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July 31, 2006

Alcoa Secures Five-Year Power Supply for Intalco Smelter in Pacific Northwest

NEW YORK--(BUSINESS WIRE)--July 31, 2006--Alcoa (NYSE:AA) announced today that it has secured power in the open market to operate one potline at its Intalco Works aluminum smelter in Ferndale, Wash., with the intention of operating the plant for five years by using benefits provided in a recent agreement with Bonneville Power Administration (BPA).

"This agreement has helped us build a bridge until 2011 when we hope to be able to once again purchase cost-based BPA power like other key industries in the Pacific Northwest," said Alan Cransberg, President, Global Manufacturing, Alcoa Primary Products. "A coalition of employees, local and state government officials, community leaders and the BPA has worked together to be part of this solution that will enable Intalco Works to continue operating past October 2006."

The BPA agreement signed in June provides aluminum companies in the Pacific Northwest with financial benefits to help reduce the cost of open market power purchases made after the current BPA contract expires in October. Alcoa has since been able to secure enough power to continue operating Intalco Works at 90,000 metric tons per year (mtpy), which is a third of its capacity.

"A number of our key stakeholders have come together to help support the 450 family-wage jobs at this smelter," said Mike Rousseau, Alcoa Intalco Works plant manager. "The total economic impact of Alcoa's operations in Washington amounted to $210 million in 2005, and we'll be able to continue to positively contribute to the state's economy because numerous people in our community and region have worked together on this issue."

Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, 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 closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 129,000 employees in 44 countries and has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at