Alcoa Reaches Agreement with New York State to Increase Competitiveness of Massena West Smelter

November 24, 2015

Company continues to strengthen Upstream and improve cost position

Lightweight metals leader Alcoa (NYSE:AA) today announced that it has
entered into a three-and-a-half year agreement with New York State to
increase the competitiveness of the Massena West smelter. The Company
had previously announced plans to curtail the facility amid prevailing
market conditions. The agreement will help maintain hundreds of jobs in
New York’s North Country, improve the cost position of the smelter and
support growth projects for the casthouse.

“Senator Schumer and Governor Cuomo have been tremendous allies for
Alcoa’s Massena operations for many years and we thank them for their
continued support,” said Chairman and Chief Executive Officer Klaus
Kleinfeld. “Today’s agreement helps better position the smelter in light
of prevailing market conditions, providing this facility a bridge to a
stronger commodity market and maintaining jobs in the North Country. We
remain focused on ensuring our Upstream business is well-positioned to
succeed throughout the cycle.”

New York State’s incentive package will help maintain approximately 600
jobs at the Massena West facility through the term of the agreement. The
plant has 130,000 metric tons of smelting capacity.

With the Midwest transaction aluminum price down 30 percent
year-to-date, Alcoa will continue with its other previously announced
curtailments of uncompetitive smelting and refining capacity. Once the
curtailments are complete, Alcoa’s smelting capacity will be reduced by
373,000 metric tons. The reductions will further improve the cost
position of the Upstream business and ensure competitiveness in a lower
pricing environment.

Alcoa has been aggressively reshaping its Upstream portfolio as part of
a successful multi-year strategy to position itself as a low-cost global
leader in alumina and aluminum production. The Company is on track to
meet its 38th percentile target on the global aluminum cash
cost curve in 2016.

Revised total restructuring-related charges in the fourth quarter of
2015 associated with actions announced in November will be between $130
million and $150 million after-tax, or $0.10 to $0.11 per share, of
which approximately 40 percent would be non-cash.

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 more than 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,
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Forward-Looking Statements

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,” “goal,” “plans,” “should,” “target,” “will,”
“would,” 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, statements regarding Alcoa’s goal to
create a globally competitive Upstream business and the expected
financial impact of the curtailments. Forward-looking statements are
subject to 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 and
premiums, as applicable, for primary aluminum, alumina, and other
products, and fluctuations in indexed-based and spot prices for alumina;
(b) Alcoa’s inability to successfully realize goals established in each
of its business segments, at the levels or by the dates targeted for
such goals (including moving its alumina refining and aluminum smelting
businesses down on the industry cost curves and increasing revenues and
improving margins in its Global Rolled Products, Engineered Products and
Solutions, and Transportation and Construction Solutions segments); (c)
Alcoa’s inability to realize expected benefits, in each case as planned
and by targeted completion dates, from acquisitions, divestitures,
facility closures, curtailments, or expansions, or international joint
ventures; (d) political, economic, and regulatory risks in the countries
in which Alcoa operates, including unfavorable changes in laws and
governmental policies, tax rates, civil unrest, or other events beyond
Alcoa’s control; (e) changes in preliminary accounting estimates due to
the significant judgments and assumptions required; (f) the outcome of
contingencies, including legal proceedings and environmental
remediation; and (g) the other risk factors summarized in Alcoa’s Form
10-K for the year ended December 31, 2014, 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.

Nahla Azmy, 212-836-2674
Sonya Elam Harden, 864-357-1258
Monica Orbe, 212-836-2632