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March 1, 2007

Alcoa to Close Mt Vernon, KY Packaging Plant

PITTSBURGH--Alcoa (NYSE:AA) announced today that it will close its Reynolds Food Packaging plastics manufacturing plant in Mt Vernon, Kentucky by the middle of this year. The plant closing, which impacts 115 people, will align production systems in the company’s food-packaging business to better serve customer needs. This action is part of Alcoa’s overall restructuring and re-positioning of downstream operations in order to improve returns, announced in the fourth quarter of 2006.

“The decision to close the plant will not impact Reynolds position in the marketplace nor will it affect our ability to serve current customers with the complete line of DelPak and other Food Packaging products,” said Bill Coad, President of Reynolds Food Packaging.

The Mt Vernon, KY plant produces thermoformed and injection molded plastic trays and containers, primarily used in the bakery, deli and foodservice market segments.

“The decision to close this plant was very difficult,” said Ray Newton, Reynolds Food Packaging Director of Thermoforming Operations. “Despite the outstanding efforts of our workforce, the costs and demands of the market simply cannot support this facility. This action will better position Reynolds Food Packaging in the marketplace and allow for future growth.”

Production will continue through April until certain lines are transferred to other packaging facilities. A transition plan is being developed.

About Alcoa

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® foils and plastic wraps, Alcoa® wheels, and Baco® household wraps. Among its other businesses are closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 123,000 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