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April 27, 2002

Alcoa World Alumina and Chemicals and the Government of Jamaica to Invest $115 Million to Expand Jamalco Alumina Refinery Operations

CLARENDON, Jamaica--(BUSINESS WIRE)--April 27, 2002--Alcoa (NYSE:AA)

Levy on Bauxite Removed;

Investment Will Significantly Reduce Costs at Facility

Alcoa World Alumina and Chemicals (AWAC) -- a global alliance between Alcoa Inc. and WMC, Ltd. -- and the Government of Jamaica today announced that they have reached an agreement to invest $115 million to expand the Jamalco alumina refinery in Clarendon, Jamaica.

Jamalco is a 50/50 relationship between AWAC and the Government of Jamaica with AWAC as the managing partner. The Government of Jamaica also announced the removal of the 28-year-old levy on bauxite from Jamalco, effective in 2003 when the expansion is expected to be completed.

The expansion will increase the capacity of the Jamalco refinery by 25% making it a 1.25 million metric tons per year refinery. The removal of the levy along with the expansion will lower costs at Jamalco by approximately 30%.

"Our partnership with the Government of Jamaica has grown stronger over the past 43 years," said Alcoa Chairman and CEO Alain Belda. "We are committed to working toward making the Jamalco operation a world class and globally competitive facility. The reduced costs to be achieved from the introduction of new technologies, lower raw materials costs and improved efficiencies will bring Jamalco in line with our other low cost facilities in the refinery system."

The Prime Minister of Jamaica, Rt. Hon. P.J. Patterson responded, "Looking back as we have today over the past 43 years of Alcoa's involvement in Jamaica, the 30 years of existence of this refinery, and the platform which the industry provided for transforming our economy, we anticipate that Alcoa's already significant contribution to the long-term development of Jamaica will continue. We expect also that its outstanding record of support for community development in Clarendon will be maintained. Its relationship with the Government has been critical to these successes. This expansion which is to take place provides further evidence of how this relationship can work for the good of Jamaica and the businesses located here."

Alcoa began operations in Jamaica more than 40 years ago with bauxite mining. In 1972 the company began alumina refining there, and in 1988 it completed an agreement that made the Government of Jamaica a 50% owner of the operations.

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 products and components are used worldwide in aircraft, automobiles, beverage cans, buildings, chemicals, sports and recreation and in a wide variety of industrial and consumer applications, including such Alcoa consumer brands as Alcoa(R) 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. The company has 129,000 employees in 38 countries.

Alcoa Inc. (NYSE:AA)

Certain statements relate to future events and expectations and as such constitute forward-looking statements involving known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Alcoa 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 other risk factors summarized in Alcoa's SEC reports.