Alcoa Packaging and Consumer Group Strategically Aligns Businesses; Aims to Accelerate Growth Through Innovation, Product Development.

PITTSBURGH -- Alcoa (NYSE:AA) announced today a new strategic alignment for its Alcoa Packaging and Consumer group that focuses its businesses on accelerating growth through new product innovation, operational excellence, enhanced customer connections and leveraged shared services.

The formation of a new, world-class innovation, research and development group, which will collaborate with customers and Alcoa businesses to develop new products, is a key component in the realignment to energize growth initiatives. Complementing this is a strategic move to separate businesses units from manufacturing, enabling the businesses to focus on customers, new products and market development, while the manufacturing organization drives for operational excellence.

Rounding out the new design is a group shared services approach to supply chain and logistics that will leverage synergies across the business units, and enhance customer connections. In addition, centers of excellence will be established in other transactional and business support systems to capture efficiencies and better align the organization to meet customer needs.

"This is a challenging but exciting time for our Packaging and Consumer businesses," said Alain Belda, Chairman and CEO, Alcoa. "Our focus is to better serve our customers through operational excellence and growth, and this strategic realignment emphasizes this firm commitment to packaging."

A re-aligned, channel-driven business unit structure includes:

--A newly created Alcoa Packaging business, which will focus on total packaging solutions in growing market segments such as medical, pharmaceutical, healthcare, food, electronics and film products headed by Bimal Kalvani.

--A refocused Reynolds Food Packaging business, which will combine the strengths of Alcoa's thermoforming sheet and food packaging businesses to better serve the foodservice industry, including foodservice distributors, processors, agriculture, bakeries and restaurants headed by Rebecca Liebert.

--Alcoa Consumer Products, which will continue to focus on private label and branded offerings, such as Reynolds Wrap(R), in the wraps and bags market with its retail channels including grocery, club, mass, drug and dollar stores.

--Alcoa Closure Systems International (CSI), which will continue to operate in its current beverage markets while pursuing adjacent markets with an integrated commercial and manufacturing structure.

Searches are underway for leaders of Alcoa Consumer Products and Alcoa CSI, and announcements will be forthcoming.

"Our new strategy will provide Packaging and Consumer customers with a greater understanding of the breadth and depth of services, expertise and experience that Alcoa has to offer," said Ruth J. Mack, Vice President, Alcoa and Group President, Packaging and Consumer. "As we focus on growth opportunities and operational excellence, we expect our customers will benefit by enhanced customer connections and innovative packaging solutions."

The Alcoa Packaging and Consumer group offers closure and capping systems, containers, packaging materials, films and wraps, including Reynolds Wrap(R) foils and plastic wraps and Baco(R) household wraps. In addition, Alcoa provides solutions ranging from film, containers, lids, shrink sleeves, bags and baking cups. In 2004, Packaging and Consumer generated $6 billion in revenue across these businesses as well as Alcoa Rigid Packaging, which supplies the sheet for 100 billion aluminum cans each year.

About Alcoa

Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, 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 to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) foils and plastic wraps, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 131,000 employees in 43 countries and has been named one of the top three most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com