Released on October 5, 2007

Alcoa Inc., Pittsburgh, announced that it is nearing a definitive deal to sell its automotive castings unit, as well as its packaging and consumer products division.

The aluminum giant first indicated that it was interested in selling its casting unit in late April, when it announced it would “explore strategic alternatives” involving both its automotive castings and electronics units. Those two units produced combined $1.6 billion in 2006 and were marginally profitable, according to a press release issued by Alcoa. At the same time, the metals company began an analysis of its packaging and consumer products divisions.

The company now says it expects to take charges of $845 million as it closes in on the sale of the two businesses, which will enable it to focus on growth opportunities in other areas.

The moves come after Alcoa disclosed last month that it had sold its nearly 7% stake in China-based Aluminum Corporation of China Ltd., for $2 billion.

Alcoa said it still plans to restructure its electrical and electronic solutions business and record after-tax restructuring and impairment charges in its third quarter of about $195 million related to that unit. The company will record $50 million for charges related to the automotive castings business, and $600 million for the planned sale of the packaging and consumer business.