Alcoa Announces Dividend and Stock Contribution to Pension Plans

January 21, 2011

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, 2011 to
shareholders of record at the close of business on February 4, 2011 and
(b) a quarterly dividend of 93.75 cents per share on Alcoa’s $3.75
cumulative preferred stock payable April 1, 2011 to shareholders of
record at the close of business on March 11, 2011.

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
2011. The stock contribution will improve the funded status of Alcoa’s
pension plans and provide financial flexibility. The company will make
additional cash contributions of approximately $300 million in 2011 to
improve the funded status of its plans.

The shares of common stock to be contributed to the pension plans will
not be registered under the Securities Act of 1933, as amended, or any
state securities laws at the time of contribution and may not be offered
or sold in the United States absent registration or an applicable
exemption from registration requirements. This press release does not
constitute an offer of any securities for sale or a solicitation of an
offer to purchase or sell any securities.

About Alcoa

Alcoa is the world’s leading producer of primary and fabricated
aluminum, as well as the world’s largest miner of bauxite and refiner of
alumina. In addition to inventing the
modern-day aluminum industry, Alcoa innovation has been behind major
milestones in the aerospace, automotive, packaging, building and
construction, commercial transportation, consumer electronics and
industrial markets over the past 120 years. Among the solutions Alcoa
markets are flat-rolled products, hard alloy extrusions, and forgings,
as well as Alcoa® wheels, fastening systems, precision and investment
castings, and building systems in addition to its expertise in other
light metals such as titanium and nickel-based super alloys.
Sustainability is an integral part of Alcoa’s operating practices and
the product design and engineering it provides to customers. Alcoa has
been a member of the Dow Jones Sustainability Index for nine consecutive
years and approximately 75 percent of all of the aluminum ever produced
since 1888 is still in active use today. Alcoa employs approximately
59,000 people in 31 countries across the world. More information can be
found at www.alcoa.com.

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 intention
or obligation (other than as required by law) to update or revise any
forward-looking statements. 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,
2009, Forms 10-Q for the quarters ended March 31, 2010, June 30, 2010
and September 30, 2010, and other reports filed with the Securities and
Exchange Commission.