May 24, 2004

Airbus, Alcoa Salute Increased Jobs from the Assembly of the Airbus A380; Alcoa Adds 250 New Jobs to Meet Demand

TORRANCE, Calif.--(BUSINESS WIRE)--May 24, 2004--Airbus and Alcoa officials joined together today at Alcoa Fastening Systems headquarters in Torrance, CA, to acknowledge the contributions Airbus is making to America's aerospace industry and increased employment levels, and to recognize the new products that Alcoa is supplying to enhance the joining and assembly of the A380, Airbus' new airliner and the world's largest commercial aircraft.

"Airbus could not build the A380 without the significant support of American aerospace companies," Allan C. McArtor, Chairman of Airbus North America, told an audience of national and local officials and hundreds of Alcoa employees this morning. "While out-sourcing is an issue for so many today, Airbus is delighted to be among those companies who are 'in-sourcing' high-technology jobs. Fifty percent of the A380's components and subsystems will be made in the United States. We are especially pleased to include Alcoa Fastening Systems, a global leader in the design and manufacture of fastening systems, specialty fasteners, components and installation systems, as a vital link in our supply chain."

"Every new aircraft presents a series of unique technical challenges. For the A380, these challenges are amplified by the size and shape of this aircraft. Meeting them requires innovative fastening, fitting, joining and assembly products from Alcoa," according to Olivier Jarrault, Alcoa Fastening Systems (AFS) president. "By helping Airbus meet the demanding A380 range, operating and cost targets, these product solutions will also help Alcoa create 250 new AFS jobs in Southern California."

"The A380 is going to be the flagship of the 21st century," McArtor told the crowd. "This craft will carry 550 people 8,000 miles. Our hope is that many of the A380's passengers will come to Southern California to visit their families and friends or to patronize the marvelous attractions that make this region one of the most attractive in the world. The A380 is going to create a lot of jobs, not only for the next generation of Alcoa employees, but for those in many other companies as well."

Alcoa Fastening Systems has five locations and more than 3,000 employees in the Los Angeles basin. These resources are part of a global Alcoa business that has more than 5,500 employees working at 26 locations in seven countries. AFS supplies fastening solutions for the A380 as well as for all other Airbus models.

In addition to Alcoa Fastening Systems, Alcoa's other aerospace businesses include: Alcoa Mill Products, Alcoa Engineered Products, Alcoa Wheel and Forged Products and Howmet Castings. These businesses supply Airbus and the balance of the aerospace industry with aluminum sheet and plate, extrusions, forgings, structural castings and super alloy turbine blades. Alcoa's aerospace revenues were approximately $2 billion in 2003 and reflect the company's expanded aerospace materials, product and technology portfolio.

Airbus spends more than $5 billion annually in the United States, which equates to around $15 million a day. In all, more than 100,000 jobs in the United States can be tied to Airbus.

Alcoa is the world's leading producer of primary aluminum, fabricated aluminum and alumina, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) foils and plastic wraps, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 120,000 employees in 41 countries and has been a member of the Dow Jones Industrial Average for 45 years and the Dow Jones Sustainability Indexes since 2001. More information can be found at www.alcoa.com