Exit of Shining Prospect to Improve Alcoa Balance Sheet

NEW YORK--Alcoa today announced it is exiting the Shining Prospect special purpose vehicle formed together with Chinalco to purchase shares in Rio Tinto plc. Alcoa will receive a total of $1.021 billion in cash payable in three installments over a six-month period ending July 31, 2009. Alcoa also will receive its pro rata portion of dividends paid by Rio Tinto to date since the investment was made as and when recovered by Shining Prospect.

This transaction will improve Alcoa’s cash position and result in a positive impact on the Company’s debt-to-capital ratio. The Company will record a non-cash after-tax loss of approximately $120 million on the investment in the first quarter of 2009.

“This transaction, combined with our intention to explore opportunities to expand our commercial relationship, strengthens Alcoa’s ability to weather the economic downturn,” said Klaus Kleinfeld, Alcoa President and CEO. “When the global economy recovers, the pent-up consumer and industrial demand will create a broad array of opportunities in both developed and developing regions for Chinalco and Alcoa.”

Alcoa is the world leader in the production and management of primary aluminum, fabricated aluminum and alumina combined, through its active and growing participation 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 Alcoaź wheels, fastening systems, precision and investment castings, and building systems. The Company has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland and has been a member of the Dow Jones Sustainability Index for seven consecutive years. More information can be found at www.alcoa.com.

Forward-Looking Statements

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. Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: (a) uncertainties regarding the duration or severity of the current global economic downturn and their impact on Alcoa; (b) material adverse changes in aluminum industry conditions generally, including global supply and demand conditions and fluctuations (including sustained declines) in London Metal Exchange-based prices for primary aluminum; (c) Alcoa’s inability to achieve the level of cost reductions, cash conservation or return on capital improvement anticipated by management; (d) continued volatility or deterioration in the financial markets or further downgrades in Alcoa's credit ratings which may adversely affect the cost of borrowing or ability to access the credit or capital markets; and (e) the other risk factors summarized in Alcoa’s Form 10-K for the year ended December 31, 2007, Forms 10-Q for the quarters ended March 31, 2008, June 30, 2008 and September 30, 2008 and other reports filed with the Securities and Exchange Commission.