Kaiser Aluminum Announces Anticipated Shut-down of Anglesey Smelter Operations in September 2009 and Resulting Impairment

Kaiser Aluminum Corporation KALU today announced that it expects Anglesey Aluminium Metal (“Anglesey”), jointly owned by Kaiser and Rio Tinto Alcan, to fully curtail its smelting operations at the end of September 2009 when its current power contract expires. As the Company has previously discussed, Anglesey has worked intensively with U.K. government authorities and agencies to find a sustainable alternative to the power supply needs of the smelter, but has been unable to reach a feasible solution. In light of the expected curtailment, the Company believes it is appropriate to fully impair the asset at this time. In the interim, Anglesey will continue to pursue alternative sources of affordable power; however, no sources have been identified thus far that would enable the uninterrupted continuation of smelting operations. In addition, Anglesey will evaluate alternative operating activities in line with the needs of the local community and market opportunities, including the potential continuation of remelt and casting operations and the production of anodes for use by other smelting facilities. It will also work with partners, stakeholders and the community to further support the development of economic activities in the area. The Company expects to fully impair its 49% equity investment in Anglesey in its 2008 fourth quarter results, taking into account Anglesey’s inability to obtain affordable power, the resulting expected curtailment of smelting operations and the growing uncertainty with respect to the future of Anglesey’s operations. The Company does not expect to recognize current or future operating results from Anglesey unless it can determine those results will be recoverable. Kaiser Aluminum’s investment in Anglesey was $37.6 million as of September 30, 2008. Neither the curtailment of smelting operations nor the related impairment is expected to require the Company to make future cash investments in Anglesey. Kaiser Aluminum, headquartered in Foothill Ranch, Calif., is a leading producer of fabricated aluminum products, serving customers worldwide with highly-engineered solutions for aerospace and high-strength, general engineering, and custom automotive and industrial applications. The company’s North American facilities annually produce more than 500 million pounds of value-added sheet, plate, extrusions, forgings, rod, bar and tube products, adhering to traditions of quality, innovation and service that have been key components of our culture since the company was founded in 1946. The company’s stock is included in the Russell 2000® index. For more information, please visitwww.kaiseraluminum.com. Source: moneycentral.msn.com