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July 16, 2003

Alcoa Begins Troutdale Site Restoration

TROUTDALE, Ore.--(BUSINESS WIRE)--July 16, 2003--Alcoa, Inc. today announced it has formalized the plan and process for site restoration at the former Reynolds Metals Company Troutdale Aluminum Reduction Plant. Alcoa's comprehensive site plan includes the complete dismantling and demolition of the plant structures, removal of process materials and wastes from discrete locations, restoration of Company Lake, and preparation of the site for redevelopment. Alcoa intends to offer the property for redevelopment upon completion of the project, which will again provide employment opportunities for the East County community. The plant is located in Troutdale, Oregon, just north of the Troutdale Airport and South of the Columbia River. The site encompasses 700 acres, with the old aluminum reduction plant situated on 107 acres. Reynolds has had a long association with the Troutdale and Gresham area communities.

The aluminum smelter was built and operated by Alcoa from 1941 to 1945 for the Department of Defense. In 1946 Reynolds Metals Company began leasing the smelter from the War Assets Department and completed purchase of the facility in 1949. Reynolds Metals Company was purchased by Alcoa in May 2000. Aluminum production was temporarily curtailed in June 2000. The facility was permanently closed in July 2002. During 2001 and 2003, Alcoa donated more than $150,000 of materials to the Reynolds School District, Portland School District, Gresham Barlow Schools, and Mt. Hood Community College. Alcoa intends to complete the restoration project and provide the land for redevelopment within 3 to 4 years of the start of the project.

Multiple contractors will perform on-site work for Alcoa. The on-site work will include the dismantling and demolition of the aluminum smelter, removal of subsurface structures, remediation and restoration of Company Lake and on-site landfills, and site preparation for redevelopment.

The majority of the site will be available for redevelopment upon the completion of the project and restoration will be completed around Company Lake and at other discrete site locations. Alcoa has a long history of successful restoration and redevelopment projects. At the Squaw Creek Mine near Chandler, Indiana, more than 162 hectares (400 acres) of warm-season prairie grasses are providing refuge to myriad wildlife and serving as an example of an award-winning reclamation success.

Safety and environmental considerations are at the forefront of this project. Alcoa is taking all possible precautions to keep workers safe. The environmental impact of the site restoration project will be negligible, in keeping with Alcoa's strict environmental management policies. No risk to the surrounding community is expected. The US EPA, Oregon DEQ, and the City of Troutdale will perform oversight for various phases of the site restoration project.

Site access restrictions will be put into effect, starting this July, and continuing for the duration of the project. Historically, Alcoa has allowed the public access to the Columbia and Sandy Rivers by passing through the Reynolds property. During the restoration project, public access will not be allowed in the area north of the Army Corp of Engineers Dike to ensure the utmost safety in this area where active work is occurring.

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.