Transaction Advances Alcoa’s Transformation

Lightweight metals leader Alcoa (NYSE:AA) today announced that it has
completed the acquisition of Firth Rixson, a global leader in aerospace
jet engine components. The Company closed the transaction, which was
announced on June 26, 2014, after receiving all of the required global
regulatory approvals and arranging financing for the deal.

Firth Rixson strengthens Alcoa’s robust aerospace portfolio and
positions the Company to capture greater profitable growth from its
expanding value-add business. The transaction doubles Alcoa’s average
revenue content on high-growth engine programs. Accelerating Alcoa’s
transformation to a multi-material enterprise, the acquisition increases
its offerings made of nickel-based superalloys, titanium, stainless
steel and advanced aluminum alloys, produced using the most advanced
isothermal forging technology and ring production capabilities.

“By combining the talent and cutting-edge technology of our two
innovation-driven companies, we are taking our aerospace business to new
heights,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive
Officer. “This transaction is creating a more profitable future for
Alcoa by delivering greater sustainable value for our customers,
employees and shareholders.”

With this acquisition, Alcoa’s revenues are expected to increase by $1.6
billion with an additional $350 million EBITDA in 2016, and to increase
by $2 billion in revenues by 2019. Approximately 70 percent of this
growth is secured by long-term agreements.

A majority of these new revenue streams come from aerospace sales,
enabling Alcoa to further capitalize on strong growth in the commercial
aerospace sector. Alcoa projects a compounded annual commercial jet
growth rate of 7 percent through 2019 and sees a current 9-year
production order book at 2013 delivery rates.

Alcoa is implementing a robust integration plan to realize significant
synergy cost savings, primarily driven by purchasing and productivity
improvements, optimizing internal metal supply and leveraging Alcoa’s
global shared services. These cost savings are expected to reach
approximately $100 million annually by year five. The transaction is
expected to be neutral to earnings the first year and accretive
thereafter and will generate a return in excess of cost of capital.
Firth Rixson’s businesses will be integrated into Alcoa’s Engineered
Products and Solutions (EPS) segment.

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. Through this acquisition, it now 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 62,000 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,” “estimates,” “expects,”
“forecasts,” “intends,” “outlook,” “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 Alcoa’s portfolio transformation, the company’s plans,
objectives, expectations and intentions relating to the Firth Rixson
business, the acquisition’s expected contribution to revenues, earnings
and EBITDA and expected cost savings, the company’s leadership in the
aerospace jet engine components industry, and the expected size, scope
and growth of the company’s operations and the market in which it will
operate. 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 operates or sells products, including
unfavorable changes in laws and governmental policies, civil unrest,
imposition of sanctions, expropriation of assets, or other events beyond
Alcoa’s control; (e) the risk that the Firth Rixson business 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 Firth Rixson could prove to be inaccurate;
(g) the loss of key employees, customers, suppliers and other business
relationships of Alcoa or Firth Rixson 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, 2013, Forms 10-Q for the quarters ended
March 31, 2014, June 30, 2014 and September 30, 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
Kelly Pasterick, 212-836-2674
Kelly.Pasterick@alcoa.com
or
Media Contact
Christa Bowers, 212-836-2605
Christa.Bowers@alcoa.com