Aluminum Demand to Double by 2020; Alcoa Innovation Driving
Profitable Growth

NEW YORK–Alcoa (NYSE:AA) executives told investors today that the company is
positioned to accelerate shareholder value creation.

Speaking at the Company’s Investor Day, executives outlined how Alcoa
has met the commitments of its cash sustainability program, emerged
stronger from the downturn with leading market positions, and is
targeting profitable growth through innovation and technology.

“Growth in the aluminum industry is expected to double over the next 10
years, as increasing populations in emerging markets such as China and
Brazil urbanize and turn to more sustainable products in transportation,
buildings and packaging,” said Alcoa Chairman and CEO Klaus Kleinfeld.

“Alcoa is uniquely positioned to benefit from this trend. We alone have
the combination of technical depth, world-class assets, outstanding
products and talented people to seize this opportunity and accelerate
shareholder value.”

Executives outlined the unique strengths and major value drivers of
their businesses, including:

Global Primary Products

• Leading competitive position in all segments of primary aluminum
  production
• Juruti and Sao Luis at full production by year-end 2010
• Ma’aden: lowest cost smelter online 2013, lowest cost refinery online
  2014
• Centers of Excellence to drive continued productivity
• Improving cost curve position: targeting 23rd percentile in
  alumina, 41st percentile in aluminum by 2015
• Revenue growth through alumina index pricing
• Revenue growth through optimization of value-added primary products

Global Rolled Products

• Streamlined business – leaner and more profitable – with additional
  capacity to grow
• Growth investments in emerging markets creating value: China
  ramping-up and Russia profitable
• Ma’aden lowest cost rolling mill online in 2013
• Leadership position in aerospace and innovations for the automotive
  and packaging markets driving profitable growth faster than market
  recovery
• Targeting approximately $2.5 billion in additional revenue by 2013

Engineered Products and Solutions

• Restructured cost base with additional capacity to grow
• Strengthened portfolio: 85% of sales from #1 or #2 market leaders
• Innovation and new products to fuel profitable growth faster than
  market recovery
• Targeting approximately $1.6 billion in additional revenue by 2013

The webcast of the event is available for replay and the presentations
are archived at www.alcoa.com/investorday.

About Alcoa

Alcoa is the world’s leading producer of primary aluminum, fabricated
aluminum and 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 120 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 nine consecutive years and approximately
75 percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 59,000 people in 31
countries across the world. More information can be found at www.alcoa.com.

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 may be identified by their use of predictive
or future-tense terminology, such as “anticipates,” “believes,”
“estimates,” “expects,” “forecasts,” “goal,” “intends,” “outlook,”
“plans,” “projects,” “scheduled,” “targets,” or variations of such words
and phrases, or state that certain actions, events or results “may,”
“could,” “should,” “might,” or “will” be taken, occur or be achieved.
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, forecasts
concerning aluminum industry growth or other trend projections,
anticipated or targeted financial results or operating performance, and
statements regarding Alcoa’s strategies, objectives, goals, outlook, and
business and financial prospects. Forward-looking statements are subject
to known and unknown risks, uncertainties and other factors that could
cause actual results, performance or achievements of Alcoa to differ
materially from those expressed or implied by the forward-looking
statements. Some of the important factors that could cause actual
results to differ materially from those 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) unfavorable changes in general business
and economic conditions, in the global financial markets, or in the
markets served by Alcoa, including automotive and commercial
transportation, aerospace, building and construction, distribution,
packaging, oil and gas, defense, and industrial gas turbine; (c) the
impact of changes in foreign currency exchange rates on costs and
results, particularly the Australian dollar, Brazilian real, Canadian
dollar, and Euro; (d) increases in energy costs, including electricity,
natural gas, and fuel oil, or the unavailability or interruption of
energy supplies; (e) increases in the costs of other raw materials,
including caustic soda or carbon products, or in labor or transportation
costs; (f) Alcoa’s inability to achieve the level of cash generation,
cost savings, improvement in profitability and days working capital, or
strengthening of operations or gain in market share anticipated from its
cash sustainability, productivity improvement, new product innovations
and other initiatives; (g) Alcoa’s inability to realize expected
benefits from newly constructed, expanded or acquired facilities or from
international joint ventures as planned and by targeted completion
dates, including the joint venture in Saudi Arabia or the upstream
operations in Brazil; (h) engineering and construction timetables and
capital costs for development and expansion projects; (i) political,
economic, and regulatory risks in the countries in which Alcoa operates
or sells products, including unfavorable changes in laws and
governmental policies; (j) the outcome of contingencies, including legal
proceedings, government investigations, and environmental remediation;
(k) the outcome of negotiations with, and the business or financial
condition of, key customers, suppliers, and business partners;
(l) changes in tax rates or benefits; and (m) the other risk factors
summarized in Alcoa’s Form 10-K for the year ended December 31, 2009,
Forms 10-Q for the quarters ended March 31, 2010, June 30, 2010 and
September 30, 2010, and other reports filed with the Securities and
Exchange Commission. Alcoa disclaims any intention or obligation to
update or revise any forward-looking statements, whether in response to
new information, future events or otherwise, except as required by
applicable law.