Alcan announces acquisition of 30% of Gove alumina refinery; issues fourth quarter warning and announces higher merger synergies 2000/12/12

Montreal, Canada — Alcan Aluminium Limited (NYSE, TSE: AL) announces that it will acquire 30 percent of the Gove alumina refinery and related bauxite mine at a cost of US$393 million. The Company already owns 70 percent of these assets, which have a total annual capacity of 1.8 million tonnes of low-cost alumina. This investment will enable the Company to further reduce its average alumina cost, while giving it access to 100 percent of Gove's low-cost expansion potential. The acquisition is expected to be completed in January 2001. During the year, the Company expects to realize about US$400 million from the sale of some assets. The Company also announces that its earnings for the fourth quarter of 2000 are not expected to meet the forecast published by First Call. The First Call estimate of US$0.65 per share (as of December 11, 2000) represents an average of widely differing forecasts that have been issued by a number of financial analysts. The Company indicated at a press and analysts conference on October 16, 2000, that certain factors would have an adverse impact on near term earnings. They include the following: A greater than expected reduction in fabricated product shipments, due mainly to slowing economic growth and ongoing de-stocking in North America and Asia; The effect of weaker European currencies on the translation into U.S. dollars of European earnings, which now form a larger proportion of the Company's income; Peak start-up expenses and lower capitalized interest related to the new smelter in Alma, Quebec. The start-up of the smelter is proceeding well and it is expected to reach its annual capacity level of 400 kt during the third quarter of 2001. It is expected to produce 270 kt in 2001. In addition, the Company is incurring short-term development costs associated with increased supplies of engineered products to the automobile industry in Europe, and a squeeze on profit margins of certain flexible packaging products. The Company has also indicated that earnings per share will reflect: The issuance of about 116 million shares in exchange for algroup shares; Interest costs on debt incurred for the pre-merger special dividend and capital repayment to algroup shareholders; Amortization of goodwill and depreciation on asset revaluation arising from the merger. The Company estimates that earnings per share for the current quarter, before amortization of goodwill and depreciation on asset revaluation and other special items, should be between US$0.50 and US$0.55 per share. Ongoing goodwill amortization is currently estimated at US$140 million per year or US$0.11 per share for the quarter. Other special items during the quarter will include a one-time charge of US$0.13 per share in respect of the recently announced closure of foil operations at Rogerstone in the U.K. and inventory adjustments arising from merger accounting requirements. Since consummation of the merger, the Company has identified synergies totaling US$200 million. This is 33 percent higher than the previous estimate of US$150 million. These synergies are expected to be realized within the previously announced timeframe of 24 months. Also, one-time cash costs to achieve these higher synergies are now expected to be lower, at US$100 million compared to the previous estimate of US$150 million. Statements made by or on behalf of Alcan, in or in connection with this press release, which describe the Company's or management's objectives, projections, estimates, expectations or predictions of the future may be "forward-looking statements" within the meaning of applicable securities legislation and regulations. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and that the Company's actual results could differ materially from those expressed or implied in such forward-looking statements or could affect the extent to which a particular projection is realized. Important factors which could cause the Company's actual performance to differ materially from projections or expectations included in forward-looking statements include global aluminium supply and demand conditions, aluminium ingot prices and changes in other raw materials costs and availability, changes in the relative value of various currencies, cyclical demand and pricing within the principal markets for the Company's products, changes in government regulations, particularly those affecting environmental, health or safety compliance, economic developments and other factors within the countries in which the Company operates or sells its products and other factors relating to the Company's ongoing operations including, but not limited to, litigation, labour negotiations and fiscal regimes. Alcan is a multinational, market-driven, US$12.4 billion organization and a global leader in aluminum and packaging. Alcan maintains a low-cost position in primary aluminum, has advanced aluminum fabrication facilities and has a US$3 billion global flexible and specialty packaging business. Alcan employs 53,000 people and has operations in 37 countries. -30- Media Contact: Marc Osborne +1 (514) 848-1342 Investor Contact: Michael Hanley +1 (514) 848-8368

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