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May 13, 2003

AFL Automotive to Restructure Mexican Operations

PITTSBURGH--(BUSINESS WIRE)--May 13, 2003--Alcoa today announced that its Alcoa Fujikura Ltd. (AFL) Automotive operations will restructure its operations in Ciudad Acuna and Torreon, Coahuila, Mexico in order to maintain competitiveness within the overall North American light and heavy vehicle marketplace.

As a consequence it is necessary to permanently reduce approximately 1,700 positions in Ciudad Acuna and 2,550 positions in Torreon. The reorganization is expected to be completed by July 31, 2003 and is part of Alcoa's previously announced (January 8, 2003) fourth quarter 2002 restructuring program.

The AFL Automotive manufacturing operations in Piedras Negras will also be affected by a reorganization. However, due to the anticipated startup of a new production line there, affected associates in Piedras Negras will continue to work by attending special training programs.

AFL Automotive's Ciudad Acuna, Torreon and Piedras Negras operations, which currently employ approximately 24,000 associates (approximately 11,000 in Ciudad Acuna; 8,400 in Torreon; 4,600 in Piedras Negras), produce electrical distribution systems and other products for the North American light and heavy vehicle markets. Including three other locations not directly affected by the reorganization, AFL Automotive employs approximately 30,000 people in Mexico.

Jose Alvarado, AFL Automotive - Mexico Vice-President, said, "This difficult decision is the result of overall market conditions. The North American light vehicle market is extremely competitive and we need to make these tough decisions in order to be effective today and beyond.

AFL Automotive recognizes the impact that this workforce reduction will have on the lives of its employees, their families and the community at large. Severance, in addition to a combination of outplacement and transition support services, will be made available to all affected employees.

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 serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses as a single solution to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) aluminum foil, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding, closures, precision castings, and electrical distribution systems for cars and trucks. The company has 127,000 employees in 40 countries. For more information go to www.alcoa.com

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 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 implement the reorganization and achieve cost-savings at the facilities and other risk factors summarized in Alcoa's Form 10-K for the year ended December 31, 2002.