• Second quarter 2007 income from continuing operations of $716 million or $0.81 per share.
• Revenues reach quarterly record of $8.1 billion.
• Cash from operations rose to a record $1.35 billion.
• Debt-to-capital ratio at 29.4 percent, lowest in this decade.
• Five of six segments increase ATOI sequentially.
• Downstream Flat-Rolled Products, Extruded and End Products, and Engineered Solutions each deliver quarterly ATOI records.
• ROC including major growth investments of 11.8 percent; excluding growth projects, ROC was 14.7 percent.

• Alcoa is, and the combined company will be, subject to cyclical fluctuations in London Metal Exchange primary aluminum prices, economic and business conditions generally, and aluminum end-use markets;
• Alcoa's operations consume, and the combined company's operations will consume, substantial amounts of energy, and profitability may decline if energy costs rise or if energy supplies are interrupted;
• The profitability of Alcoa and/or the combined company could be adversely affected by increases in the cost of raw materials;
• Union disputes and other employee relations issues could adversely affect Alcoa's and/or the combined company's financial results;
• Alcoa and/or the combined company may not be able to successfully implement its growth strategy;
• Alcoa's operations are, and the combined company's operations will be, exposed to business and operational risks, changes in conditions and events beyond its control in the countries in which it operates;
• Alcoa is, and the combined company will be, exposed to fluctuations in foreign currency exchange rates and interest rates, as well as inflation and other economic factors in the countries in which it operates;
• Alcoa faces, and the combined company will face, significant price competition from other aluminum producers and end-use markets for Alcoa products that are highly competitive;
• Alcoa and/or the combined company could be adversely affected by changes in the business or financial condition of a significant customer or customers;
• Alcoa and/or the combined company may not be able to successfully implement its productivity and cost-reduction initiatives;
• Alcoa and/or the combined company may not be able to successfully develop and implement new technology initiatives;
• Alcoa is, and the combined company will be, subject to a broad range of environmental laws and regulations in the jurisdictions in which it operates and may be exposed to substantial costs and liabilities associated with such laws;
• Alcoa’s smelting operations are expected to be affected by various regulations concerning greenhouse gas emissions;
• Alcoa and the combined company may be exposed to significant legal proceedings, investigations or changes in law; and
• Unexpected events may increase Alcoa's and/or the combined company's cost of doing business or disrupt Alcoa's and/or the combined company's operations.

Return on capital, excluding growth investments is a non-GAAP
financial measure. Management believes that this measure is meaningful
to investors because it provides greater insight with respect to the
underlying operating performance of the company's productive assets.
The company has significant growth investments underway in its
upstream and downstream businesses, as previously noted, with
expected completion dates over the next several years. As these
investments generally require a period of time before they are
productive, management believes that a return on capital measure
excluding these growth investments is more representative of current
operating performance.

(1) The Bloomberg Methodology calculates ROC based on the trailing
    four quarters. Average balances are calculated as (June 2007
    ending balance + June 2006 ending balance) divided by 2 for the
    twelve-month period ending June 30, 2007, and (June 2006 ending
    balance + June 2005 ending balance) divided by 2 for the
    twelve-month period ending June 30, 2006.

(2) Certain financial information has been reclassified to reflect
    the movement of the home exteriors business to discontinued
    operations in the third quarter of 2006 and the soft alloy
    extrusions business as held for sale in the fourth quarter of
    2006.

(3) For all periods presented, growth investments include Russia and
    Bohai. Kunshan is also included as a growth investment for the
    twelve-month period ending June 30, 2007.

(4) Calculated as total shareholders' equity less preferred stock.

Days of Working Capital = Working Capital divided by (Sales/number of
days in the quarter)

(a) Certain financial information has been reclassified to reflect
    the movement of the home exteriors business to discontinued
    operations and as held for sale in the third quarter of 2006, and
    the soft alloy extrusions business as held for sale in the fourth
    quarter of 2006.

Income from continuing operations - excluding restructuring and other
charges and transaction costs is a non-GAAP financial measure.
Management believes that this measure is meaningful to investors
because management reviews the operating results of Alcoa excluding
the impacts of restructuring and other charges and transaction costs.
There can be no assurances that additional restructuring and other
charges and transaction costs will not occur in future periods. To
compensate for this limitation, management believes that it is
appropriate to consider both income from continuing operations
determined under GAAP as well as income from continuing operations -
excluding restructuring and other charges and transaction costs.

(a) Certain financial information has been reclassified to reflect
    the movement of the home exteriors business to discontinued
    operations in the third quarter of 2006.

(b) Transaction costs (investment banking, legal, accounting, and
    other third-party expenses related to the Alcan offer) are
    included in Selling, general administrative, and other expenses
    on the Condensed Statement of Consolidated Income.