Key Highlights

* Revenue increased 22% and EBITDA improved 73% in the first quarter 2008 compared to the first quarter 2007 * Advanced Materials division experienced robust revenue and EBITDA growth during the quarter, led primarily by improved pricing for ferrovanadium * Engineering Systems division continued its strong revenue and EBITDA growth trend as demand for solar and remelting furnaces continued at a fervent pace * Timminco's revenue and EBITDA benefitted from sales of solar silicon as its new plant commenced production and began its ramp up phase according to schedule * EPS on a fully diluted basis increased 193% from the first quarter 2007 to $0.82 * AMG completed the previously announced acquisition of approximately 74% of Graphit Kropfmuehl AG in April 2008

Amsterdam, 9 May 2008 --- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") today announced its first quarter 2008 results. The Company's revenue increased to $326.1 million in the quarter ended 31 March 2008 from $266.8 million in the first quarter 2007, a 22.2% increase.

Net income attributable to shareholders for the first quarter 2008 was $22.5 million, or $0.82 per fully diluted share. This represents an increase of 204% compared to net income of $7.4 million or $0.28 per fully diluted share for the first quarter 2007. EBITDA rose 73.1% to $42.6 million in the first quarter 2008 compared with $24.6 million in the first quarter 2007.

In commenting on results, Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said: "I am pleased to report record earnings for the first quarter 2008. We had strong performances in both our Advanced Materials and Engineering Systems businesses. Both divisions delivered significant growth due to favorable conditions in the solar, steel, titanium and superalloy end markets. AMG's majority owned subsidiary, Timminco Limited, completed the commissioning of its 3,600 metric ton per annum upgraded metallurgical silicon facility in the first quarter and the ramp up of production is progressing in line with our expectations with output and shipments to our customers increasing each month."

Key Figures

In 000's US Dollar Q1'08 Q1'07 [1] Change Revenue $326,148 $266,829 22.2% Gross profit 67,210 45,103 49.0% Gross margin 20.6% 16.9% Operating income 35,408 20,591 72.0% Operating margin 10.9% 7.7% Net Income attributable to shareholders 22,509 7,398 204.3% EPS- Fully diluted 0.82 0.28 192.9% EBITDA [2] 42,633 24,623 73.1% Notes: [1] Q1 2007 revenue has been restated due to an adjustment at Timminco [2] EBITDA is defined as earnings before interest, tax, depreciation, and amortisation and excludes non-recurring items

Operational Review Advanced Materials Division Q1'08 Q1'07 Change Revenue $184,409 $169,347 8.9% Gross profit 33,466 24,775 35.1% Operating income 14,668 9,157 60.2% EBITDA 19,375 12,003 61.4% Capital expenditures 4,504 2,292 96.5%

The Advanced Materials division's first quarter 2008 revenue was driven by strong demand for the majority of its products, most notably in the steel, superalloy and titanium markets. Revenue increased by $15.1 million or 8.9%, while gross margins increased by $8.7 million or 35.1%. EBITDA increased by $7.4 million, a 61.4% improvement over the first quarter 2007 as a result of the increase in revenues and essentially flat SG&A and conversion expenses.

Almost all key products delivered improved gross margins on strong volumes, tight cost control, and higher unit pricing. Secure raw material supply drove much of the increase in revenue to the bottom line. The most notable pricing and revenue increases over first quarter 2007 were in ferrovanadium and chromium metal. Although ferrovanadium volume was essentially unchanged from the first quarter 2007, the average sales price increased over 60% as the result of increased global demand and reduced market discounts. The majority of the Company's ferrovanadium sales are made under annual contracts, priced monthly based upon a prior month's average price index. Chromium metal volumes and prices also increased substantially during the first quarter 2008 compared to the first quarter 2007, with volumes increasing by approximately 40% and sales prices increasing by over 30%. The tight global supply/demand balance continues to drive strong performance in both of these products.

Operating income for the first quarter 2008 improved 60.2% to $14.7 million, up from $9.2 million for the comparable period in 2007. This was primarily due to the increase in gross profit offset by a marginal increase in selling, general and administrative expenses that was attributable to a buildup in corporate infrastructure.

Capital expenditures increased to $4.5 million for the quarter ended 31 March 2008 due to the planned tantalum expansion and hydro-plant in Brazil.

