Alcan subsidiary to invest US$17 million to meet growing demand for cathode products

Carbone Savoie, an Alcan subsidiary, today announced plans to invest US$17 million to enhance equipment at the Notre-Dame-de-Briançon and Lannemezan sites in order to rapidly meet the needs of its cathode products customers.

 "This investment underlines Alcan's commitment to strengthening its carbon products activities and to consolidating its position in this market to rapidly meet the increasing needs of its customers," said Jean-Philippe Puig, President, Alcan Primary Metal, Europe and Cameroon.

The investment will result in the conversion of the anode baking furnace at the Lannemezan site as well as the installation of a cathode machining line which will lead to greater graphitizing capacity at Notre-Dame-de-Briançon. It will also rapidly increase cathode production capacities starting in late 2008. Before moving forward with this project the Company must first complete required legal procedures and obtain necessary administrative and environmental permits.

Jean-Pierre Cleirec, CEO of Carbone Savoie stated that "Carbone Savoie is dedicated to meeting the growing demand for cathode products. This initiative demonstrates our desire to remain present in all of the carbon market segments and to consolidate the activities at Notre-Dame-de-Briançon and Lannemezan."

Carbone Savoie, a global leader in the cathode products market, already operates two production sites and a research centre in France. The investment in the production site at Lannemezan will create approximately 70 jobs.

Carbon Savoie is recognized for its technical expertise and the quality of its products. In 2006, it had revenues of US$ 120 million and employs close to 500 people.

Alcan Inc. (NYSE, TSX: AL) is a leading global materials company, delivering high quality products and services worldwide. With world-class technology and operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminium fabrication, engineered solutions as well as flexible and specialty packaging today's Alcan is well positioned to
meet and exceed its customers' needs. Alcan is represented by 68,000 employees, including its joint ventures, in 61 countries and regions, and posted revenues of US$23.6 billion in 2006. The Company has featured on the Dow Jones Sustainability World Index consecutively since 2003.

Statements made in this press release which describe the Company or management's objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of securities laws. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and that the Company's actual actions or results could differ materially from those expressed or implied in such forward-looking statements or could affect the extent to which a particular projection is realized. Reference should be made to the Company's most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K for a list of factors that could cause such differences.