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April 25, 2001

Alcoa Establishes Environmental Program Based on Sustainable Development; Sets Ambitious Environmental Goals

PITTSBURGH--April 25, 2001-- Alcoa Chairman and CEO Alain Belda announced at the company's annual meeting of shareholders last Friday that Alcoa had established a long-term environmental program based on sustainable development principles and had set ambitious environmental goals "that will guide the company's programs over the next 20 years."

"Sustainable development is the basis for Alcoa's 2020 Global Environmental Strategy," Mr. Belda said. "Sustainability requires environmental excellence, economic success and social responsibility.

"This is the Alcoa Business System at work -- a quest for perfection," Mr. Belda continued. "We have developed a strategic framework that allows each of our businesses worldwide to develop their own goals and action plans within that framework. This set of goals will be milestones along the way to the ultimate vision of a company where all wastes have been eliminated, where products are designed for the environment, where the environment is fully integrated into manufacturing, where the workplace is incident free, where protecting the environment is a core value of every employee and where all stakeholders recognize Alcoa as a leader in sustainable development."

Following are Alcoa's new environmental targets for cleaner air, and better use of land and water.

From base year 2000:
» A 60% reduction in S02 emissions by 2010;
» A 50% reduction in Volatile Organic Compound emissions by 2008;
» A 30% reduction in emissions of nitrogen oxides by 2007;
» An 80% reduction in mercury emissions by 2008;
» A 50% reduction in landfilled waste by 2007; and
» A 60% reduction in process water use, and discharge, by 2008.

From base year 1990:
» A 25% reduction in greenhouse gas emissions by 2010. Assuming success with the inert anode technology, a 50% reduction by 2010.

In addition, Alcoa is committed to:
» Implementation of effective environmental management systems, such as ISO 14001, at Alcoa's more than 350 operating locations by 2005;
» Community engagement programs established at all Alcoa businesses by 2004;
» Increased emphasis on product design for the environment and on product recycling or reuse;
» A cost reduction of $100 million per year by 2005 from energy and raw materials savings, waste reduction, environmental management cost reductions and recycling;
» Linking environmental accountability with performance expectations and compensation; and
» Monitoring and reporting on our progress.

Alcoa is the world's leading producer of primary aluminum, fabricated aluminum, and alumina. It is active in all major aspects of the industry -- technology, mining, refining, smelting, fabricating, and recycling. Alcoa has operations in 37 countries.

Editorial Contact:
Bonita A. Cersosimo
412-553-4462

Investor Relations:
Charles D. McLane
212-836-2674