ALCOA, BHP BILLITON TO SELL INTEGRIS METALS TO RYERSON TULL FOR $660 MILLION

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ALCOA, BHP BILLITON TO SELL INTEGRIS METALS TO RYERSON TULL FOR $660 MILLION
26 October 2004 - Alcoa

Alcoa and BHP Billiton today announced they have agreed to sell 100% of their respective equity interests in Integris Metals to Ryerson Tull for $410 million in cash plus assumption of Integris' debt, which was approximately $250 million as of 1 October 2004.

Alcoa and BHP Billiton each own 50% of Integris Metals. The transaction is expected to be completed by early 2005.

Integris Metals, a metals service centre company engaged in the processing and distribution of metals, was formed in November 2001 through the combination of Reynolds Aluminium Supply Company (RASCO) and North America Metals Distribution (NAMD) Inc, the metals distribution businesses of Alcoa and BHP Billiton, respectively. Integris Metals has approximately 2400 employees. The shareholders' stated strategic intent was to create value through the combination of RASCO and NAMD and then exit the business, when appropriate, as the metals distribution business was not core to either shareholder.

In August, Alcoa and BHP Billiton announced that Integris Metals had filed a registration statement with the SEC for an initial public offering (IPO) of its stock. Ryerson Tull approached the companies after the IPO filing and, as a result, a sale to Ryerson Tull is now agreed.

Alcoa and BHP Billiton were advised in the transaction by Deutsche Bank Securities Inc and J.P. Morgan Securities Inc. The sale of Integris to Ryerson Tull will be subject to normal regulatory approvals.

http://www.alcoa.com

About: Alcoa
Alcoa is a leading producer of primary aluminium, fabricated aluminium and alumina and is active in all major aspects of the industry. It serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production, and other capabilities of Alcoa's businesses as a single solution to customers. The company has 120 000 employees in 41 countries.

In addition to aluminium products and components, Alcoa also makes and markets consumer brands including Reynolds Wrap, 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.

Alcoa makes a very sustainable product: almost 70% of the aluminium ever produced is still in use, equalling 480 million tonnes of a total 690 million tonnes manufactured since 1886.

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