PITTSBURGH & FJARDAAL, Iceland - Alcoa (NYSE:AA) announced today that it is contributing US$1.3 million to build a state-of-the-art sports facility in East Iceland that will revolutionize sporting opportunities in Reydarfjordur with a full-length football (soccer) field and a 100-meter track. The municipality of Fjardabyggd, which will own and operate the facility, is overseeing construction of the $6.4 million building, Fjardahollin, scheduled to open in the spring.

"As we progress with building the Alcoa Fjardaal aluminum smelter, we expect more people will relocate to this region," said Tomas Mar Sigurdsson, managing director, Alcoa Fjardaal. "Alcoa's donation for the sports facility will help the Fjardabyggd community prepare for this population increase as more and more families begin to call this area home. Our vision at Alcoa is to be the best company in the world, and we want to offer our best to the communities where we operate. We look forward to the opening of this sports facility and to all of the opportunities it can bring."

Alcoa's smelter project in Iceland will represent one of the largest private-sector investments in the country's history and one of the most modern aluminum production facilities in the world. It will generate numerous jobs, create additional jobs in supporting industries and service organizations, and assist with putting the economy in East Iceland on a more stable foundation. Alcoa Fjardaal, which is expected to start production in April 2007, will incorporate lessons and technology developed over the past 20 years to promote sustainability and minimize environmental impact.

The new sports facility will house a football (soccer) field with artificial grass, a 100 meter track with a jump pit, and a spectator area for 450 people. In addition, construction has begun on a new physical fitness center in Fjardabyggd, and Alcoa Fjardaal has agreed to support the cost of the lease. The center is scheduled to open to the public in late October.

Today's donation from Alcoa comes on the heels of a US$300,000 grant from Alcoa Foundation to the Leifur Eiriksson Foundation to advance scholarly exchanges between Iceland and the United States, which was announced earlier this week. In February, Alcoa Foundation also awarded a $75,000 grant to the Health Institute of East Iceland so it could purchase state-of-the-art equipment for x-ray processing.

About Alcoa
Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) foils and plastic wraps, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 131,000 employees in 43 countries and has been a member of the Dow Jones Industrial Average for 45 years and the Dow Jones Sustainability Indexes since 2001. More information can be found at www.alcoa.com

Note to Editors: There should be an umlaut over the "o" in "Reydarfjordur", "Fjardahollin" in the release, and also over the "o" "Hronn" in the contact information. Also, there should be an accent over the third "a" in "Fjardaal", and the "o" in "Tomas", the "a" in "Mar" in the release, and over the "e" and the "o" in "Petursdottir" in the contact information.

Alcoa Inc.

Alcoa Inc.

Alcoa (NYSE:AA) is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap® foils and plastic wraps, Alcoa® wheels, and Baco® household wraps. Among its other businesses are closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 129,000 employees in 44 countries and has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com

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