Asia PR News

SAGUENAY, June 30 /CNW Telbec-AsiaNet/ –

Alcan Inc. (NYSE, TSX: AL)announced today that its Quebec employees
represented by the Canadian Auto Workers (C.A.W.) union have ratified a new
collective labour agreement by a 91.4 percent majority. The agreement will
cover an initial five-year period with an additional four-year term available
should Alcan decide to proceed with a major investment in the Complex Jonquière
during the agreement’s first term.

"Alcan is very pleased with the outcome of these productive, good-natured
discussions and impressed by both parties’ ability to reach an agreement well
ahead of the December 31, 2006 deadline," said Cynthia Carroll, President and
Chief Executive Officer, Alcan Primary Metal Group. "This agreement is critical
to ensuring the competitiveness of the Complex Jonquière, and to securing
long-term employment opportunities, by contributing to the right conditions
needed to attract major investments to the Complex," she added.

The agreement provides for competitive annual wage increases based on a
formula largely similar to that used by Alcan in Quebec since 1998, which
compares wage increases across a group of Quebec’s fifteen largest, unionized
industrial companies. Historically, the average wage increase in Quebec’s
labour market has been approximately 2.5 to 3 percent per annum.

The agreement applies to C.A.W. employees at the Arvida, Beauharnois,
Laterrière, Shawinigan and Vaudreuil Works sites, as well as those at Power
Operations, Port Facilities, Alma Railway Operations and the Arvida Research
and Development Centre (ARDC).

"I commend the excellent work of the various negotiating teams," said Jean
Simon, President, Alcan Primary Metal, Quebec and USA. "With this collective
agreement ratified, Alcan can proceed in implementing the Complex Jonquière’s
new business model, so as to establish conditions that can provide for its
future viability," he added.

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:

Renée Larouche,
+1-418-699-4005,
renee.larouche@alcan.com;

Anik Michaud,
+1-514-848-8151,
media.relations@alcan.com;

Investor Contact:

Corey Copeland,
+1-514-848-8399,
investor.relations@alcan.com

(AL. AL)