Alcoa and Alcoa Foundation Report Combined Investment of $28.8 Million in Alcoa

PITTSBURGH--(BUSINESS WIRE)--Feb. 25, 2005--Alcoa (NYSE:AA) and Alcoa Foundation today released year-end highlights from their combined community giving programs that include a $28.8 million investment in Alcoa communities worldwide - a $2 million increase from the previous year.

Additional highlights include:

-- a global volunteer event involving thousands of Alcoa volunteers in 170 communities in 27 countries worldwide;

-- a 39% increase in employee engagement grants; and

-- an expansion in the number of countries where grants were made.

"I am proud of our combined investments in the communities where Alcoans live and work," said Alain Belda, Alcoa chairman and CEO. "Alcoa and Alcoa Foundation have demonstrated their commitment to investing in Alcoa communities across the world. As we expand our global breadth, communities in Trinidad & Tobago, Iceland and Russia can be assured that we will partner with them just as we've taken an active interest in all areas that Alcoans call home."

Grantmaking

Grantmaking for Alcoa Foundation totaled $17 million, up approximately $2 million from 2003. The Foundation's grantmaking efforts expanded to 33 countries around the world in 2004 as part of an overall strategy to globalize giving. In 2004, international giving represented 39% of the Foundation's portfolio compared to 18% in 2000. Over just five years, the percentage of the Foundation's portfolio that represents international giving more than doubled. This reflects Alcoa's expanding global presence and the Foundation's aspiration to invest everywhere Alcoa operates. Together, Alcoa and the Foundation invested a combined $28.8 million in cash and non-cash contributions in Alcoa communities last year.

Disaster Relief Grants

In 2004, the Foundation assisted Alcoa communities in their time of need with grants to support natural disaster relief efforts following Hurricanes Ivan and Charley that originated in the Caribbean, the earthquakes in Japan, and flooding in France, Mexico and the United States. The Foundation donated more than $300,000 in grants to Red Cross chapters across the world in support of these efforts.

'More than Money' Community Investments

Taking Action - Alcoa's Worldwide Week of Community Service focused on global education and workplace skills in 2004. This second annual global volunteer event involved thousands of Alcoa employees in 170 communities in 27 countries last October. Just a few of the projects involving Alcoa employees included:

-- providing special education in Peru;

-- presenting environmental and safety lessons to elementary school children in Brazil;

-- rebuilding a farmhouse in Italy for the Boy Scouts to use for educational programs;

-- and building a climbing wall to teach the importance of teamwork to students in Canada.

Employee engagement activities continued to increase in 2004 as Alcoa employees demonstrated their longstanding commitment to volunteer in their communities. There was a 6.5% increase in ACTION (Alcoans Coming Together In Our Neighborhoods) projects in 2004 and a 122% increase in Bravo! grants in 2004. Combined, ACTION and Bravo! grants increased by 39% to more than $2 million in 2004. Bravo! and ACTION are Alcoa employee engagement programs managed by the Foundation. While ACTION recognizes group efforts by employees, Bravo! recognizes the volunteer efforts of individual Alcoa employees. In 2004, Alcoa employees volunteered nearly 300,000 hours in the Bravo! program and provided more than 20,000 hours of community service in the ACTION program.

About Alcoa Foundation

Established in 1952, Alcoa Foundation is a global resource that actively invests in improving the quality of life in the countries around the world where Alcoa operates. The Foundation's grants address global and local needs in Areas of Excellence that include: Conservation and Sustainability, Global Education and Workplace Skills, Business and Community Partnerships and Safe and Healthy Children and Families. Alcoa Foundation manages Alcoa's ACTION and Bravo! programs which recognize the volunteer efforts of employees with grants to the organizations they serve. For more information about Alcoa Foundation, visit www.alcoa.com, under Community.

About Alcoa

Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active 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, Alcoa also markets consumer brands including Reynolds Wrap(R) foils and plastic wraps, Alcoa(R) wheels, and Baco(R) household wraps. The company has 131,000 employees in 43 countries and has been a member of the Dow Jones Industrial Average for 45 years and the Dow Jones Sustainability Indexes since 2001. More information can be found at www.alcoa.com --

CONTACT:

Alcoa

Investor Contact

William F. Oplinger, 212-836-2674

Media Contact

Kevin G. Lowery, 412-553-1424

Mobile: 724-422-7844