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April 3, 2002

Alcoa to Invest up to $24 Million in Warrick Power Plant

NEWBURGH, Ind.--(BUSINESS WIRE)--April 3, 2002--Alcoa (NYSE:AA) has approved funding its share of a $48 million project that will reduce nitrogen oxide emissions by 80 percent annually on the largest generating unit at the company's Warrick Power Plant.

Alcoa will install a Selective Catalytic Reduction system on Unit 4 of the power plant. Selective Catalytic Reduction uses ammonia injected into flue gases to stimulate a reaction that changes NOx into nitrogen and water. NOx is a byproduct of coal-fired power plants and is associated with the creation of ground-level ozone.

"Installing an SCR is a major investment in our facility and in our community," said J.T. Hill, Warrick Power Plant manager. "The reductions we achieve once this project is complete will make a substantial contribution to Alcoa's corporate goal of reducing NOx emissions by 30 percent worldwide by 2007."

Alcoa and Vectren, an Evansville-based energy company, jointly own Unit 4, at 300 megawatts the largest of the plant's generating units. The companies will each pay half the cost of this project. Alcoa's board of directors approved the project at a meeting in late March. Vectren previously approved funding its portion.

Construction of the four-story SCR system will begin later this year. It will come on-line in 2004. The company is evaluating plans to cut NOx emissions by more than half on the power plant's other three generating units by 2004. Units 1-3 fall under separate requirements governing industrial boilers.

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.

The company employs approximately 2,600 people in Warrick County producing molten aluminum and aluminum sheet for the food, beverage can and other industries.