KNOXVILLE, TN - December 6, 2007 - Alcoa (NYSE:AA) announced today that it has broken ground on a new $22 million project at its Can Reclamation facility at its Tennessee Operations. Improvements include a new crusher and delacquering furnace and supporting building enclosures, utilities and environmental systems.

"This is an investment in our recycling capability. Alcoa is a leader in aluminum scrap processing technology, and this upgrade will help increase capacity using state-of-the-art environmental and fuel efficiency technologies as well as support future flexibility to process other aluminum scrap types," said Greg Wittbecker, Alcoa Director Corporate Metal Recycling Strategy.

Implementation of this project will increase UBC (used beverage can) molten output capacity by nearly 50%. Recycling aluminum saves 95% of the energy needed to make new cans; it can be recycled over and over again, resulting in significant energy savings and emission reductions.

Alcoa projects it will recycle nearly 14 billion aluminum cans in 2007. The Can Reclamation project is expected to be completed over the next 12 to 18 months.

Separately, Alcoa introduced its new, fuel efficient locomotive for Tennessee, dubbed "Big Orange," because of its orange and white checkerboard, which will be used to transport aluminum ingot. The new train has 25% more horsepower, uses 35% less fuel, and cuts down on 85% of air pollutants. It also has the latest technological advances, such as interlock brakes for automatic stops, horns and lights that are automatic, a GPS system, and speeds that can be set like cruise control. A second locomotive is expected to arrive at Tennessee Operations in 2008.

About Tennessee Operations

Alcoa's Tennessee Operations is the world's largest producer of rolled aluminum can sheet for beverage cans and is based in Blount County, Tennessee. Tennessee Operations employs more than 1,800 at its smelting and fabrication plant in Blount County, its hydropower facilities, and its downtown Knoxville office.

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 including flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa® wheels, fastening systems, precision and investment castings, structures and building systems. The company has 116,000 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.

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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