Alcoa Acquires U.K.-Based Baco Consumer Products,Ltd.

Business Editors

PITTSBURGH and LONDON--(BUSINESS WIRE)--Aug. 4, 2000

Alcoa Inc. (NYSE:AA) announced today that it has acquired privately held Baco Consumer Products, Ltd., headquartered near London. Terms of the deal were not disclosed.

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Baco is the U.K.'s leading supplier of household wraps, including aluminum foil, plastic bags, clingfilm and bin liners. Luxfer Holdings plc, a U.K. business, is the principal investor in Baco, along with a number of minority investors.

"Alcoa's acquisition of Baco Consumer Products is a critical step in expanding the global presence of our Consumer Products business," said Ruth Mack, vice president and general manager of Consumer Products. "Similar to the Reynolds-brand products and private label offerings in the United States, Baco is the U.K. market leader in the wraps and bags business. We plan to build upon the excellent Baco presence in the U.K. and across Europe."

Ms. Mack added, "This acquisition combines two companies with complementary expertise, markets and geographies. Consumers and retail customers on both sides of the Atlantic will benefit as we share our consumer products marketing, manufacturing and research and development capabilities. Alcoa plans to retain Baco's management as we work to grow this business. For all of these reasons, we expect this acquisition to be accretive to Alcoa within the first year."

Alcoa is the world's leading producer of aluminum and alumina, and a major participant in all segments of the industry: mining, refining, smelting, fabricating and recycling. Alcoa serves customers worldwide in the consumer products, packaging, automotive, aerospace, construction and other markets with a variety of fabricated and finished products. The company has over 300 operating locations in 36 countries.

Baco Consumer Products, Ltd. is the leading supplier of household wraps in the U.K. Baco Foodservice offers a full line of aluminum foil, trays, food and freezer bags, and plastic wrap.

Some of the statements made in this press release are forward looking. Actions resulting from the acquisition by Alcoa of Baco Consumer Products, Ltd. may differ from those implied. Factors such as changes in economic conditions in the markets we serve may cause future actions to differ from those predicted today.