Airbus Awards Long-term Contract to Kaiser Aluminum to Supply Heavy Gauge Aluminum Plate.

FOOTHILL RANCH, Calif. -- Kaiser Aluminum today announced the signing of a new long-term agreement with Airbus to supply heavy gauge aluminum plate for use in the production of their aircraft. The multi-year agreement will significantly increase the amount of Kaiser Aluminum's fabricated products produced at Kaiser's Trentwood, Washington rolling mill to be used by Airbus.

"Kaiser Aluminum has been a major supplier of high-quality aluminum sheet and light gauge plate to Airbus for years and this agreement further strengthens the long-term relationship between the two companies," said Jack A. Hockema, president and CEO, Kaiser Aluminum.

Hockema said, "The aerospace manufacturing industry has been experiencing significant growth with the continued increase in air traffic compounded by retirement of aging aircraft. Airbus is well positioned to benefit greatly from this growth and will have increased needs for high-quality aluminum sheet and plate."

Hockema added, "Kaiser Aluminum has a long history as one of the world's top producers of aluminum sheet and plate for aerospace applications. The expansion of our relationship with Airbus demonstrates Kaiser's strong competitive position that will help our aerospace customers meet the growing demand for their products and help Kaiser achieve its goal of profitable growth."

Kaiser Aluminum recently announced a $75 million capital investment to expand its Trentwood facility including the addition of a state-of-the-art heavy gauge stretcher, horizontal heat treat furnaces, ultrasonic inspection system and other ancillary equipment, to complement existing capabilities. The expansion is slated to proceed over the next three years with full online capacity available in 2008.

The heavy gauge contact is the second recent long-term contract awarded to Kaiser Aluminum by Airbus this year. On June 6, 2005, Airbus awarded Kaiser Aluminum a six-year agreement to provide heat treat aluminum sheet and light gauge plate to its aircraft operations.

Headquartered in Toulouse, France, Airbus is jointly owned by the European Aeronautic Defense and Space Company (80 percent) and BAE Systems (20 percent).

Kaiser Aluminum (OTCBB:KLUCQ) is a leading producer of fabricated aluminum products for aerospace and high-strength, general engineering, automotive, and custom industrial applications. The company has more than 2,000 employees and 11 plants in North America having the capacity to produce more than 400 million pounds annually of value-added sheet, plate, extrusions, forgings, rod, bar, and tube.

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