NEW YORK–Alcoa (NYSE:AA) confirmed today that the U.S. Environmental Protection
Agency (EPA) has released the Proposed Remedial Action Plan (PRAP) for
the Grasse River. Alcoa has worked with the EPA and other agencies to
evaluate remedial alternatives to address elevated levels of
polychlorinated biphenyls (PCBs) in fish in the lower Grasse River.

The alternative proposed by the EPA in the PRAP is one of the 10
clean-up options evaluated in the Analysis of Alternatives (A of A)
report that Alcoa submitted. The A of A is a science-based document,
generated by Alcoa under the direction of the EPA and with input from
other stakeholders.

The PRAP is now open for public comment until November 15.

“Alcoa has worked cooperatively with EPA to address the PCB sediments in
the Grasse River, and we are pleased to see this important step in the
remediation process move forward,” said Kevin Anton, Alcoa Vice
President and Chief Sustainability Officer. “While Alcoa believes that a
capping remedy is both protective of human health and the environment
and complements the natural recovery that is already occurring in the
river, we look forward to working with EPA and the other agencies on the
proposed remedy during the design and implementation phases of the
project.”

Following the public comment period, EPA will review comments and issue
a final Record of Decision (ROD). Once a ROD is received, the planning
and design phase is expected to take approximately two to three years,
followed by the actual remediation field work that is expected to take
about four years. The majority of funding for the project will be spent
between 2016 and 2020.

The estimated cost in the A of A for the proposed alternative is within
the range Alcoa has previously disclosed. As a result of the EPA’s
issuance of the PRAP, Alcoa expects to record an associated after-tax
charge of approximately $85 million, or $0.08 per share, in its third
quarter 2012 results.

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 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 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 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 include those containing such words as
“anticipate,” “expect,” “plan,” “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) the outcome of contingencies, including
legal proceedings, government investigations, and environmental
remediation; (d) the inability to complete the remediation of the Grasse
River as planned, within cost estimates, and by scheduled completion
dates, whether due to unexpected events beyond Alcoa’s control,
regulatory requirements, or other reasons; and (e) the other risk
factors summarized in Alcoa’s Form 10-K for the year ended December 31,
2011 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.