AFL Automotive to Restructure Mexican Operations

PITTSBURGH--May 2, 20041, 2004--Alcoa today announced that its Alcoa Fujikura Ltd. (AFL) Automotive operations will reorganize its operations in Piedras Negras and Torreon, Coahuila, Mexico. This adjustment is necessary to maintain the competitiveness in the markets in which the company operates as a result of reduced production. This restructuring will happen in June of this year, resulting in the permanent reduction of approximately 1,300 positions in Torreon and 1,050 positions in Piedras Negras.

The operations of AFL Automotive in Mexico employ approximately 24,000 associates (4,464 in Piedras Negras and 4,139 in Torreon), and produce, and distribute electrical distribution systems and other products for the North American light and heavy vehicle markets.

Jose Alvarado, AFL Automotive - Mexico Vice-President, said, "This difficult decision is the result of the competitive conditions of the global market, and the actions in Piedras Negras and Torreon are necessary to adjust AFL capacity to better match demand."

AFL Automotive recognizes the impact that this workforce reduction will have on the lives of its employees, their families, and the community at large. Full severance, in addition to a combination of outplacement and transition support services, will be made available to all affected employees.

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 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 120,000 employees in 41 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

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 of Alcoa 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 (a) the company's inability to complete or to complete in the anticipated timeframe pending divestitures, acquisitions or expansion projects or to realize the projected amount of proceeds from divestitures, (b) the company's inability to achieve the level of cost savings or productivity improvements anticipated by management, (c) unexpected changes in global economic, business, competitive, market and regulatory factors, and (d) the other risk factors summarized in Alcoa's 2003 Form 10-K Report and other SEC reports.