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November 6, 2001

Alcoa and Chalco Form Strategic Alliance

PITTSBURGH--November 6, 2001-- Alcoa Inc. announced today that it has finalized agreements for a strategic alliance with Aluminum Corporation of China Limited (Chalco). These agreements mark the beginning of what both companies believe will be a long-term strategic partnership.

Under the strategic alliance, Alcoa and Chalco are forming a 50/50 joint venture at Chalco's facility at Pingguo, which is one of the most efficient alumina and aluminum production facilities in China. Alcoa believes that the proposed joint venture will allow it to benefit from the growth of China's aluminum market, the fastest growing in the world. Alcoa will transfer management, operational and technical expertise, and best practices to Chalco.

The parties have committed to significantly increase both the refining and smelting capacities at Pingguo over the next few years. Pingguo's current alumina refining capacity is 400,000 metric tons per year (mtpy), with plans to double that capacity by 2003. There are also plans to expand the 135,000-mtpy aluminum smelter at Pingguo by 220,000 mtpy, bringing total capacity to 355,000-mtpy by 2006.

As part of the alliance, Alcoa will also become the strategic investor in Chalco’s proposed global offering and listing on the New York Stock Exchange and The Stock Exchange of Hong Kong. An offshore subsidiary of Alcoa, Alcoa International (Asia) Ltd., will make the investment, which is expected to equal 8% of the issued and outstanding shares of Chalco after the global offering. In connection with its investment, Alcoa will also be entitled to one seat on Chalco’s board of directors. Aluminum Corporation of China, or Chinalco, the parent company of Chalco, will remain the largest shareholder in Chalco.

Alcoa Chairman and CEO Alain Belda said “Alcoa is committed to profitable growth. Our alliance with Chalco will provide Alcoa ready and reliable access to aluminum produced in China, the fastest growing economy in the world. We expect our alliance to lead to a series of joint ventures in China where the mutual strategic objectives of Alcoa and Chalco can be realized through the combination of each company’s respective resources and strengths. Alcoa's participation in the primary sector will also support our further growth in fabricated products in China. We think this will, in turn, facilitate the continued rapid development of the aluminum market in China.”

Alcoa expects to complete negotiation of the definitive Pingguo joint venture agreements by the end of 2002. The Pingguo joint venture is subject to clearance by regulatory authorities in China. No U.S. regulatory approvals are required.

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.

Chalco is the sole alumina producer and the largest producer of primary aluminum in China, and the third largest alumina refiner in the world. Its mining, refining and smelting operations are the largest in the Chinese aluminum industry.

Editorial Contact:
Joyce A. Saltzman
Alcoa Inc.

Investor Relations:
Charles D. Mclane Jr.
Alcoa Inc.