During the quarter, the Advanced Materials division signed a new multi-year agreement with a major operator in the Alberta Oil Sands to process and recycle additional quantities of spent catalysts at the Ohio ferrovanadium recycling facility. The second phase of that facility expansion, which will increase capacity 24% to 5.6 million pounds of vanadium per annum, is scheduled to be completed in 2010. 2008 stated capacity is approximately 4.5 million pounds. The division also continued progress on high priority projects such as the expansion of capacity at the Brazilian tantalum mine and the associated hydropower project, and saw increased market acceptance of coating products for the thin film solar industry.

Engineering Systems Division Q1'08 Q1'07 Change Revenue $94,358 $61,170 54.3% Gross profit 29,253 18,425 58.8% Operating income 20,480 11,334 80.7% EBITDA 21,909 12,866 70.3% Capital expenditures 9,205 2,863 221.5%

The Engineering Systems division achieved another record quarter. Order-backlog was at $351 million on 31 March 2008, up 39.2% from $252 million on 31 December 2007 primarily based on the success of its solar and titanium furnace systems. First quarter 2008 revenue increased by $33.2 million or 54.3%, while EBITDA increased by $9.0 million or 70.3% over the same period in 2007.

For the third consecutive year, demand in almost all markets of the Engineering Systems division remains at record levels. Growth in solar silicon crystallization and melting furnaces, or directional solidification systems ("DSS"), for the solar market increased 40.1% in the first quarter 2008 from the same period in 2007. The division is meeting this increased demand through capacity expansion at its recently acquired Berlin facility. The Company produced three DSS furnaces per week at the end of the first quarter 2008 as compared to one per week during the fourth quarter 2007. The Berlin solar furnace production facility is working to increase its capacity to five furnaces per week by the fourth quarter 2008 in order to meet growing global demand. During the quarter, the Engineering Systems division continued to improve the efficiency of its solar furnaces, including optimising the use of upgraded metallurgical silicon at its solar silicon testing facility in Freiberg, Germany.

The Engineering Systems division also experienced a 45.0% increase in revenue from remelting systems primarily for the aerospace, electronics, and specialty steel industries. Geographically, the Asia Pacific region and Europe drove revenue growth. Almost all product lines achieved improved margins on increased volumes.

The division increased its EBITDA margin to 23.2% during the first quarter 2008 from 21.0% for the same period in 2007. This increase was driven by the sale of vacuum furnace systems based upon the division's proprietary technology and increased economies of scale. The division continues to focus on reducing lead times for key product lines in order to meet the demands of its expanding customer base while generating margins at levels achieved in 2007.

During the quarter ended 31 March 2008, capital expenditures increased to $9.2 million, from $2.9 million for the first quarter of 2007. The building and expansion of the Mexican Own and Operate facility is the primary driver of this growth in capital spending.

Timminco Q1'08 Q1'07 Change Revenue $47,381 $36,312 30.5% Gross profit 4,491 1,903 136.0% Operating income 260 100 160.0% EBITDA 1,349 (246) n.m. Capital expenditures 15.514 1.521 920.0%

Timminco's revenue for the first quarter 2008 was $47.4 million compared with $36.3 million in the first quarter 2007, an increase of 30.5%. The increase is primarily attributable to the growth in the sales of the Company's solar grade silicon and silicon metal products. Gross margin improved due to the increase in sales of higher margin solar grade silicon as compared to the silicon metal that was sold in the first quarter 2007.

Silicon gross profit for the first quarter 2008 was $3.2 million or 9.4% of sales compared to gross margin of $0.9 million or 4.8% of sales in the first quarter of 2007. Timminco sold 100 metric tons of solar grade silicon during the first quarter 2008, approximately triple what it had shipped in the fourth quarter of 2007, at an average price in excess of $60/kg. The main contributor to the increase in margin was the increase in sales of solar grade silicon. Included in cost of sales are $2.0 million of start-up costs incurred in the quarter relating to the commissioning of the solar grade silicon facility. Magnesium gross profit for the first quarter 2008 was $1.3 million or 9.4% of sales compared to $1.0 million or 6.0% of sales in the first quarter of 2007.

Timminco's operating income improved to $0.3 million in the first quarter of 2008 due to higher gross profit which was offset by increased selling, general and administrative expenses. The increase in SG&A was largely attributable to higher professional fees and travel related to various strategic initiatives.

The expansion of Timminco's 3,600 metric ton solar silicon facility has been completed according to budget and schedule and is currently in the ramp up phase. This accounts for the majority of the division's capital expenditures. Timminco is comfortable with current solar grade silicon production levels and continues to expect to achieve a cost in the range of $10 to $15 per kilogram at long-term nominal production levels. Continued growth in solar silicon revenues and gross margin improvement are expected for the balance of 2008.

