The businesses to be sold had 2008 combined revenues of 1

Alcoa continued to make progress on its re-powering strategy and has finalizedand signed agreements to supply power through 2040 to three smelters in Quebecthat will benefit approximately 25 of the Companys smelting production. Nearly80 of the Companys capacity is now covered by re-powering agreements and selfgeneration through 2025 and the Company is aggressively pursuing other effortsacross its portfolio. Alcoa will receive Orklas 50 percent stake in Elkem Aluminum andOrkla will receive Alcoas 45 percent stake in the SAPA extrusion profilesbusiness. Elkem Aluminum, which will be 100 percent owned by Alcoa following thetransaction, includes aluminum smelters in Lista and Mosjoen, Norway with acombined output of 282,000 metric tons per year (mtpy).

Included in thetransaction is Elkems stake in a newly opened anode plant in Mosjoen in whichAlcoa already holds an approximate 82 percent stake. The businesses to be sold had 2008 combined revenues of $1.8 billion andan estimated after-tax operating loss of approximately $105 million. Thebusinesses employ a combined 22,600 people at 38 locations. Capital Expenditures and LiquidityBuilding on the previously announced initiative to conserve cash and suspend theCompanys share repurchase program, the Company is stopping all non-criticalcapital investment. Capital spending includes approximately $750 million forthe completion of key Brazilian growth projects. The Sao Luis refinery expansionand the greenfield Juruti bauxite mine are scheduled to be finished in the firsthalf of 2009.

ImpactTotal charges for the 4th quarter 2008 due to restructuring, impairment andother special charges are expected to be between $900 and $950 million aftertax, or $1.13 to $1.19 per share, of which approximately 80 percent is non-cash.The restructuring and divestiture program is expected to save approximately $450millionbefore taxes on an annualized basis. "Because we recently completed an extensive competitive analysis, including astrategic review of each business, we have been able to quickly identify andimplement effective responses that strengthen our market competitiveness andfinancial staying power in the economic downturn. We will continue to monitorthe dynamic market situation to ensure that we adjust capacity to meet anyfuture changes in demand and seize new opportunities that emerge. Note: Detailed actions by segment and businesses are covered in the attachedappendix.