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March 28, 2002

Alcoa Raises Stake In Shibazaki To More Than 70%; Will Make Friendly Tender Offer For Remainder of Company

PITTSBURGH--(BUSINESS WIRE)--March 28, 2002--Alcoa Inc. (NYSE:AA) today announced it has purchased an additional 20.3% stake, or 2.845 million shares, in Shibazaki Seisakusho Ltd., a Japanese manufacturer of plastic and aluminum closures and caps for the beverage and pharmaceutical industries, from The Furukawa Electric Co., Ltd., for a total of approximately $17 million (approximately $6.02 or 800 yen per share).

This private acquisition raises Alcoa's holding in Shibazaki to 70.8% from its original 50.5% investment in Shibazaki, which it has held since 1979.

Alcoa also announced it will begin a tender offer under Japanese law beginning March 29, 2002 for all of the approximately four million remaining shares of Shibazaki that it does not own at the same price of 800 yen per share, or a total of approximately $25 million, through its wholly owned subsidiary, Alcoa Closures Holding Company LLC. The tender offer price of 800 yen per share is supported by the Shibazaki Board of Directors. The offer will expire at the close of business in Tokyo on April 30, 2002. Following the offer, Alcoa intends to operate the business with the current Shibazaki management and workforce.

"This increased investment in Shibazaki Seisakusho is a natural extension of our original 1979 investment in this growing company," said Alcoa Chairman and CEO Alain Belda. "This step furthers our strategy to grow revenues and profits in our packaging and consumer businesses. Shibazaki has strong management, a well-deserved reputation for excellence in customer service, and is well positioned in the industry for the future."

Shibazaki, through its partnership with Alcoa, is a leader in Japan in the closures and caps market. It had 2001 sales of approximately $84 million (11 billion yen). The company has 330 employees, with most located at its manufacturing facility in Nogi, Japan.

Alcoa is the world's leading producer of primary aluminum, fabricated aluminum and alumina, and is active in all major aspects of the industry. Alcoa's aluminum and components are used worldwide in aircraft, automobiles, beverage cans, buildings, chemicals, sports and recreation, and a wide variety of industrial and consumer applications, including such Alcoa consumer brands as Alcoa wheels, Reynolds Wrap(R) aluminum foil, and Baco(R) household wraps. Among its related businesses are precision castings, vinyl siding, closures, and electrical distribution systems for cars and trucks. It has 129,000 employees in 38 countries.

Forward Looking Statement

Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown risks and uncertainties that may cause actual results, performance or achievements related to this transaction to be different from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include Alcoa's inability to achieve the level of growth anticipated by management, including possible increases in the cost of doing business resulting from economic or competitive factors in Japan, and other risk factors summarized in Alcoa's Form 10-K for the year ended December 31, 2001.