Alcan Launches Initiative to Make Energy-Efficient Aluminum

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-- RHÔNE-ALPES, France, Dec. 15, 2006 - Alcan is launching an R&D initiative aimed at reducing the environmental impact of its aluminum smelting technology and has set a target of reducing energy use by 20 percent.

"Alcan is aggressively pursuing breakthrough aluminum technologies to address rising energy costs and increased environmental expectations," said Michel Jacques, President and Chief Executive Officer, Alcan Primary Metal, while speaking to employees at the Company's R&D Centre in Voreppe. "In line with Alcan's objective of maximizing long-term sustainable value, this initiative will harness a combination of existing and emerging technologies, focused on developing a more energy efficient and cleaner smelting process," added Mr. Jacques.

Alcan will conduct this advanced cell technology R&D at its centers in Rhône-Alpes and continue to enhance the development of its leading AP30 Series technology at its St. Jean-de-Maurienne platform. Over the past ten years, AP Series technology has become the smelting technology-of-choice for the majority of the world's newly installed capacity, outside China and Russia.

The company has also further strengthened its technology platform in the Rhône-Alpes through its recent US$135 million acquisition of Carbone Savoie, a global leader in the design and production of cathode blocks. Cathode design is a critical factor in the performance of reduction cells in the aluminum electrolysis process.

"These recent developments and this new R&D initiative, anchored in the Rhône-Alpes region, will not only reinforce France's importance to Alcan, but also the Company's position as the world's centre for leading aluminum smelting technologies. These activities will be coordinated closely with Alcan's R&D efforts in Canada," continued Mr. Jacques.

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