Released on Wednesday, April 25, 2007

Alcoa, Pittsburgh, Pa., announced it will explore strategic alternatives involving its automotive castings and electronics businesses.

The two groups had combined 2006 revenues of approximately $1.6 billion and were marginally profitable.

“While there can be no assurance that exploration of alternatives will result in any type of transaction, this initiative should unlock the value in these businesses,” said Belda.

The exploration of market value, which may end in a sale, comes in conjunction with analysis of Alcoa’s packaging and consumer segment which generated approximately $3.2 billion in revenues and $95 million in after-tax operating income in 2006, representing approximately 10% of 2006 revenues and approximately 3% of after-tax operating income.

“Now is the right time for us to explore whether these businesses may provide more value on their own or as part of another company,” said Alain Belda, Alcoa Chairman and CEO.

“We are in an enviable position with our other downstream businesses,” Belda said. “The group of assets in our Flat Rolled Products segment is without question the best in the world, as are our hard alloy extrusions, forgings, fasteners, investment castings, structures and building systems. Our proprietary technology and unique equipment set us apart from anyone else in the world in these areas.”

The company anticipates the exploration process will be completed by the end of 2007.