Alcoa Reaches Tentative Agreement on Power Contract for Intalco Works

Alcoa (NYSE:AA) today announced that it has reached a tentative
agreement on a long-term power contract with Bonneville Power
Administration (BPA) for its Intalco Works aluminum smelter in Ferndale,
Washington.

The proposed contract, which runs through September 2022, will ensure
power supply for the smelter and help sustain the economic impact the
plant brings to the region. A 90-day extension to the current contract
will be in place while a public comment process on the new contract is
conducted, followed by a review by BPA.

'We are pleased to be one step closer to long-term power security for
Intalco Works, an important manufacturing operation in the northwest
United States,? said U.S. Primary Products President Bob Wilt. 'We want
to thank our employees, elected officials and BPA for helping us get to
this point in the process.?

The contract is expected to be finalized by early December.

Intalco Works started operations in 1966 and is currently running 576
smelting pots. The operation restarted half a potline in March of 2011,
increasing its workforce by 88 employees. Along with 625 family wage
jobs created at Intalco, the operation supports approximately $118
million in personal income in Whatcom County, $5 million in local taxes,
$240,000 in annual charitable contributions and thousands of hours
volunteered each year by Alcoa employees.

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 eleven 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 31 countries across the world. More information can be found at www.alcoa.com.

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,? 'expect,? '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. 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; (b) ?deterioration in
global economic and financial market conditions generally, or
unfavorable changes in the markets served by Alcoa; (c) increases in
energy costs or the unavailability or interruption of energy supplies;
(d) the inability to extend energy contracts upon expiration, to
negotiate new arrangements on cost-effective terms, or to obtain the
necessary approvals for such arrangements by expected completion dates;
(e) Alcoa′s inability to achieve the level of revenue growth, cash
generation, cost savings, improvement in profitability and margins,
fiscal discipline, or strengthening of competitiveness anticipated from
its restructuring and modernization programs and productivity
improvement, cash sustainability, repowering, technology, and other
initiatives; and (f) ?the other risk factors summarized in Alcoa′s Form
10-K for the year ended December ?31, 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.

Alcoa

Investor Contact

Kelly Pasterick, 212-836-2674

or

Media
Contact

Josh Wilund, 360-384-7316