equity                in                Earnings               of
                             North                                      American
                                                                  Unconsolidated
  Affiliates((2))               17      16      56       46    11             21

                         -------------------------------------------------------
  Income  from Operations       67     452     849      663   246            432
 
Interest         Income        6      17      23       19     4              8
 
  Interest        Expense     (48)    (29)    (27)     (21)  (20)           (27)
 
                    Loss                         on                        Early
  Retirement    of   Debt        -    (39)       -        -     -              -

                         -------------------------------------------------------
  Income   before  Income       26     401     845      662   229            412
      Taxes,       Non-Controlling
                                                                        Interest
               and                Equity               Earnings               of
                             GrowHow                                          UK
 
Income   Tax  Provision     (10)   (127)   (240)    (230)  (56)           (66)
 
                                                                 Non-Controlling
  Interest                    (11)    (50)    (68)     (52)  (20)           (36)
 
                    Equity                       Earnings                     of
                                                                  Unconsolidated
                             Affiliates((2))                                   -
  GrowHow              UK        -     (3)      96       89     2              9

                         -------------------------------------------------------
                    Net                    Income                   Attributable
               to                Terra                Industries               -
  Continuing                     5     221     633      469   156            320
 
Income/(Loss)                                  from
                             Discontinued                             Operations
  -   Net   of   Tax((3))      (1)    (19)       8        8     1              1

                         -------------------------------------------------------
                    Net                    Income                   Attributable
  to   Terra   Industries        4     202     641      476   156            321
 
Source:                    Company                   filings
 
  (1) Other operating expenses of $14.3 million represents costs associated with
  the          unsolicited          exchange         offer         by         CF
 
  (2)  Investments accounted for on the  equity method of accounting consist of:
  (i)  50% ownership interest in Point Lisas  Nitrogen Limited (PLNL), (ii) 50%
  interest          in          an         ammonia         storage         joint
  venture located in Houston, Texas and (iii) 50% interest in a joint venture in
  Oklahoma        CO2,        located        in        Verdigris,       Oklahoma
 
  (3) On December 31, 2008, Terra sold its Beaumont, Texas assets, including the
  methanol  and  ammonia  production  facilities,  to  Eastman  Chemical Company
                                                                       (Eastman)
 
Balance Sheet
                                                --------------------------------
  In                                       USDmm   2006  2007  2008   3Q08  3Q09
--------------------------------------------------------------------------------
 
  Cash         &         Cash        Equivalents    179   698   967    681 1,001
 
  Accounts                           Receivables    199   171   130    236   104
 
  Inventories                                       211   129   197    176   111
 
  Other              Current              Assets     32    29    98    194    69
 
  Current   Assets  of  Discontinued  Operations      -     2     -     46     -
                                                --------------------------------
  Total              Current              Assets    621 1,030 1,392  1,332 1,285
 
Property,     Plant    &    Equipment    (Net)    721   390   403    407   435
 
  Equity            Method           Investments    164   352   271    383   253
 
  Other         Non        Current        Assets     67    74    46     61    58
 
  Non  Current Assets of Discontinued Operations      -    43     -      -     -
                                                --------------------------------
  Total            Non-Current            Assets    952   858   721    851   747
 
                                                --------------------------------
  Total                                   Assets  1,573 1,888 2,113  2,183 2,031
 
Accounts                               Payable    156   111   100    124    71
 
  Customer                           Prepayments     77   299   112    195    41
 
  Other            Current           Liabilities     76   103   254    332    65
 
  Current Liabilities of Discontinued Operations      -     5     -      3     -
                                                --------------------------------
  Total            Current           Liabilities    309   518   465    654   176
 
Long                 Term                 Debt    331   330   330    330   330
 
  Other          Non-Current         Liabilities    238   194   149     63   172
 
          Non-Current            Liabilities           of           Discontinued
  Operations                                          -     1     -     79
                                                --------------------------------
  Total          Non-Current         Liabilities    570   525   479    472   502
 
--------------------------------
  Total                              Liabilities    879 1,042   944  1,126   679
 
Preferred                               Shares    116   116     2      2     0
 
Total           Stockholder's           Equity    483   620 1,059    959 1,257
 
  Non            Controlling            Interest     95   110   108     96    96
                                                --------------------------------
  Total                                   Equity    578   730 1,167  1,055 1,352
 
                                                --------------------------------
  Total  Liabilities  and  Stockholder's  Equity  1,573 1,888 2,113  2,183 2,031
 
Source:          Company         filings.        2006 Figures        not
  restated                                            -     -     -      -     -
 
Additional financial information
 
Significant subsequent events of Terra to the key figures above include:
 
  * 29 October 2009: Terra announced that its Board of Directors had declared
    the previously announced special cash dividend of USD 7.50 per share
    (payment date: 11 December 2009). Through the special cash dividend, Terra
    returned an aggregate of approximately USD 750 million to shareholders
  * 27 October 2009: Terra Capital, a wholly-owned subsidiary of Terra,
    announced the completion of its cash tender offer for its outstanding USD
    330 million 7.00% Senior Notes due 2017. As of the expiration date, Terra
    Capital had received tenders from holders of approximately USD 317.5 million
    aggregate principal amount. Terra Capital funded the purchase of these notes
    with the proceeds of its completed sale of 7.75% Senior Notes due 2019
  * 26 October 2009: Terra Capital, a wholly-owned subsidiary of Terra,
    announced the closing of its private offering of USD 600 million aggregate
    principal amount of Senior Notes due 2019. The notes bear an interest rate
    of 7.75% per annun and were issued at a price equal to 98.298% of their face
    value.
 
Advisors
 
Citigroup  is serving as Yara's financial advisor,  and Latham & Watkins LLP and
Wikborg,  Rein & Co are serving as legal advisors to Yara in connection with the
Merger.
 
Citigroup, Deutsche Bank AG and Nordea Bank Norge ASA will act as lead managers
and joint bookrunners to Yara in connection with the rights issue, while Latham
& Watkins LLP and Wikborg Rein & Co will serve as legal advisors to Yara in
connection with the rights issue..
 
Contact
 
Torgeir Kvidal, Investor Relations
Telephone  (+47) 24 15 72 95
Cellular (+47) 91 33 98 32
E-mail torgeir.kvidal@yara.com 
 
Asle Skredderberget, Media Relations
Cellular (+47) 41 44 36 10
E-mail asle.skredderberget@yara.com 
 
Yara International ASA is the world's leading chemical company that converts
energy, natural minerals and nitrogen from the air into essential products for
farmers and industrial customers. As the number one global supplier of mineral
fertilizers, we help provide food for a growing world population. Our industrial
product portfolio includes environmental protection agents that prevent air
pollution. Yara's global workforce of 8000 employees represents the great
diversity and knowledge that enables Yara to remain a leading performer in the
industry.
www.yara.com <http://www.yara.com/>
 
This announcement is not an offer of securities for sale in the United States.
Securities offered pursuant to the transaction referred to in the announcement
may not be offered in the United States absent registration or an exemption from
such registration.  Any offering of securities for sale in the United States
will be made only by means of an offering circular that will contain detailed
information regarding Yara and such securities as well as the financial
statements of Yara.  Such offering circular will be provided only to
shareholders and others in compliance with the relevant exemptions from
registration.
 
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
 
[HUG#1385179]