Alcoa and GCC/IBT Reach Labor Agreement.

RICHMOND, Va. -- Alcoa Packaging and the Graphic Communications Conference of the International Brotherhood of Teamsters (GCC/IBT) have reached an agreement on a new 3-year labor contract covering approximately 308 Alcoans at the company's Bellwood Printing Plant in Chesterfield County, Virginia.

The new agreement, ratified by GCC/IBT members on Sunday, November 5, 2006, addresses key issues identified by both sides during negotiations which began in September. The agreement creates a framework that:

* Preserves the current standard of living for current employees through a competitive wage and benefits package;

* Includes a health care plan that has cost sharing similar to other Alcoa locations; and

* Gives the flexibility to make decisions together with the GCC/IBT that can make the facility more competitive, which improves employment security for all.

About Alcoa Packaging

Alcoa Packaging, based in Richmond, Virginia, manufactures a variety of packaging materials including extrusion and adhesive laminated pouch materials, overwraps and linerstock, blister lidding foil, thermoformed trays, cable wrap, plastic shrink sleeve body labels, shrink film and laminated foil. These packaging materials serve the world's leading consumer products manufacturers within the pharmaceutical, medical, food & beverage, and industrial markets.

About Alcoa

Alcoa (NYSE:AA) 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 closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 129,000 employees in 43 countries and has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com