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July 7, 2003

Alcoa Awarded Preferred Supplier Status by Audi A.G.

PITTSBURGH, Pa. & SOEST, Germany--(BUSINESS WIRE)--July 7, 2003--Alcoa announced today that it has been awarded Preferred Supplier Status by Audi A.G. for outstanding performance during the launch of the German automaker's second-generation Audi A8. Alcoa Automotive is producing more than one million aluminum components each year for the new A8's spaceframe and doors for the life of its new luxury sedan platform. The new Audi A8 model is currently being sold in Europe and will be introduced in North America this summer.

Alcoa partnered with Audi more than two decades ago to jointly develop the all aluminum spaceframe body structure introduced on the first Audi A8, which made its commercial debut in the early 1990's. The A8 set standards for lightness, safety, performance and low emissions.

"As a preferred supplier, Alcoa will continue to collaborate with Audi, a leader of aluminum use in vehicles in the worldwide auto industry, on the most efficient and cost-effective application of automotive aluminum. Audi and Alcoa are now entering their third decade of partnership. We in Alcoa are delighted to be selected to receive this distinction as a preferred supplier. It reflects the cooperation between the two companies as well as the Soest plant's ability to be a reliable and high-quality supplier," said Rick Milner, vice president Alcoa and president of Alcoa Advanced Transportation Systems.

The aluminum components for the new A8 are produced at Alcoa's Soest, Germany automotive assembly plant. This facility supplied the spaceframe components as well as selected sub-assemblies for the first-generation A8, which is manufactured by Audi in Neckarsulm, Germany. In addition, Alcoa's Soest plant also makes automotive components for the Ferrari 360 Modena, Jaguar XJ, Porsche, General Motors Corvette and DaimlerChrysler S-Class Coupe and A-Class.

Alcoa supplies global automakers with a variety of automotive components and assemblies, including aluminum sheet for body panels and hoods, wheels, electrical and electronic systems, structural cast and forged components and assemblies such as bumpers, engine cradles, drive shafts, roof systems and the like through its various automotive businesses. Alcoa's worldwide automotive businesses have been integrated and aligned under an automotive market sector team, to give customers a single-point access to all of Alcoa's automotive capabilities.

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