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February 23, 2009

Alcoa Continues Commitment to Communities

PITTSBURGH--Alcoa (NYSE:AA) and Alcoa Foundation have confirmed a continued commitment to corporate citizenship and community sustainability amidst the economic downturn, reporting 2008 community contributions that included record employee volunteerism and philanthropic giving focused on building community resilience.

Combined community giving reached $50.6 million in 2008, with close to 55% of Alcoa Foundation funds targeted toward strengthening of vital community service organizations, adaptation of skills for a changing workforce; and improving access to and quality of child health care.

Alcoa employees rallied with hands on support for their communities in 2008, with record participation in the company’s volunteer programs. Employees contributed more than 705,000 of their own service hours, the equivalent of 350 people working full time.

In reporting the annual results, Alcoa President and CEO Klaus Kleinfeld thanked employees and Alcoa Foundation partners for their enthusiastic commitment to addressing priority community concerns and helping local communities worldwide to meet the challenges of the current economic crisis.

“In 2008,a year of serious economic challenges, Alcoa, Alcoa Foundation and thousands of our employee volunteers focused our attention on two important goals -- providing basic necessities to those in need and investing in the sustainability of our planet."

“Looking to the future, Alcoa remains committed to working alongside our community partners and stakeholders to assess the local impact of the global downturn and respond by ensuring our philanthropic resources are meeting priority needs and contributing to a sustainable future for the communities where we live and work."

Now entering its 56th year, Alcoa Foundation has invested more than US$490 million since 1952 to address the needs of Alcoa communities worldwide.

2008 Community Contribution Highlights:

Strengthening community response to downturn:

$14.3 million (55%) in Alcoa Foundation funding was directed toward strengthening community response to the economic downturn:
  • $3 million for provision of basic services and emergency needs assistance;
  • $5.3 million for re-skilling and technical training programs to assist communities adapt in a changing workforce;
  • $6 million ensured access to and quality of child health programs
  • Following the economic collapse in Iceland, Alcoa and Alcoa Foundation responded with a support package to assist with the provision of food, social services, training and job finding services to help sustain the local community in a time of immense need.

Increased employee volunteerism at a time of need:

Over 19,800 volunteer activities recorded through Alcoa’s volunteer programs in 2008, with volunteer hours adding to over 705,000 – the equivalent of more than 350 people working full time. Alcoa matched the time of employee volunteers with grants totaling over US$4 million to local organizations.

As the economic crisis unfolded, employees came out in record numbers to take part in the company’s annual month-long volunteer event, Worldwide Month of Service, with nearly 22,000 employees (24%) undertaking 699 service projects with a clear focus on addressing emerging needs:
  • 273 shelters and community facilities repaired or rebuilt;
  • 160 events directly assisted the disadvantaged - including food and coat drives
  • Over 7,300 meals were served to those in need.

In addition to economic downturn response, Alcoa and Alcoa Foundation community partnerships in 2008 focused on projects and initiatives across 32 countries that contributed to combating global climate change; strengthening education and skills development; improving child health and safety; and revitalizing communities.

Finding solutions to global climate change

In line with the leadership position on climate change taken by Alcoa in achieving a 36 percent reduction in total direct greenhouse gas emissions in 2008 from its worldwide primary aluminum production process, a 3 percent reduction over 2007 levels, Alcoa Foundation has made a major contribution to wider community efforts to address this global issue.
  • In the last three years (2006-2008) Alcoa Foundation has invested more than $22 million in community-based projects to inform public policy, build capacity, raise awareness and mobilize action around global climate change.
  • Additionally, since late 2005, Alcoa Foundation’s flagship $9.2 million Conservation & Sustainability Fellowship Program has been unlocking answers to the most challenging sustainability issues facing the world today - climate change, energy use, water management, accelerated growth and development in all corners of the globe.
  • Alcoa Foundation has provided more than $1.9 million since 2006 to mobilizing action on climate change in Alcoa communities through the Make an Impact carbon footprint reduction program, in partnership with Greening Australia in Australia and Pew Center on Global Climate Change in the United States. This innovative program has created a leading edge interactive website and carbon calculator to enable family GHG reduction and energy savings. In the three months following its US, the program identified potential household savings of 800,000 lbs of GHG’s, translating to collective saving in energy costs of over $190,000.
  • Recycling is a major sustainability issue around the globe and one with clear connection to our business. Alcoa Foundation has funded more than 30 projects totaling in excess of $1.3 million in the last three years to assist community-based recycling programs in communities ranging from Indianapolis, Indiana, and Morristown, New Jersey, in the United States, to Arad, Romania, and Amorbieta, Spain, and across Quebec, Canada, and Victoria, Australia.

Strengthening education and workplace skills
  • Access to and quality of education is critical to the strength of communities and their future. In 2008 24% of Alcoa Foundation funding contributed to improving access to quality education, building capacity of educational institutions, strengthening science-based skills and skills adaptation in a changing workforce.
  • From partnering Global Kids to improve the academic performance of urban students living below the poverty line in New York City, to building the next generation of engineers in Russia in partnership with three key Universities, to fostering entrepreneurship and small business skills in Brunei, Alcoa Foundation invested more than $6 million in education and training programs to equip communities to be innovative, resilient and transformative.

