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May 2, 2007

Alcoa Announces Expansions in Aerospace Propulsion, Fastening and Aluminum Manufacturing Facilities

NEW YORK--Alcoa (NYSE:AA) announced the completion of multiple global manufacturing expansions during an Alcoa Aerospace industry briefing where company executives outlined aerospace growth prospects, market dynamics, technology breakthroughs and Alcoa’s actions enabling it to grow faster than the market. The expansions reflect the company's strong outlook for the aerospace sector in power and propulsion, fastening systems and structural metallics.

Expansions in aluminum manufacturing capacity were completed at Alcoa mills in four countries, reinforcing the company's leading position in aerospace structural metallics and solutions. New capabilities in the company's heat-treated sheet and plate capacity were announced in Davenport, Iowa, USA; Kitts Green, UK; Fusina, Italy; and Belaya Kalitva, Russia. These additions represent a 50% expansion in these critical aerospace product forms.

Expansion of Alcoa's Power and Propulsion Systems' global manufacturing capabilities have included a new airfoil post-cast operation in Szekesfehervar, Hungary, an expansion of airfoil post-cast operations in Acuna, Mexico, expansion of turbine airfoil casting capacity in Whitehall, Mich., and additional turbine airfoil core capacity in Morristown, Tenn. The company also told aerospace analysts and journalists that it plans to bring on line five additional single-crystal casting furnaces in the next two quarters.

Alcoa Fastening Systems has expanded its global aerospace fastener manufacturing capacity and capabilities with the opening of new facilities in Suzhou, China and Acuna, Mexico; and through the addition of new manufacturing capacity and capabilities in Nemesvamos, Hungary. These investments will result in a 12% increase in the manufacturing capacity of specialty fasteners for both airframe and engine applications by the end of 2009.

Productivity gains at all Alcoa aerospace locations have been realized via the Alcoa Business System (ABS), including an intensive effort of Total Production Maintenance (TPM). TPM involves employees at all levels of the organization working together to improve the operational availability of critical manufacturing equipment.

Alcoa’s $3.1 billion aerospace portfolio includes: Alcoa Fastening Systems (approx. 25 percent of revenues); Alcoa Power and Propulsion (approx. 35 percent); and Alcoa’s sheet, plate and hard alloy extrusions serving the structures market (approx. 40 percent).

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 including flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa® wheels, fastening systems, precision and investment castings, structures and building systems. The company has 122,000 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