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December 6, 2007

Alcoa Applauds U.S. House of Representatives for Passage of New Vehicle Fuel Efficiency Standards

NEW YORK--Alcoa (NYSE:AA) announced today it applauded the U.S. House of Representatives for passing new vehicle fuel efficiency standards incorporated in the energy bill. The bill would require 35 miles per gallon fuel average for new domestic vehicles, including SUVs, by 2020 – a 40 percent increase from current corporate average fuel-economy (CAFE) standards.

“Lightweight materials, such as aluminum, play a critical role in making vehicles safer, cleaner and more fuel efficient,” said Kevin Kramer, president, Alcoa Wheel Products, who oversees Alcoa’s Automotive Market Sector Team. “Light weighting represents one of the most viable options available to carmakers worldwide as they seek to improve the fuel efficiency and environmental performance of their products.”

The use of aluminum for vehicle lightweighting can deliver a substantial reduction in CO2 and other emissions over the life of the car through fuel savings, even allowing for the CO2 generated by the initial production of aluminum. Each pound of aluminum replacing two pounds of iron or steel in a car can save a net 20 pounds of CO2 emissions over the typical lifetime of a vehicle. Since 1990, increased use of aluminum in the world's vehicles has avoided burning 84 billion liters of gasoline and more than one billion metric tons of greenhouse gas emissions.

“In fact, it is projected that the growing use of aluminum in the transportation market will help make the aluminum industry greenhouse gas neutral by 2025,” said Kramer.

Alcoa’s support for the proposed CAFE standards is consistent with its leadership in addressing climate change. Since 1990, Alcoa has reduced its greenhouse gas emissions by 25 percent. The company also is a founding member of the United States Climate Action Partnership and the Global Roundtable on Climate Change.

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 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 116,000 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