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February 5, 2007

Re-Energized Potline Produces Employment and Stability at Alcoa Ferndale Operations

FERNDALE, Wash.--Alcoa Intalco Works aluminum smelter today produced the first molten metal from a re-energized potline that will increase production at the Ferndale operation by 7,500 metric tons per month.

The second potline was re-energized yesterday, only four months after the project was announced in September 2006. When the re-start is complete, the smelter will be operating at two-thirds capacity, producing approximately 180,000 metric tons of aluminum per year.

Plant manager Mike Rousseau said the potline re-start was an important milestone for the facility’s employees, their families and the local community.

“This plant has had a turbulent history but the re-start offers us all stability and a platform for a secure future.

“I congratulate everyone involved for their support and contribution to bringing this project to fruition,” he said.

More than 140 people have been employed at the smelter since the announcement, bringing the total number of Alcoa personnel to approximately 575. Approximately 200 contractors are also currently employed on site.

“Integrating so many new employees can be a challenge, but I am pleased to say that we have done it safely and ahead of schedule. We are providing an estimated 360 hours of safety and skills training for each new employee and that’s just the beginning of our long-term training investment,” Mr Rousseau said.

The smelter has not operated two potlines since April 2003. The re-start was made possible due to favorable market conditions, as well as benefits from the Bonneville Power Administration (BPA) and the State of Washington, and a revised labor contract, secured in 2006.

The five-year BPA agreement, along with favorable market conditions, enables the viable purchase of power to run the facility from the open market until 2011. Alcoa views this agreement as a bridge to a longer-term power contract in 2011. It is investing in facilities and employees for this re-start on the assumption that an economical longer-term contract will be offered by BPA following its formal record of decision later this year.

Alcoa (NYSE:AA) 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 124,000 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

Photographs will be available.