Alcoa Announces Dividend and Stock Contribution to Pension Plans

January 25, 2010

NEW YORK–The Board of Directors of Alcoa (NYSE:AA) declared (a) a quarterly
common stock dividend of 3 cents per share payable February 25, 2010 to
shareholders of record at the close of business on February 5, 2010 and
(b) a quarterly dividend of 93.75 cents per share on Alcoa’s $3.75
cumulative preferred stock payable April 1, 2010 to shareholders of
record at the close of business on March 12, 2010. Alcoa has paid a
quarterly dividend on its common stock for more than 60 years.

In addition, a contribution was authorized of up to $600 million in
Alcoa common stock to the company’s defined benefit pension plans. The
company expects to complete the contribution in the first quarter of
2010. The stock contribution will improve the funded status of Alcoa’s
pension plans and provide financial flexibility.

About Alcoa

Alcoa is the world leader in the production and management of primary
aluminum, fabricated aluminum and alumina combined, through its active
and growing participation 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 including
flat-rolled products, hard alloy extrusions, and forgings, Alcoa also
markets Alcoa® wheels, fastening systems, precision and investment
castings, and building systems. The Company has been named one of the
top most sustainable corporations in the world at the World Economic
Forum in Davos, Switzerland and has been a member of the Dow Jones
Sustainability Index for eight consecutive years. Alcoa employs
approximately 63,000 people in 31 countries across the world. More
information can be found at

Forward-Looking Statements

Certain statements in this release relate to future events and
expectations and, as such, constitute forward-looking statements
involving known and unknown risks and uncertainties that may cause
actual results, performance or achievements of Alcoa to be different
from those expressed or implied in the forward-looking statements. These
statements can be identified by the use of predictive, future-tense or
forward-looking terminology, such as “expects,” “intends,” “may,”
“should,” “will” or other similar words. Alcoa disclaims any obligation
to update publicly any forward-looking statements except as required by
applicable law. Important factors that could cause actual results to
differ materially from those in the forward-looking statements include:
(a) material adverse changes in economic or aluminum industry conditions
generally, including global supply and demand conditions and
fluctuations in London Metal Exchange-based prices for primary aluminum,
alumina and other products; (b) risks related to the assumptions used by
Alcoa in its estimates of liabilities and expenses for pension benefits,
including the rate of return on plan assets, the rate used to discount
the future estimated liability, and assumptions relating to the employee
workforce; (c) the inability to realize expected benefits from the stock
contribution as planned or to complete the transaction within the
targeted timeframe; and (d) the other risk factors summarized in Alcoa’s
Form 10-K for the year ended December 31, 2008, Forms 10-Q for the
quarters ended March 31, 2009, June 30, 2009 and September 30, 2009, and
other reports filed with the Securities and Exchange Commission.