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August 8, 2006

AFL Automotive to Restructure Mexican Operations

PITTSBURGH--(BUSINESS WIRE)--Aug. 8, 2006--Alcoa (NYSE:AA) today announced that its AFL Automotive business will reorganize its operations in Mexico. This adjustment is necessary to maintain competitiveness as a consequence of overall market conditions, including customer demand. The restructuring will happen in August of this year, resulting in the permanent total reduction of approximately 570 positions. Facilities impacted will be AFL Automotive operations in Acuna, Monterrey, Piedras Negras, Puebla and Torreon.



AFL Automotive in Mexico employs approximately 19,000 associates and produces and distributes electrical distribution systems and other products for the North American light and heavy vehicle markets.

Jon A. Jensen, - AFL EDS Americas President, said, "This difficult decision is the result of the competitive conditions of the global market, and the actions in Mexico are necessary to adjust AFL capacity to better match demand."

AFL Automotive recognizes the impact that this workforce reduction will have on the lives of its employees, their families, and the community at large. Full severance, in addition to a combination of outplacement and transition support services, will be made available to all affected employees.

Costs associated with the restructuring will be included in the company's 2006 third quarter results.

AFL Automotive is a world leader in the design, development and production of high quality electrical and electronic distribution systems for personal and commercial vehicles, working with vehicle manufacturers and their sub-suppliers in the major automotive centers in China, Japan, Asia, Europe and the United States. AFL Automotive has more than 60 locations in 11 countries and 35,000 associates around the world focused on its customers.

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 www.alcoa.com

Note to Editors: There should be a tilde over the "n" in "Acuna."