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October 18, 2006

Alcoa-SIE Cargo Conversions 757-200ASF Receives FAA STC

SIMI VALLEY, Calif.--(BUSINESS WIRE)--Alcoa Inc. (NYSE:AA) announced today Federal Aviation Administration (FAA) certification of its 757-200ASF freighter conversion program.

"Receiving the Supplemental Type Certificate (STC) for our 757-200 14+ design provides the platform for our launch product. This aircraft provides longer range and a larger payload than the B727 while delivering superior operating economics based around a simple design that retains more of the 757’s original structure. Going forward, ASCC will continue to focus on providing significant value to our customer base for any product or service we undertake,” said Gary Batey, president of Alcoa – SIE Cargo Conversion, the Alcoa business unit that has been working with Structural Integrity Engineering (SIE) to create what both companies believe will be a high-value opportunity for narrow-body freighters.

“The FAA approval creates a unique conversion opportunity for the 757-200 freighter to become a significant player in the cargo industry,” said Dr. Matthew Creager, president of Structural Integrity Engineering.

“Alcoa is very pleased that the ASCC 757 STC has been granted,” said Bill Christopher, Group President of Alcoa’s Engineered Products and Solutions Group. “Providing a value-added solution to a large and growing need within the air cargo industry is central to ASCC’s mission, and we believe that the 757 product meets this criteria. Through new and improved product offerings established around the 14+ approach, ASCC will continue to grow as a market leader in the future.”

“The air cargo market is expected to grow 6.1% per year over the next twenty years – a pace that far outstrips the airline passenger market. The vast majority of the additional capacity necessary to fulfill that demand will come from converted aircraft like the 757-200ASF as opposed to newly manufactured freighters,” Mr. Christopher added.

ASCC will deliver its first converted 757-200 freighter to Babcock and Brown Aircraft Management.

ASCC recently signed an agreement with American Airlines to perform the 757-200ASF conversions at the American Airlines maintenance base in Kansas City, Missouri.

Alcoa-SIE Cargo Conversions:

Formed in 2003 to provide innovative products and services to the air cargo industry, ASCC’s first product offering is the 14Plus 757-200 cargo conversion. ASCC’s 14Plus offers the greatest value in a narrow body freighter, as well as having unmatched capacity and support capability with through its partnership with American Airlines.