Asia PR News

MONTREAL, April 27 /CNW-AsiaNet/ –

Company remains focused on operational excellence

HIGHLIGHTS:
———–
- Marked improvement in operating earnings reflects solid performances
across all four Alcan business groups;
- Pechiney integration, producing a run-rate of US$400 million in annual
synergies - US$40 million above original target;
- Spin-off of Novelis, the world’s leading aluminum rolled-products
company;
- World-wide deployment of the Alcan Integrated Management System (AIMS);
- Established Alcan as a leading global benchmark for sustainability
within the mining and metals sector.

At its 104th annual meeting of shareholders today, Alcan Inc. (NYSE, TSX:
AL) said 2005 was defined as a year of consolidation and accomplishment - and a
year that sets the stage for stronger results in the future.

"A solid performance across all four Alcan business groups in 2005, coupled
with strong aluminum fundamentals, have positioned the Company to deliver
greater value for stakeholders going forward," said Richard Evans, President
and Chief Executive Officer, Alcan Inc. "It is evident that capital markets are
beginning to appreciate the earnings power, organizational strength and the
attractive pipeline of new investment opportunities represented by today’s
Alcan," he added.

In 2005, Alcan recorded sales and operating revenues of US$20.3 billion, a
decrease of US$4.6 billion, compared to 2004 reflecting the Novelis spin-off.
On a pro-forma basis, after taking the spin-off into account, 2005 sales and
operating revenues increased by four percent.

Operating earnings also increased 40 percent, after adjusting prior year
results to take into account the Novelis spin-off. Over the course of the year,
Alcan reduced its debt-to-capital ratio from 46 percent to 40 percent.

The Company improved its performance despite a challenging operating
environment marked by higher input costs and unfavourable currency impacts, and
aided in the fourth quarter by improving primary metal market conditions.

AIMS - Driving Alcan’s Governing Objective of "Maximizing Value"

Over the past four years, the Alcan Integrated Management System (AIMS) has
become the Company-wide platform supporting the development of best-in-class
performance practices, aimed at establishing a sustainable competitive
advantage in each of Alcan’s four business groups. The Company has recently
announced and is implementing a fourth AIMS pillar dedicated to people.

"Whether the focus is on sustainability or profitability, from a governance
perspective, AIMS has contributed in a significant way to the progress we are
witnessing throughout Alcan," said L. Yves Fortier, Chairman of Alcan’s Board
of Directors. "AIMS is at the core of our commitment to doing the right thing,
to being the best and building a sustainable future for all Alcan
stakeholders," he added.

At the meeting, shareholders received the 2005 financial statements and the
Auditor’s Report, elected the Company’s Directors, appointed
PricewaterhouseCoopers as external auditors, and voted on a Shareholder
Proposal regarding Alcan’s minority stake in the proposed bauxite mine and
alumina refinery project (Utkal) in India.

Alcan (NYSE, TSX: AL) is a leading global materials company, delivering
high quality products, engineered solutions and services worldwide. With
world-class technology and operations in bauxite mining, alumina processing,
primary metal smelting, power generation, aluminum fabrication, engineered
solutions as well as flexible and specialty packaging, today’s Alcan is well
positioned to meet and exceed its customers’ needs. Alcan has 65,000 employees
in 59 countries and regions, posted revenues of US$20.3 billion in 2005 and was
selected as a Super-Sector Leader on the Dow Jones Sustainability World Index.
For more information, please visit: www.alcan.com.

Statements made which describe the Company’s intentions, expectations or
predictions may be "forward-looking statements" within the meaning of
securities laws. By their nature, forward-looking statements involve risk and
uncertainty; the Company’s actual results could differ materially from those
expressed or implied in such forward-looking statements.

SOURCE: Alcan Inc.

CONTACT: Media Contact:

Anik Michaud,
(514) 848-8151,
media.relations@alcan.com;

Investor Contact:

Corey Copeland,
(514) 848-8368,
investor.relations@alcan.com

(AL. AL)