Expands Global Growth Platform for Titanium Aerospace Components

• Supports Alcoa’s strategy of growing globally in innovative, high-performance aerospace metals, particularly titanium
• Expands Alcoa’s titanium casting capabilities into Europe, with strong customer relationships
• TITAL’s revenues from titanium are expected to increase by 70 percent over the next five years
• Almost 70 percent of TITAL’s revenues are expected to come from commercial aerospace sales in 2019

Lightweight, high-performance metals leader Alcoa (NYSE: AA) today
announced that it has completed the acquisition of privately held TITAL.
Alcoa closed the transaction, which was announced on December 15, 2014,
after receiving all of the required global regulatory approvals.

TITAL is a leading manufacturer of titanium and aluminum structural
castings for aircraft engines and airframes. This acquisition
strengthens Alcoa’s ability to capture growing demand for advanced
aircraft engine components, in particular, those made of titanium. TITAL
establishes titanium casting capabilities in Europe for Alcoa, and
expands the Company’s aluminum casting capacity. Additionally, TITAL’s
strong connections to European engine and aircraft manufacturers such as
Airbus, SNECMA, and Rolls-Royce, will enhance Alcoa’s customer
relationships in the region and beyond.

“We are combining two leading, innovation-driven businesses to continue
increasing Alcoa’s highly differentiated content on the world’s
best-selling airplanes and jet engines,” said Olivier Jarrault,
Executive Vice President and Alcoa Group President, Engineered Products
and Solutions. “This transaction supports our strategy of creating a
more profitable future by growing our value-add businesses. Through
these efforts, Alcoa will continue delivering greater sustainable value
for our customers, employees and shareholders.”

With TITAL, Alcoa is well positioned to capitalize on strong demand
growth in the commercial aerospace sector. Alcoa sees a current 8-year
production order book at 2014 delivery rates. Almost 70 percent of
TITAL’s revenues are expected to come from commercial aerospace sales in
2019. Further, its titanium revenues are expected to increase by 70
percent over the next five years as manufacturers of next-generation jet
engines look to titanium solutions for engine structural components. In
2014, TITAL generated revenues of approximately €77 million
(approximately US$100 million), more than half of which came from
titanium products.

Alcoa is implementing a robust integration plan to support TITAL’s
growth and to further improve productivity, primarily driven by
procurement, internal metal supply, manufacturing optimization and
leveraging Alcoa’s global shared services. TITAL’s business is being
integrated into Alcoa’s Engineered Products and Solutions (EPS) segment.

Alcoa Aerospace

Alcoa has been aggressively growing its aerospace business as part of
the Company’s broader transformation. In 2014, Alcoa completed the
acquisition of global jet engine component leader Firth
Rixson. This was the first of two announced acquisitions, including
the TITAL transaction. Alcoa also announced investments to expand jet
engine parts production in Indiana
and Virginia,
opened the world’s largest aluminum-lithium facility in Indiana,
and in Michigan,
plans to expand its coatings capabilities for jet engine components. In
addition, the Company announced plans to install advanced aerospace
plate manufacturing capabilities in Iowa.
It also announced in 2014 supply deals exceeding $2 billion with Boeing
and Pratt
& Whitney, which included the world’s first forging for an
aluminum fan blade for Pratt & Whitney’s PurePower^® jet
engines. The PurePower engine will be used to power some of the world’s
highest volume aircraft, including the next-generation Airbus A320neo.

Alcoa’s aerospace business holds the number one global position in
aluminum forgings and extrusions, jet engine airfoils and fastening
systems and is a leading supplier of structural castings made of
titanium, aluminum and nickel-based superalloys and aluminum sheet and
plate. It also holds the number one global position in seamless rolled
jet engine rings, engineered from nickel-based superalloys and titanium,
and is one of the world’s leading suppliers of vacuum melted superalloys
used to make aerospace, industrial gas turbine, oil and gas products and
structural components for landing gear applications. It also has entered
into a highly specialized segment of jet engine forgings that require
isothermal forging technology.

About Alcoa

A global leader in lightweight metals technology, engineering and
manufacturing, Alcoa innovates multi-material solutions that advance our
world. Our technologies enhance transportation, from automotive and
commercial transport to air and space travel, and improve industrial and
consumer electronics products. We enable smart buildings, sustainable
food and beverage packaging, high-performance defense vehicles across
air, land and sea, deeper oil and gas drilling and more efficient power
generation. We pioneered the aluminum industry over 125 years ago, and
today, our approximately 59,000 people in 30 countries deliver value-add
products made of titanium, nickel and aluminum, and produce
best-in-class bauxite, alumina and primary aluminum products. For more
information, visit www.alcoa.com,
follow @Alcoa on Twitter at www.twitter.com/Alcoa
and follow us on Facebook at www.facebook.com/Alcoa.

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,” “forecasts,” “intends,” “plans,” “projects,”
“sees,” “should,” “targets,” “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, including, without limitation,
statements regarding the expected impact of the acquisition of TITAL on
Alcoa’s financial results and its global position to capture demand for
advanced aircraft engine components, including those made of titanium,
TITAL’s expected increase in revenues from titanium, the expected
expansion of Alcoa’s global aerospace business, forecasts concerning
demand growth in the commercial aerospace sector, the expected size,
scope and growth of the combined company’s operations, anticipated
enhancements to Alcoa’s customer relationships in Europe as a result of
the acquisition, and the other expected benefits of the transaction.
These statements reflect beliefs and assumptions that are based on
Alcoa’s perception of historical trends, current conditions and expected
future developments, as well as other factors management believes are
appropriate in the circumstances. 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) deterioration in
global economic and financial market conditions generally; (b)
unfavorable changes in the markets served by Alcoa, including aerospace;
(c) increases in the costs of raw materials; (d) political, economic,
and regulatory risks in the countries in which Alcoa and TITAL operate
or sell products; (e) the risk that TITAL will not be integrated
successfully or such integration may be more difficult, time-consuming
or costly than expected; (f) the possibility that certain assumptions
with respect to TITAL could prove to be inaccurate; (g) the loss of key
employees, customers, suppliers and other business relationships of
Alcoa or TITAL as a result of the acquisition; and (h) the other risk
factors summarized in Alcoa’s Form 10-K for the year ended December 31,
2014, 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.

Alcoa
Investor Contact:
Nahla Azmy, +1-212-836-2674
Nahla.Azmy@alcoa.com
or
Media Contact:
Christa Bowers, +1-347-244-9669
Christa.Bowers@alcoa.com
or
Alcoa Europe
Jasper van Zon, +31 653 600 563
Jaspervan.Zon@alcoa.com