COMMONWEALTH ALUMINUM SIGNS NEW THREE-YEAR CONTRACT WITH UNITED STEEL WORKERS.

LOUISVILLE, Ky.--(BUSINESS WIRE)--May 9, 1995--Commonwealth Aluminum Corporation (Nasdaq/NM:CALC) today announced that it has signed a new three-year labor agreement with the United Steel Workers of America, Local 7325. The new agreement, which goes into effect immediately and extends through July 31, 1998, covers approximately 700 of the more than 1,000 people employed at the Company's facility in Lewisport, Kentucky. The Company's current collective bargaining agreement will expire on July 31, 1995.

"Our ability to negotiate and sign this agreement early is a clear indication of the good working relationship and the spirit of cooperation that exists between the Company and the United Steel Workers," commented Mark V. Kaminski, President of Commonwealth Aluminum. "Teamwork between labor and management has been an important element in our success over the duration of the current contract. We increased shipments 62% in 1994 compared with 1991, and we have worked together to bring costs down and improve efficiency. The ongoing commitment of our employees provides a solid foundation as we work to continue this progress and to achieve the objectives of our current three-year business plan covering 1995-97, which includes a 27% overall increase in volume in 1997 compared with 1994."

United Steel Workers Local President Joe Saalwaechter added, "We are very pleased to conclude these negotiations so quickly because it helps ensure employment stability for our members. Local 7325 employees have played an important role in the growth and prosperity of Commonwealth Aluminum. We believe that this extends the relationship we have built with management since the successful 1992 negotiations, which also resulted in an early agreement."

Scott T. Davis, Vice President and General Manager-Operations in Lewisport, said, "To me, the most important aspect of this agreement is the fact that our service to customers will remain uninterrupted. We have developed a strong reputation among customers for quality products and on-time deliveries, with 95% of our orders completed on schedule in the first quarter of 1995. The fact that we came to agreement ahead of schedule is a testament to both management and labor, and it means there will be no downtime or delays for our customers because of a work stoppage."

Under the terms of the agreement, average hourly base wages are set to increase a total of 4.6% over the next three years. An important aspect of compensation under this new agreement will be the continuation of the successful gain-sharing program that began in 1992. Local President Joe Saalwaechter stated, "With its unique structure, gain sharing provides our members with the same incentives as management, so we all participate equally in the Company's success." According to Saalwaechter, other highlights of the new contract include improved pensions, an early retirement plan and maintenance of the high level of health care coverage for those in the managed care network.

Commonwealth Aluminum is one of North America's leading manufacturers of aluminum sheet for the transportation, construction and consumer durables end-use markets. The Company manufactures a variety of common alloy products in the form of aluminum sheet at its rolling mill in Lewisport, Kentucky, one of the largest multi-purpose aluminum rolling mills in North America.

CONTACT: Commonwealth Aluminum Corporation, Louisville

Mark V. Kaminski, 502/589-8125