Other Community Investment Highlights around the Globe
  • USA: Across the United States Alcoa Foundation is supporting development of the next generation of science and innovation leaders, with a focus on diversity. A partnership with Girls Inc. is empower young girls reach their full potential through a suite of gender-specific programs around health, science, math, and technology, economic and financial literacy, leadership and advocacy skills. In Michigan, Alcoa Foundation supported 79 young women attend the STEPS (Science, Technology and Engineering Preview Camp), one of the nation’s leading technology based outreach programs for introducing girls to manufacturing, engineering and other sciences skills through interaction and mentoring from female teachers and professionals.
  • Canada: Alcoa Canada and Alcoa Foundation have committed US$1 million to the Ville de Baie-Comeau toward construction of an arts and culture center and an arts exhibition hall. This funding has been leveraged to secure the remaining US$7 million from federal, provincial, and local governments. In addition, Entrepreneurial Action Service is building a footbridge and walking path over the Amedee River in Baie-Comeau City center to give community members access to a newly landscaped park.
  • Brazil: Conservation International Brazil is protecting areas in the Tapajós-Madeira Nucleus, one of the most important sectors of the Southern Amazonia Biodiversity Corridor, through a five-year $505,000 partnership. The program brings local institutions together to share promising conservation practices and monitor progress in protected areas. Lessons-learned from this project will be used to expand the biodiversity corridor to other areas.
  • Europe: Alcoa Foundation has been working in partnership with the World Organization of the Scout Movement since 2006, to develop and tested a Scouting Environment Program. The program -- which is now being launched by National Scouting Organizations across the world -- uses creative activities and an environment merit badge to inspire scouts both to learn more about environmental issues and to take action. For example, through the program over 1,600 scouts in Switzerland are increasing their recycling rates.
  • China: In partnership with tertiary institutions in Beijing, China and Philadelphia, USA, the Judicial Education Program is building capacity in the Chinese judicial field - increasingly significant given China’s evolving role in the world, its rapid growth and its legal and economic reforms. The program is providing Chinese judges with training on the US legal system, including civil and commercial law, judicial ethics and maintaining neutrality, rules of evidence and best practices in court administration for improved judicial efficiency.
  • Jamaica: Alcoa Foundation is working to improve access to education in rural communities adjacent to our mining operations in Jamaica. A partnership with The Jamaican Foundation for Lifelong Learning will deliver a community education program focused on raising the standard of literacy among rural farming communities across Manchester and Clarendon, resulting in increased employment and training prospects across these communities. A second partnership with United Way will establish an early childhood institution in rural Southern Manchester, contributing to early cognitive development among local children and preparing them for lifelong learning.
  • Australia: A focus on improving child safety and health has led to a partnership with K.I.D.S. Foundation to reduce childhood injuries, the leading cause of death for Australian children. Since 2004, Alcoa Foundation has contributed $873,000 to deliver safety awareness programs in 16 pre-schools and 40 primary schools across Australia, while over 126,000 students participated in 2008 Injury Free Day to raise awareness of safe behaviors.
  • Guinea: Guinea’s forest region is one of the highest priority regions in the world for primate conservation, requiring development of sustainable livelihoods in many settlements. In Boke, Alcoa is partnering Jane Goodall Institute to reach out to local communities to train them in village-level economic planning and the development of environmentally-friendly enterprises as part of a wider chimpanzee conservation awareness campaign. To date 144 officials have been trained in preparing community natural resource plans to guide development in their villages.
  • Iceland: Alcoa Foundation is supporting a portfolio of economic and social development programs to help rural and isolated communities in North and East Iceland grow and prosper. A package of grants is revitalizing these communities, leading to improved standards of living, increased amenity and the attraction of new residents and visitors. Key projects included the renovation of an outdoor skiing area and information center in Stafdalur, in the vicinity of Alcoa’s Fjardaál smelter; the establishment of an international cinema and video festival and the development of a cultural center and sports fund. In addition, a grant to renovate the Sómastadir House - of the few remaining stonebrick buildings in Iceland - will preserve a key piece of local cultural heritage and assist locals and visitors discover more about how people in past centuries lived, worked and designed their communities to best cope with the stark environment.

About Alcoa
Alcoa is the world leader in the production and management of primary aluminum, fabricated aluminum and alumina combined, through its active and growing participation 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, and building systems. The Company has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland and has been a member of the Dow Jones Sustainability Index for seven consecutive years. More information can be found at

About Alcoa Foundation
Alcoa Foundation is a separately constituted nonprofit U.S. corporate foundation with a mission to actively invest in the quality of life in Alcoa communities worldwide. For more than 57 years, Alcoa Foundation has been addressing the needs of Alcoa communities with over $490 invested since 1952.

In 2008, combined by Alcoa and Alcoa Foundation totaled US$50.6 million. Alcoa Foundation provided nearly US$26.2 million in grants in 35 countries where Alcoa operates, with Alcoa and Alcoa-related foundations contributing another US$24.4 million to support projects and partnerships with NGOs around the world.

Alcoa Foundation manages the Alcoa employee volunteer programs ACTION and Bravo! through which Alcoa employees gave more than 705,000 hours of voluntary service in 2008, matched by over $4 million in grants to local organizations. For more information, visit