Alcoa-CITIC Joint Venture Inaugurated; Foundation for Global Expansion in Flat Rolled Aluminum Products.

BEIJING & NEW YORK -- A significant milestone was reached today for Alcoa's (NYSE:AA) growth in China with the official inauguration of Alcoa's new joint venture with China International Trust & Investment (CITIC), its equity partner in Alcoa Bohai Aluminum Industries Company Limited, to produce aluminum rolled products at the Bohai plant in Qinghuangdao, China. Alcoa is the managing partner in the new venture, holding a 73% stake. This investment lays the foundation for Alcoa's global flat-rolled products growth strategy in China, with a focus on high value added products.

During the opening ceremonies that took place today at the Great Hall of the People in Beijing, Joseph C. Muscari, Alcoa Executive Vice President and Group President - Rigid Packaging, Foil and Asia said, "CITIC's vision for their investment in the 1980s and 1990s was to build an aluminum rolling plant that would be globally competitive in technology, cost and quality. This vision is now a reality. Alcoa Bohai Aluminum Industries Company and Alcoa's technology will build a plant that will be state-of-the-art and at the forefront of world aluminum rolling mills."

Alcoa plans to invest over $200 million in a major expansion of the facility, which includes a technologically advanced hot rolling mill and related equipment. Alcoa anticipates having the mill commissioned by 2008 with output growing to more than 220,000 metric tons per year (mtpy).

The new expanded facility will produce high value added products that are essential to support the rapidly growing Chinese economy and will add significantly to the value of primary aluminum products in China. These include lithographic sheet, brazing sheet, can sheet, and foil.

Alcoa will be the first global supplier of high quality lithographic sheet to have a local production presence in China, which will complement its North American and European lithographic sheet capability, Muscari said.

Today, Alcoa Bohai is the largest foil producer in China with an output of 50,000 mtpy with expected growth to 70,000 mtpy. Alcoa Bohai supplies customers throughout China with foil as well as exports 40% of its product. This complements Alcoa's wholly owned subsidiary Alcoa Shanghai Aluminum Products (ASAP), which produces 30,000 mtpy of foil for domestic and export customers in the pharmaceutical and packaging markets as well as the architectural products area.

Beyond flat-rolled products, Alcoa is exploring opportunities in China in other product areas, including hard alloy extrusions, automotive components, packaging, and primary aluminum.

Alcoa currently has 13 operating locations in China serving both the domestic and export markets.

The Alcoa and CITIC joint venture Bohai Aluminum was formed in 1995. To learn more about Alcoa in China visit, http://www.alcoa.com/china/en/home.asp

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