Alcoa Prepares to Move Forward with Next Phase of Massena Modernization

Alcoa today announced that it is prepared to proceed with the next phase
of the modernization of its Massena, NY operations, once the company
receives a Record of Decision (ROD) on the Grasse River that is in line
with the Proposed Remedial Action plan issued by the Environmental
Protection Agency last fall. The next phase includes spending $52
million for work that will begin in June 2013, including $10 million
toward economic development in the North Country.

'Thanks to the leadership of U.S. Sen. Charles Schumer, Gov. Andrew
Cuomo, the New York Power Authority and many other government officials,
employees, union leaders and community members, we are ready to take
this important step toward modernizing our Massena facilities,? said
Alcoa Executive Vice President and President of Global Primary Products
Chris Ayers. 'Modernizing Massena will help us move farther down the
aluminum cost curve and secure Alcoa′s place as a vital part of the
North Country′s economy for decades to come.?

Once a ROD is received, the next phase of the modernization will include
site work and support projects in preparation for the construction of a
new potline at the location′s Massena East plant. The company expects to
spend $52 million on this modernization phase through 2015, including
the $10 million commitment toward economic development.

Under the terms of the contract, NYPA will supply power to the
operations in Massena for a term of 30 years following the expiration of
Alcoa′s current power contract in 2013, with the option to extend the
contract for an additional 10 years under certain economic conditions.
In turn, Alcoa must invest a minimum of $600 million to modernize its
operations.

Forward-Looking Statements

This release contains statements that relate to future events and
expectations and as such constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include those containing such words as
'anticipates,? 'expects,? 'intends,? 'plans,? 'scheduled,? 'should,?
'will,? or other words of similar meaning. All statements that reflect
Alcoa′s expectations, assumptions or projections about the future other
than statements of historical fact are forward-looking statements.
Forward-looking statements are subject to a number of known and unknown
risks, uncertainties, and other factors and are not guarantees of future
performance. Important factors that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements include: (a) ?material adverse changes in aluminum industry
conditions, including global supply and demand conditions and
fluctuations in London Metal Exchange-based prices for primary aluminum,
alumina, and other products; (b) ?deterioration in global economic and
financial market conditions generally, or unfavorable changes in the
markets served by Alcoa; (c) ?Alcoa′s inability to achieve the level of
revenue growth, cash generation, cost savings, improvement in
profitability and margins, fiscal discipline, or strengthening of
competitiveness and operations (including moving its refining and
smelting businesses down on the industry cost curves and increasing
revenues in its Global Rolled Products and Engineered Products and
Solutions segments), anticipated from its restructuring programs,
productivity improvement, cash sustainability, and other initiatives;
(d) the outcome of contingencies, including legal proceedings,
government investigations, and environmental remediation; (e) failure to
maintain investment grade credit ratings which could limit Alcoa′s
ability to obtain future financing, increase its borrowing costs,
adversely affect the market price of its existing securities, or
otherwise impair its business, financial condition and results of
operations; (f) failure to receive from the U.S. Environmental
Protection Agency a Record of Decision on the Grasse River that is
consistent with the Preliminary Remedial Action Plan dated October 1,
2012; (g) changes in project economics, regulatory requirements, capital
expenditure restrictions, an inability to obtain financing, unexpected
events beyond Alcoa′s control, or other reasons which would preclude or
make unfeasible the company′s authorization of full implementation of
the Massena East modernization plan; and (h) ?the other risk factors
summarized in Alcoa′s Form 10-K for the year ended December ?31, 2012 and
other reports filed with the Securities and Exchange Commission. 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.

About Alcoa

Alcoa is the world′s leading producer of primary and fabricated
aluminum, as well as the world′s largest miner of bauxite and refiner of
alumina. In addition to inventing the modern-day aluminum industry,
Alcoa innovation has been behind major milestones in the aerospace,
automotive, packaging, building and construction, commercial
transportation, consumer electronics and industrial markets over the
past 125 years. Among the solutions Alcoa markets are flat-rolled
products, hard alloy extrusions, and forgings, as well as Alcoa ? wheels,
fastening systems, precision and investment castings, and building
systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral
part of Alcoa′s operating practices and the product design and
engineering it provides to customers. Alcoa has been a member of the Dow
Jones Sustainability Index for 11 consecutive years and approximately 75
percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 61,000 people in 30
countries across the world. For more information, visit www.alcoa.com
and follow @Alcoa on Twitter
at twitter.com/Alcoa.

Alcoa

Nick Ashooh, 212-836-2690