Alcoa Completes Acquisition of Ivex Packaging Corporation; Move Broadens Alcoa's Position in the Foodservice and Consumer Packaging Industry

    PITTSBURGH--July 1, 2002--Alcoa Inc. announced today that it has completed its previously announced agreement to acquire Chicago-based Ivex Packaging Corporation. Shareholders of Ivex will receive $21.50 per share in cash. The acquisition excludes Ivex's 48.2% interest in Packaging Dynamics Corporation, which will be distributed to Ivex's shareholders.
    Ivex is a leading manufacturer of specialty plastic packaging for the food, electronic, medical, and retail markets with revenues totaling $643 million in 2001. Ivex has approximately 3,700 employees primarily in North America, as well as Europe and Southeast Asia. It will become part of Alcoa's global packaging and consumer business, which had 2001 revenues of $2.7 billion and after-tax operating income of $185 million.
    Alcoa is the world's leading producer of primary aluminum, fabricated aluminum and alumina, 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 as a single solution to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) aluminum foil, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding, closures, precision castings, and electrical distribution systems for cars and trucks. The company has 129,000 employees in 38 countries.

    Alcoa

    Forward Looking Statement

    Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown risks and uncertainties that may cause actual results, performance or achievements related to this transaction to be different from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include Alcoa's inability to achieve the level of growth anticipated by management, including possible increases in the cost of doing business resulting from economic or competitive factors in Japan, and other risk factors summarized in Alcoa's Form 10-K for the year ended December 31, 2001.