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January 9, 2002

Alcoa Acquires Additional Stake in Elkem; Will Make Legally Mandated Tender Offer

PITTSBURGH & OSLO, Norway--(BUSINESS WIRE)--Jan. 9, 2002--Alcoa (NYSE:AA) announced today that it has raised its equity stake in Elkem ASA (OSE:ELK), a Norwegian industrial company, above 40%. Alcoa has had a significant minority stake in Elkem for several years, and has held 39.5% of Elkem's shares since October 2001.

Under Norwegian securities law, Alcoa is now required to initiate an unconditional cash tender offer for the remaining outstanding shares of Elkem at a price equal to the highest price paid by Alcoa during the last six months. In accordance with that law, Alcoa will offer Elkem shareholders 155 Norwegian kroner ($17.38) for each outstanding share. As mandated by law, the tender offer will remain open for four weeks. Elkem currently has approximately 49,280,000 shares outstanding.

Alcoa believes that Elkem's diversified business offers a solid value at NOK 155 per share. Alcoa expects that the current management team of Elkem will continue to deliver growth and value for its shareholders.

Elkem, through its 50/50 partnership with Alcoa, is the second largest producer of aluminum in Norway. Elkem Aluminium has a primary production capacity of 200,000 metric tons per year. Elkem is also the world's largest supplier of silicon metal, which has become increasingly important in aluminum castings for the automotive industry.

Alcoa has a nearly 40-year history of operating in Norway through joint ventures with Elkem. Together, Elkem and Alcoa own and operate aluminum plants in Lista and Mosjoen, and have made significant commitments to modernizing both facilities. The modernization at Mosjoen is a joint investment of NOK 1800 million ($202 million) over two years, and all three potlines at Lista have been converted to Elkem's new Soderberg technology. Alcoa has also invested NOK 500 million ($56 million) in the state-of-the-art Scandinavian Casting Center in Lista, Norway to produce structural components for cars.