Financial Review

Liquidity Q1'08 Q4'07 Change Total debt $175,767 $140,782 24.9% Cash & short-term Investments 208,391 187,891 10.9% Net cash 32,624 47,109 (30.7)%

AMG has a significant net cash position of $32.6 million as of 31 March 2008. The Company's liquidity position decreased modestly due to investments in working capital owing to higher volumes and pricing in a number of products and the $8.5 million cash payments and escrow for shares of Graphit Kropfmuehl AG, in advance of the completion of the share purchase.

Cash Flow Q1'08 Q1'07 Cash Flows from Operations $30,352 $42,703 Capital expenditures (29,223) (6,676) Acquisitions, net of cash (8,575) (1,547) Cash flows from other investing 4,744 1,709 Cash Flows used in Investing Activities (33,054) (6,514) Cash Flows generated from (used in) Financing 25,951 (3,764) Activities Effect of exchange rates on cash held 6,895 1,347 Net increase in cash and cash equivalents 30,144 33,772

The strong increase in net income was offset by higher investments in working capital during the quarter ended 31 March 2008 resulting in cash flows from operations totaling $30.4 million, down from $42.7 million in the first quarter 2007. The lower level of cash generation is primarily due to necessary working capital build in all areas of the business, which was expected as part of the expansion plans for the Advanced Materials division and Timminco, and a lower level of advanced payments at the Engineering Systems division.

Cash flows used in investing activities of $33.1 million for the quarter ended 31 March 2008 was significantly higher than in the first quarter 2007. This is primarily due to the $14.5 million in costs related to the expansion of the Timminco solar silicon production facility. Cash flows from financing activities were $26.0 million, an increase from cash used in finance activities of $3.8 million in the same period in 2007. This increase was a result of the $20.0 million drawdown on the credit facility in preparation for the acquisition of approximately 74% of Graphit Kropfmuehl in April 2008.

Interim consolidated income statements

For the three months ended 31 March In thousands of US Dollars 2008 2007 Unaudited Unaudited Continuing operations Revenue 326,148 266,829 Cost of sales 258,938 221,726 Gross profit 67,210 45,103 Selling, general and administrative expenses 32,969 25,638 Restructuring and asset impairment expenses 128 7 Environmental expense 84 120 Other expenses - 25 Other income (1,379) (1,278) Operating profit 35,408 20,591 Interest expense 3,968 9,017 Interest income (2,006) (966) Foreign exchange gain (loss) 1,336 (364) Net finance costs 3,298 8,415 Share of profit of associates 101 (130) Profit before income tax 32,211 12,046 Income tax expense 8,680 5,043 Profit for the period 23,531 7,003 Attributable to: Shareholders of the Company 22,509 7,398 Minority interests 1,022 (395) 23,531 7,003 Earnings per share Basic earnings per share 0.84 0.28 Diluted earnings per share 0.82 0.28

The notes are an integral part of these consolidated interim financial statements

Interim consolidated balance sheet at 31 March 2008 and 31 December 2007

In thousands of US Dollars March 31, December 31, 2008 2007 Unaudited Audited Property, plant and equipment 181,763 155,763 Intangible assets 51,018 50,291 Investments in associates 30,220 15,145 Derivative financial instruments 931 194 Deferred tax assets 39,940 34,537 Restricted cash 15,685 14,582 Notes receivable 4,292 7,068 Other assets 5,243 5,087 Total non-current assets 329,092 282,667 Inventories 218,631 186,410 Trade and other receivables 252,475 187,243 Derivative financial instruments 11,162 3,582 Prepayments 47,251 48,754 Short-term investments 5,689 15,333 Cash and cash equivalents 202,702 172,558 Total current assets 737,910 613,880 Total assets 1,067,002 896,547 Equity Issued capital 722 722 Share premium 376,370 392,304 Other reserves 6,812 (9,923) Retained earnings (deficit) (114,930) (137,439) Equity attributable to shareholders of the 268,974 245,664 Company Minority interests 63,671 64,133 Total equity 332,645 309,797 Liabilities Loans and borrowings 145,260 115,726 Employee benefits 108,065 102,809 Provisions 12,014 12,011 Government grants 6,968 8,585 Other liabilities 9,441 9,087 Derivative financial instruments 57 77 Deferred tax liabilities 41,131 32,112 Total non-current liabilities 322,936 280,407 Loans and borrowings 1,195 1,102 Short-term bank debt 22,545 16,202 Related party debt 6,767 7,752 Government grants 9,292 7,927 Other Liabilities 41,310 42,356 Trade and other payables 156,293 126,827 Derivative financial instruments 11,616 4,994 Advance payments 136,530 74,731 Current taxes payable 14,268 11,496 Provisions 11,605 12,956 Total current liabilities 411,421 306,343 Total liabilities 734,357 586,750 Total equity and liabilities 1,067,002 896,547

