Alcoa Completes Sale to Rank Group

NEW YORK—Alcoa announced it has completed the sale of its packaging and consumer businesses to New Zealand’s Rank Group Limited.

Alcoa’s packaging and consumer businesses generated approximately 11 percent of Alcoa 2007 revenues and approximately 4.6 percent of 2007 after-tax operating income. Businesses included in the sale are:

• Closure Systems International;
• Consumer Products, including Reynolds Wrap branded products;
• Flexible Packaging; and
• Reynolds Food Packaging.

In total, these packaging businesses have approximately 9,300 employees in 22 countries around the world. Alcoa will continue to operate its flat-rolled can sheet products serving the packaging market.

Alcoa received approximately $2.5 billion in cash from Rank in the sale. An additional approximately $200 million is expected by April 2008 when regulatory and other approvals are received for a small number of facilities. Lehman Brothers acted as financial advisor to Alcoa on this transaction.