Alcoa to Further Expand North American Automotive Sheet Capacity

Alcoa (NYSE:AA) today announced a second major North American expansion
to meet the growing demand for light, durable and recyclable aluminum
sheet for automotive production.

Alcoa will invest $275 million over the next three years to expand and
convert capacity at its rolling mill in Alcoa, Tenn., to support
automotive producers′ plans to use more aluminum sheet to increase fuel
efficiency, safety, durability and performance of cars and light trucks.
Alcoa previously announced a $300 million expansion of its Davenport,
Iowa plant which is set to be completed by the end of this year.

'Our Tennessee expansion is a great example of how Alcoa′s edge in
technology and innovation is capturing growth opportunities in our
value-added mid- and downstream businesses,? said Alcoa Chairman and
CEO, Klaus Kleinfeld. 'More and more auto producers are turning to
aluminum to increase the fuel efficiency and quality of their vehicles ?
we anticipate a quadrupling of auto sheet volume by 2015 and a tenfold
increase by 2025.

'It is particularly gratifying to make this investment in our namesake
community this year, which is both the 100^th anniversary of
our Tennessee operations as well as the 125^th anniversary of
Alcoa,? added Kleinfeld. 'We have a very dedicated and highly engaged
workforce in Tennessee and a very supportive community.?

The Alcoa, Tenn., expansion will add 200 full-time, high-value jobs upon
completion. In addition, more than 400 jobs will be created during the
construction phase of the expansion. The project will convert some of
the plant′s can sheet capacity to high-strength automotive aluminum
capacity, as well as install incremental automotive capacity. The
Tennessee expansion is scheduled to begin this month and be completed by
mid-2015. When completed, the plant will be a key supplier to both the
packaging and automotive markets. Much of the volume for the automotive
expansion is already secured under long-term supply agreements.

'I want to thank Alcoa for its additional investment in East Tennessee
and for 100 years of incredible service in Blount County,' Tennessee
Gov. Bill Haslam said. 'Our Jobs4TN strategy identifies key industry
clusters where Tennessee holds a unique competitive advantage, and we
are grateful Alcoa is expanding its presence and joining in our state's
continued growth in the automotive sector. This is another step toward
Tennessee becoming the No. 1 state in the Southeast for high quality
jobs, and adding these jobs is a great way to celebrate an anniversary.'

The project will incorporate, through Alcoa′s supply chain, the
proprietary 'Alcoa
951? pre-treatment bonding technology which enables adhesive bonding
of automotive structures and is facilitating more cost-effective, mass
production of aluminum intensive vehicles (AIVs). The Alcoa technology
has become the new pre-treatment bonding standard for aluminum sheet,
extrusion and casting suppliers across the automotive industry. Alcoa is
licensing the technology to the industry at the request of auto OEMs.

'Our technology solutions are helping to drive the continued penetration
of aluminum into the automotive market,? said Dr. Ray Kilmer, Alcoa
Executive Vice President and Chief Technology Officer. 'We are enabling
not just increased penetration, but we are working with OEMs to do it
cost effectively in high-volume automotive applications which, in turn,
necessitates our automotive expansions.?

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 125 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 11 consecutive years and approximately 75
percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 61,000 people in 30
countries across the world. For more information, visit www.alcoa.com
and follow @Alcoa on Twitter at twitter.com/Alcoa and follow Alcoa on
Facebook at www.facebook.com/Alcoa.

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
'anticipate,? 'estimate,? 'expect,? 'plan,? '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, forecasts concerning global demand growth for
aluminum, end market conditions, growth opportunities for aluminum in
automotive, commercial transportation, packaging, aerospace and other
applications, targeted financial results or operating performance, and
statements about Alcoa′s strategies, 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) deterioration in global
economic and financial market conditions generally; (c) unfavorable
changes in the markets served by Alcoa; (d) Alcoa′s inability to
successfully develop and implement technologies or to realize expected
benefits from its productivity, cash sustainability and other
initiatives; (e) Alcoa′s inability to successfully realize the goals
established in each of its four 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 in its Global Rolled Products and Engineered
Products and Solutions segments); (f) ?Alcoa′s inability to complete or
to realize expected benefits from its growth projects, including
expansion of its North American automotive sheet capacity, as planned
and by targeted completion dates; (g) the business or financial
condition of key customers, suppliers, and business partners; (h)
political, economic, and regulatory risks in the countries in which
Alcoa operates or sells products, including unfavorable changes in laws
and governmental policies; (i) the outcome of contingencies, including
legal proceedings, government investigations, and environmental
remediation; and (j) the other risk factors summarized in Alcoa′s Form
10-K for the year ended December 31, 2012, Form 10-Q for the quarter
ended March 31, 2013, 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.

Alcoa

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