Alcoa to Sell Ownership Stake in Mt. Holly Smelter to Century Aluminum

October 23, 2014

Sale consistent with Company strategy to lower the cost profile of its upstream portfolio

Alcoa (NYSE: AA) today announced that it has reached an agreement to
sell its ownership stake in the Mt. Holly aluminum smelter in Goose
Creek, South Carolina, to Century Aluminum Company for $67.5 million in
cash, plus an additional potential earn-out. Mt. Holly is owned 50.3
percent by Alcoa and 49.7 percent by Century.

“While Mt. Holly is a strong facility, its cost structure doesn’t match
Alcoa’s criteria for a low cost portfolio of upstream assets,” said Bob
Wilt, President, Alcoa Global Primary Products. “The sale will help
achieve Alcoa’s strategy to optimize its commodity portfolio, and
protect the facility’s jobs and economic contribution to the local
community. We would like to thank our community stakeholders and the
employees of Mt. Holly for their years of support.”

The smelter has the capacity to produce 229,000 metric tons of aluminum
annually and employs 500 people who will transition to Century as part
of the sale. The current power contract for the site expires in December
2015. The divestiture will reduce Alcoa’s global smelting capacity to
3.5 million metric tons per year.

The sale is subject to customary regulatory approvals, and is expected
to close by the end of the fourth quarter 2014. Based on current
estimates, the transaction will not result in a significant gain or loss
to Alcoa.

The sale is aligned with Alcoa’s strategy to create a globally
competitive commodity business and lower its position on the world
aluminum production cost curve to the 38th percentile by
2016. Including this announcement, Alcoa has curtailed, closed or sold
1.3 million metric tons, or 31 percent, of its highest cost global
smelting capacity since 2007.

About Alcoa
A global leader in lightweight metals
technology, engineering and manufacturing, Alcoa innovates
multi-material solutions that advance our world. Our technologies
enhance transportation, from automotive and commercial transport to air
and space travel, and improve industrial and consumer electronics
products. We enable smart buildings, sustainable food and beverage
packaging, high-performance defense vehicles across air, land and sea,
deeper oil and gas drilling and more efficient power generation. We
pioneered the aluminum industry over 125 years ago, and today, our
60,000 people in 30 countries deliver value-add products made
of titanium, nickel and aluminum, and produce best-in-class bauxite,
alumina and primary aluminum products. For more information, visit,
follow @Alcoa on Twitter at
and follow us on Facebook at

Forward-Looking Statements

This release contains statements that relate to future events and
expectations and, as such, constitute forward-looking statements.
Forward-looking statements include those containing such words as
“anticipates,” “expects,” “should,”“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, the
anticipated timing of the closing of the sale of the Mt. Holly smelter,
and statements regarding Alcoa’s goals and strategies. Forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those expressed or implied in
such statements. Risks and uncertainties include, among other things,
risks relating to the satisfaction of the conditions to closing the
transaction in the anticipated timeframe or at all; the ability to
realize anticipated benefits of the transaction; competitive
developments; Alcoa’s inability to successfully realize goals
established for its upstream commodity business, at the levels or by the
dates targeted for such goals (including lowering its position on the
world aluminum production cost curve); changes in preliminary accounting
estimates due to the significant judgments and assumptions required; and
the other risk factors discussed in Alcoa’s Form 10-K for the year ended
December 31, 2013, and other reports filed with the Securities and
Exchange Commission. Alcoa disclaims any intention or obligation to
update publicly any forward-looking statements, whether in response to
new information, future events or otherwise, except as required by
applicable law.

Investor Contact
Kelly Pasterick, + 1 212-836-2674
Media Contacts
Sonya Elam Harden, + 1 864-836-2078
Monica Orbe, + 1 212-836-2632