Strong underlying aluminum fundamentals, Alcoa innovation driving profitable growth

NEW YORK--Alcoa (NYSE:AA) executives told investors today how the Company is powering value creation with twin growth engines: the miracle metal and innovation across the portfolio.

At the Company’s Investor Day in Davenport, Iowa, executives demonstrated how the Company is meeting aggressive three-to-five-year strategic goals. Alcoa is lowering its cost position in the upstream businesses to capture increased value from growing aluminum demand, while driving profitable growth in the mid- and downstream businesses through innovative products and unique partnerships.

“We see a very exciting future for our aluminum and other materials solutions as customers increasingly turn to Alcoa for innovative answers that differentiate them from their competitors,” said Alcoa Chairman and CEO Klaus Kleinfeld.

“Alcoa is uniquely positioned to participate in this growth. The integration of our talent, technology and world-class assets is unmatched in the industry and will power our business to historic levels of profitability.”

Executives outlined the unique strengths and major value drivers of their businesses, including:

Global Primary Products

• Continued market tightening in 2011, moving toward deficit in supply/demand balance
• World class assets delivering value: Juruti bauxite mine operating at 30 percent lower cost of production; Sao Luis at nameplate capacity
• Ma’aden Alcoa Project: lowest cost smelter online 2013, lowest cost refinery online 2014
• Centers of Excellence driving $520 million in productivity savings in 2011
• Improving cost curve position: targeting 23rd percentile in alumina, 41st percentile in aluminum by 2015
• Revenue growth through pricing actions: 40 percent of customers transitioned to alumina price index or spot pricing by end of 2012
• Delivering $150 per metric ton in incremental value added products versus P1020.

Global Rolled Products

• Reorganized for growth: market facing structure focused on customer partnerships and capturing emerging market growth
• Ma’aden Alcoa lowest cost rolling mill online in 2013
• Positioned to capture strong demand in growing aerospace and automotive segments
• Deploying world class technology to drive product growth across end markets
• Targeting approximately $2.5 billion in additional revenue by 2013; on track to achieve 60 percent of revenue goal in 2011

Engineered Products and Solutions

• Leading position in each business: 85% of sales from #1 or #2 market leaders
• Available capacity ready to deploy and strong focus on profitable growth
• Harnessing world-class technology to drive innovative customer solutions
• Targeting approximately $1.6 billion in additional revenue by 2013; on track to achieve 40 percent of revenue goal in 2011

The webcast of the event is available for replay and the presentations are archived at www.alcoa.com/investorday.

About Alcoa
Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum and 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 10 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 Statement
This release contains statements that relate to future events and expectations and, as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “estimates,” “expects,” “forecasts,” “outlook,” “plans,” “positioned,” “projects,” “should,” “targets,” “will,” or other words of similar meaning. All statements that reflect Alcoa’s expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements, including, without limitation, forecasts concerning global demand for aluminum, end market conditions, aluminum consumption rates, or other trend projections, targeted financial results or operating performance, and statements about Alcoa’s strategies, objectives, goals, targets, outlook, and business and financial prospects. Forward-looking statements are subject to a number of known and unknown risks, uncertainties, and other factors and are not guarantees of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: (a) material adverse changes in aluminum industry conditions, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices for primary aluminum, alumina, and other products, and fluctuations in indexed-based and spot prices for alumina; (b) global economic and financial market conditions generally, including the risk of another global economic downturn and uncertainties regarding the outcome or effects of sovereign debt issues or government intervention into the markets to address economic conditions; (c) unfavorable changes in the markets served by Alcoa, including automotive and commercial transportation, aerospace, building and construction, distribution, packaging, oil and gas, defense, and industrial gas turbine; (d) the impact of changes in foreign currency exchange rates on costs and results, particularly the Australian dollar, Brazilian real, Canadian dollar, and Euro; (e) increases in energy costs, including electricity, natural gas, and fuel oil, or the unavailability or interruption of energy supplies; (f) increases in the costs of other raw materials, including caustic soda or carbon products; (g) Alcoa’s inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of operations (including moving its refining and smelting businesses down on the industry cost curve and increasing revenues in its Flat-Rolled Products and Engineered Products and Solutions segments), anticipated from its productivity improvement, cash sustainability, and other initiatives; (h) Alcoa’s inability to realize expected benefits from newly constructed, expanded or acquired facilities or from international joint ventures as planned and by targeted completion dates, including the joint venture in Saudi Arabia or the upstream operations in Brazil; (i) political, economic, and regulatory risks in the countries in which Alcoa operates or sells products, including unfavorable changes in laws and governmental policies, civil unrest, and other events beyond Alcoa’s control; (j) the outcome of contingencies, including legal proceedings, government investigations, and environmental remediation; (k) the business or financial condition of key customers, suppliers, and business partners; (l) changes in tax rates or benefits; and (m) the other risk factors summarized in Alcoa’s Form 10-K for the year ended December 31, 2010, Forms 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011, and other reports filed with the Securities and Exchange Commission. Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.