Alcoa Initiates Mandated Offer for Elkem; Pleased with Response to Increased Ownership

    PITTSBURGH & OSLO, Norway--Jan. 23, 2002--Alcoa announced today that it has initiated a legally mandated, unconditional cash tender offer for Elkem at 155 Norwegian kroner ($17.32) for each outstanding share. The tender offer will expire on February 22, 2002. Alcoa currently owns 40% of Elkem's 49,280,000 outstanding shares.
    Since crossing the 40% ownership threshold earlier this month, Alcoa has been in touch with Elkem's management, its union representatives, and government officials in Norway. "We are pleased with the response we have received to our increased ownership of Elkem," said Alain Belda, Chairman and CEO of Alcoa. "We believe the company is a good value at NOK 155 per share, and expect that the current management team will continue to deliver profitable growth for its shareholders."
    Elkem, through its 50/50 partnership with Alcoa, is the second largest producer of aluminum in Norway. Elkem Aluminium has an annual primary production capacity of 200,000 metric tons. Elkem is also the world's largest supplier of silicon metal.