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ALUMAX INC. SPUN OFF AS STAND-ALONE COMPANY

 NEW YORK, Nov. 15 /PRNewswire/ -- Alumax Inc., the third largest U.S. producer of aluminum, was spun off today as an independent, stand- alone company.
 Alumax shares will trade on the New York Stock Exchange under the symbol ALM.
 The spin-off was part of a merger transaction between AMAX Inc. (NYSE: AMX), AlumaxUs former parent, and Cyprus Minerals Company. The transaction, completed this morning, involved the spin-off to AMAX shareholders of Alumax, distribution by AMAX of 28 percent of the stock of Amax Gold Inc., and the merger of the balance of AMAX's assets with Cyprus Minerals to create a new Cyprus Amax Minerals Company.
 The Alumax distribution is tax-free with AMAX shareholders receiving one Alumax share for each two AMAX shares they held. Under terms of the agreement, each AMAX share is also being exchanged, tax-free, for one-half of a Cyprus share. AMAX shareholders also receive 0.2455 of a share of Amax Gold stock for each AMAX share held. That distribution is taxable to shareholders. The record date for the distributions and the merger exchange for AMAX shareholders was Nov. 12.
 A third of AMAX Series A convertible stock is being transformed into a new Alumax convertible preferred issue and the other two-thirds is being changed into a new issue of Cyprus Amax preferred.
 The newly spun off Alumax is the nation's third largest aluminum company with assets of $2.7 billion and 1992 revenue of $2.4 billion. Alumax is a low-cost producer of primary aluminum ingot and billet and a major fabricator of value-added aluminum and other products for the architectural, automotive, transportation, packaging and consumer products industries. Alumax employs 14,000 people and is headquartered in Norcross, Ga.
 Allen Born, former chairman and chief executive officer of AMAX Inc., has been named chairman and chief executive officer of Alumax. Other members of the new Alumax board are Harold Brown, Pierre Des Marais II, Anthony P. Gammie, James C. Huntington Jr., Thomas G. Labrecque, W. Loeber Landau and Paul W. MacAvoy. V. Bond Evans continues as president and becomes chief operating officer of Alumax.
 "The new Alumax," Born said, "is a pure aluminum play with the most modern and lowest-cost facilities in its industry. We've put in a new risk management program to help us counter the financial problems created by low aluminum prices; we've given ourselves additional financial flexibility by establishing good credit facilities for Alumax and, in the negotiations, assigned some $135 million of mining investment interests to it."
 "Alumax has low primary costs, a profitable downstream business and new proprietary products which position it for dramatic growth as world prices firm up," he said.
 -0- 11/15/93
 /CONTACT: Jerry Cooper, 212-856-5982, or Dan Loh, 212-856-6007/
 (AMX)


CO: Alumax Inc. ST: IN: MNG SU:

CK -- NY085 -- 4570 11/15/93 15:02 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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