Fitch Ratings Affirms Ratings of Alcan, Inc.

Business Editors

CHICAGO--(BUSINESS WIRE)--July 19, 2002

Fitch Ratings has affirmed the senior unsecured ratings of Alcan, Inc. at 'A', the company's preference stock at 'A-' and the commercial paper ratings of Alcan Aluminum Corporation at 'F1'. The Rating Outlook is Stable. Alcan Inc. guarantees commercial paper issued by Alcan Aluminum.

Alcan Inc., the second largest aluminum producer in the world, continues to weather through a drought in price relief for commodity aluminum. The good news is that order volumes are up and costs are down. Smelters are setting production levels as the company takes advantage of its electrical generation abilities (65% of requirements and 40% of production costs) and gains market share while still turning a profit. Alcan continues to focus on cost reduction (as well as debt reduction) and has been re-deploying its assets into lower cost production facilities (its acquisition of the Gove alumina refinery and bauxite mine in the first quarter of 2001 and its 20% interest in Alouette smelter this past quarter) while pruning marginal return businesses. Capital expenditures are under a good deal of scrutiny and are budgeted short of depreciation and amortization, while working capital is being tightly managed. The company has one of the strongest balance sheets in the industry and is well poised to benefit from a turn in aluminum prices.