Interim consolidated cash flow statements

For the three months ended 31 March In thousands of US Dollars 2008 2007 Unaudited Unaudited Cash flows from operating activities Profit for the period 23,531 7,003 Adjustments to reconcile profit to net cash flows: Non-cash Depreciation and amortization 5,722 4,523 Restructuring expense and impairment losses 128 7 Environmental expense 84 68 Net finance costs 3,298 8,415 Share of (profit) loss of associates (101) 130 Equity-settled share-based payment 2,627 - transactions Income tax expense 8,680 5,043 Change in working capital (4,771) 25,587 Other (4,635) (1,458) Interest received/(paid) 566 (1,042) Income tax paid (4,691) (1,951) Cash paid for dividends (86) (3,622) Net cash flows from operating activities 30,352 42,703

Cash flows used in investing activities

Proceeds from sale of property, plant and equipment - 701 Acquisitions of property, plant and equipment and (29,223) (6,676) intangibles Acquisitions, net of cash (8,575) (1,547) Related party loans (3,315) - Change in short-term investments 9,274 - Other (1,215) 1,008 Net cash flows used in investing activities (33,054) (6,514) Cash flows from financing activities Proceeds from issuance of debt 26,131 127 Repayment of borrowings (261) (3,502) Capital infusion 11 67 Other 70 (456) Net cash flows used in (from) financing activities 25,951 (3,764) Net increase in cash and cash equivalents 23,249 32,425 Cash and cash equivalents at 1 January 172,558 54,610 Effect of exchange rate fluctuations on cash held 6,895 1,347 Cash and cash equivalents at 31 March 202,702 88,382

About AMG

AMG, incorporated in the Netherlands, is a global leader in the production of highly engineered specialty metal products and advanced vacuum furnace systems. AMG serves growing industries worldwide with its unique combination of metallurgical engineering expertise and production know-how. AMG is a market leader in many of its products and systems, which are critical to the production of key components for the aerospace, energy (including solar and nuclear), electronics, optics, chemicals, construction and transportation industries. AMG has two operating divisions of businesses, Advanced Materials and Engineering Systems, and owns a majority interest in publicly-listed Timminco Limited (TSX: "TIM").

The Advanced Materials Division develops and produces niche specialty metals and complex metals products, many of which are used in demanding, safety-critical, high-stress environments. AMG is one of a limited number of significant producers globally of niche specialty metals, such as ferrovanadium, ferronickel-molybdenum, aluminum master alloys and additives, chromium metal and ferrotitanium, used by steel, aluminum, chemical and superalloy producers for aerospace, automotive, energy, electronics, optics, chemicals, construction and other applications. Other key products produced by AMG include specialty alloys for titanium and superalloys, coating materials, tantalum and niobium oxides, vanadium chemicals and antimony trioxide.

The Engineering Systems Division designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities. AMG is a global leader in supplying technologically-advanced vacuum furnace systems to customers in the aerospace, energy (including solar and nuclear), transportation, electronics, superalloys and specialty steel industries. Examples of furnace systems produced by AMG include vacuum remelting, solar silicon melting and crystallization, vacuum induction melting, vacuum heat treatment and high pressure gas quenching, vacuum precision casting, turbine blade coating and sintering. AMG also provides vacuum case-hardening heat treatment services on a tolling basis to customers through facilities equipped with vacuum heat treatment furnaces.

Timminco Limited is a majority controlled, publicly-listed subsidiary of AMG. Timminco is a leader in the production of upgraded metallurgical silicon for the rapidly growing solar photovoltaic energy industry. Timminco also produces silicon metal and magnesium products for use in a broad range of industrial applications.

AMG operates globally with production facilities in Germany, the United Kingdom, France, the United States, Canada, Mexico, Brazil and Australia and also has sales and customer service offices in Belgium, Russia, China and Japan (website: www.amg-nv.com ).

For further information please contact: AMG Advanced Metallurgical Group N.V. +1 610 975 4901 Jonathan Costello Director of Corporate Communications jcostello@amg-nv.com

Disclaimer

Certain statements in this press release are not historical facts and are "forward looking". Forward looking statements include statements concerning AMG's plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG's competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG's business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words "expects," "believes," "anticipates," "plans," "may," "will," "should," and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. These forward looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG's expectations with regard thereto or any change in events, conditions or circumstances on which any forward looking statement is based.

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