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January 19, 2000

Alcoa To Restart Primary Aluminum Production

PITTSBURGH--January 19, 2000-- Alcoa announced today that it will restart approximately 200,000 metric tons per year (mtpy) of its currently idled aluminum smelting capacity. Alcoa plans to bring this capacity into production over the course of the year and to have the full 200,000 mtpy in production by year end. Alcoa will have approximately 250,000 mtpy of aluminum smelting capacity that remains idle following this restart.

The capacity to be restarted is located at smelters that are currently in production in Australia and the United States. Due to the company's continuing implementation of the Alcoa Production System, Alcoa expects minimal, if any, increase in employment because of the capacity restart. The company noted that the alumina for the restarted capacity will be sourced by Alcoa World Alumina's supply network.

President and CEO Alain Belda said that "Alcoa is taking this action due to continued strong demand in the U.S. and in other parts of the world." He added that the company will continue to review market conditions under which additional idle capacity can be returned to production. According to Mr. Belda, "Alcoa's ability to produce primary aluminum profitably at lower costs is being significantly enhanced by the rapid deployment of our Alcoa Production System."