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Alcoa Packaging Enters Into Exclusive Supply Agreement with R. J. Reynolds Tobacco

RICHMOND, VA, May 5, 2005 -- Alcoa announced today that its Alcoa Packaging (AFP) business has entered into a long term supply agreement with R. J. Reynolds Tobacco Company (RJRT).

AFP has secured a long-term supply agreement with RJRT for its tobacco inner foil and inner frame business as well as obtaining specific production equipment.

"The addition of this new business to AFP's existing portfolio is consistent with our mission to be the industry leader in tobacco inner foil and inner frame materials. The equipment being acquired by Alcoa Packaging will be used to expand production capacity and facilitate further growth in tobacco inner foil and inner frame around the world," stated Andy Starr, international sales manager, Tobacco and Confection Packaging Products.

About Alcoa Packaging

Alcoa Packaging, based in Richmond, Virginia, manufactures a variety of packaging materials including extrusion and adhesive laminated pouch materials, overwraps and linerstock, blister lidding foil, thermoformed trays, cable wrap, plastic shrink sleeve body labels, and shrink film. These packaging materials serve the world's leading consumer products manufacturers within the pharmaceutical, medical, food & beverage, and industrial markets.

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® foils and plastic wraps, Alcoa® wheels, and Baco® household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. 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.


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