Alcoa Foundation Marks Fifth Consecutive Year of Grant Increases; Overall Giving In 1999 Up 11% From 1998.

Business Editors

PITTSBURGH--(BUSINESS WIRE)--Jan. 28, 2000

Alcoa Foundation today reported that in 1999, total giving increased 11% to $17.94 million from $16.4 million in 1998. This is the fifth consecutive year that total giving was up at least $1 million from the previous year. The increases are due in part to the Foundation's improved earnings on its asset base which, at the end of 1999, was over $446 million. In Pittsburgh, the Foundation continued its 48-year history of grant making, reaching over 150 local non-profit organizations.

Alcoa Foundation made over 2,200 grants in 22 countries around the world in 1999. Nearly all of these grants were made in Alcoa communities to promote education, health and human services, civic and cultural improvements and overall quality of life.

&uot;Our growth in earnings has enabled us to extend our work and impact globally, across an increasing number of locations where Alcoa operates,&uot; noted Kathleen W. Buechel, president of Alcoa Foundation.

International Giving Posts Gains

The largest gain was in international giving, up 19.4%, at $3.1 million, compared with $2.62 million in 1998. This increase is part of the Foundation's strategic effort to reflect Alcoa's increasingly global presence.

&uot;As the Alcoa world expands around the globe, so too does our grantmaking,&uot; said Buechel. &uot;We intend to extend our reach, resources and relationships to keep pace with Alcoa's continued growth.&uot;

Category Funding

Overall, the Foundation funds primarily in the categories of education, health and human services, culture and the arts, and civic and community improvements. In 1999, Alcoa Foundation awarded grants in the following categories:

- Education-$7.96 million, or 44% of total grants - Health and Human Services-$6.01 million, or 34% of total grants - Civic and Community Improvements-$2.66 million, or 15% of total

grants - Culture and the Arts-$1.31 million, or 7% of total grants.

Local Grant Highlights

In Pittsburgh, Alcoa Foundation continued its significant funding in education, health, community and cultural programs, with grants to more than 150 non-profit organizations.

In 1999 the Foundation launched Allegheny Works on Pittsburgh's Northside. Based on community input and need, this unique grant program is designed to improve literacy and job training through grassroots and established community outreach programs. A community advisory board made up of civic, education and religious leaders makes grant recommendation to the Foundation. Alcoa Foundation has committed $1 million to Allegheny Works over five years.

1999 also marked the launch of a first-of-its-kind retail venture, seeded by Alcoa Foundation, with the Boys and Girls Club of Western Pennsylvania. A group of teenagers from Pittsburgh's Lawrenceville neighborhood opened a retail outlet selling everything from clothing to jewelry to stationery and seasonal items. The youth refurbished the building housing the store, and handle all buying, inventory, and other management aspects. Profits from the store go toward college funds for the teens.

Alcoa Foundation is highlighting the Boys and Girls Club story on Alcoa's worldwide web site in an effort to promote best practices in grant making, and to inspire others to devote creative resources to encouraging young people to prepare for work, according to Buechel.

&uot;We're hoping to apply what we've learned from this effort and others, with non-profits as well as our colleagues in grant making from around the world,&uot; Buechel said. &uot;Problems in Pittsburgh or Pocos de Caldas, Brazil can be remarkably similar. Innovation in one community can spark a new, useful approach in another.&uot;

About Alcoa Foundation

Established in 1952, Alcoa Foundation is a global resource that actively invests in improving the quality of life in more than 20 countries around the world where Alcoa operates. Its mission is to enhance and strengthen educational opportunities, health and human services and cultural endeavors for people in Alcoa locations worldwide. For more information about Alcoa Foundation, visit Alcoa's web site at www.alcoa.com under &uot;Getting To Know Alcoa.&uot;