2008-05-12 23:52:02 -

www.alcoa.com - Alcoa today announced that its Alcoa Electrical and Electronics Solutions business will close its operations in Puebla, Mexico and its warehouse in Del Rio, Texas during the third quarter of 2008. This decision is necessary due to lower production demand and a change in logistics processes. The restructuring will result in the permanent reduction of about 65 associates in Del Rio and approximately 1,400 in Puebla. The charges related to the restructurings were previously reported by Alcoa.

Alcoa EES employs approximately 14,000 associates in Mexico and 1,350 in the U.S. The business produces and distributes electrical distribution systems and other products for the North American light and heavy vehicle markets.

Jon A. Jensen, Alcoa EES President

for Light Vehicle Market and Operations-Americas, said: "This difficult decision is the result of the competitive conditions in the marketplace, and the actions are necessary to adjust AEES capacity to market demand and to improve our logistics processes."

Alcoa EES recognizes the impact that this workforce reduction will have on the lives of its employees, their families, and the community. Full severance, in addition to a combination of outplacement and transition support services, will be made available to all affected employees.

Alcoa Electrical and Electronic Solutions is a world leader in the design, development and production of high quality electrical and electronic distribution systems for personal and commercial vehicles, working with vehicle manufacturers and their sub-suppliers in the major automotive centers in China, Japan, Asia, Europe and the United States. Alcoa EES has more than 60 locations in 11 countries and 29,000 associates around the world focused on its customers.

About Alcoa

Alcoa (NYSE:AA) is the world leader in the production and management of primary aluminum, fabricated aluminum and alumina combined, through its active and growing participation in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components including flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa(R) wheels, fastening systems, precision and investment castings, and building systems. The Company has 97,000 employees in 34 countries and has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com

Alcoa
Investor Contact
Greg Aschman, 212-836-2674
or
Media Contact
Kevin G. Lowery, 412-553-1424
Mobile 724-422-7844
or
Alcoa EES - Farmington Hills, MI
Julie Bellamy, 248-489-4730
or
Alcoa EES - Torreon, Mexico
Armando Mireles, 877-788-5223