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April 27, 2010

Alcoa Announces Winners of 2009 Tier 1 Core Truckload Carriers Awards

KNOXVILLE, Tenn.--(BUSINESS WIRE)--Alcoa (NYSE:AA) announced the winners of its annual Tier 1 Core Truckload Carrier Awards Program. The program measures, acknowledges and rewards the performance of Alcoa’s Tier 1 U.S. and Canadian truckload carriers for providing exemplary service to Alcoa during 2009. Alcoa further recognized the best-in-class performers in this group.

First time winner, Builders Transportation Company of Memphis, Tennessee, was honored for exceptional flatbed service.
Remorquage St-Michel, Inc. of St-Michel, Canada, won the Canadian carrier of the year award for the third straight year by delivering excellent truckload service between the U.S. and Canada and within the Provinces, and
Covenant Transport of Chattanooga, Tennessee, has been a juggernaut in this competition by winning the top award for outstanding van service for the fourth year in a row.
Special recognition was given to CMI Freight-Trans, located in Chicago, Illinois, for delivering several innovative logistics solutions to Alcoa, some of which were not germane to their core business.

The awards are modeled after the Alcoa forged aluminum truck wheel.

Ed Hamorsky, Director of Logistics and Transportation said, “The economic crisis that gripped the world in 2009 and is still lingering well into 2010, forced many difficult sourcing decisions by companies regarding suppliers of goods and services. Some companies responded to the 2009 truckload market by exponentially increasing their carrier base and abandoning long term carrier relationships to leverage down their costs by bringing in new suppliers into their network. Alcoa took another path. We decided to leverage the already strong relationships we had developed with our core carriers and asked for their help to lessen our costs. They trusted our vision and responded immediately by intimately working with us to uncover opportunities to reduce our transportation costs. Subsequently, Alcoa did not pursue any new contracts for flat bed or van service in 2009 and we worked diligently to drive freight to the core carriers who stood by Alcoa.”

Tim Reyes, President of Alcoa Materials Management, added: “Alcoa achieved its business sustainability goals for 2009. That critical achievement would not have been possible without the commitment delivered by Alcoa suppliers, such as our North America Tier 1 Core Carriers. This program continues to deliver enormous value to all participants and because of the trust we have nurtured the past several years, we are able to execute quickly and decisively as the market transforms, allowing all parties to benefit.”

Selection criteria for carrier performance metrics includes volume growth, actual delivery data population, published rate turnaround time, tender offer acceptance/expiration percentages.

In addition, specific qualifications are required to participate as an Alcoa Tier 1 Core Carrier. These include: provide service to multiple Alcoa businesses; cost competitive; meets Alcoa business performance expectations, i.e., pickup, delivery and safety; reconcile loss & damage claims and transmit advance shipping notification.

During the event, Alcoa also conducted a presentation on wheel loss prevention.

Following is the list of Alcoa Tier 1 Core Carriers:

Alcoa Flatbed Tier 1 Core Carriers – U.S.

Builders Transportation, CO, LLC – Memphis, Tennessee

CRST Malone, Inc. – Birmingham, Alabama

TMC Transportation – Des Moines, Iowa

Alcoa Van Tier 1 Core Carriers – U.S.

Celadon Trucking Services, Inc. - Indianapolis, Indiana

Covenant Transport, Inc. - Chattanooga, Tennessee

Swift Transportation Corporation - Phoenix, Arizona

USA Truck, Inc. - Van Buren, Arkansas

Alcoa Truckload Tier 1 Core Carriers – Canada

Equipment Masse, Inc. (Masse Express), Trois-Rivieres, PQ

Dubois Transport, Napierville, PQ

Remorquage St-Michel, Inc., St-Michel, PQ

JCG Transport, Trois-Rivieres, PQ

Transnat Express, Inc., Plessissville, PQ

Alcoa Intermodal Tier 1 Core Carrier

CMI Freight-Trans – Chicago, Illinois