Alcoa Reaches Power Agreement to Improve Competitiveness of Intalco Smelter

May 2, 2016

Lightweight metals leader Alcoa (NYSE:AA) today announced it has reached
an agreement with the Bonneville Power Administration (BPA) that will
help improve the competitiveness of its Intalco smelter. As a result,
the smelter will not curtail at the end of the second quarter as
previously announced by the Company.

The amendment to the power contract is effective July 1, 2016 through
Feb. 14, 2018 and provides for additional access to market power during
this period.

This short-term amendment with BPA, combined with the state of
Washington’s $3 million budget proviso for workforce training, are key
factors in helping Intalco remain competitive. Alcoa thanks Governor
Inslee; its federal delegation led by Senators Murray and Cantwell, and
Representatives DelBene and Larsen; the state legislative delegation led
by Senators Ranker and Ericksen; and BPA for their support.

Intalco Works, located in Washington State, has a capacity of 279,000
metric tons per year.

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 approximately 58,000 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 the competitiveness
of the Intalco smelter. 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 and aluminum businesses down on the
industry cost curves and increasing revenues and improving margins in
its value-add businesses); (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) the outcome of
contingencies, including legal proceedings and environmental
remediation; (f) deterioration in global economic and financial market
conditions generally; and (g) the other risk factors summarized in
Alcoa’s Form 10-K for the year ended December 31, 2015, 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.

Matthew Garth, 212-836-2714
Sofina Mirza-Reid, 212-836-2720