FINANCIAL HIGHLIGHTS

·         Income from continuing operations of $1.12 per common share compared to a loss from continuing operations of $0.91 a year earlier and income from continuing operations of $1.21 in the third quarter;

·         Operating earnings of $1.09 per common share compared to $0.54 a year earlier and $1.22 in the third quarter.  Earnings include non-cash mark-to-market charges on derivatives of $0.17 per common share, as compared to charges of $0.11 a year earlier and gains of $0.03 in the third quarter;

·         Record cash from operating activities in continuing operations of $1.1 billion, up from $788 million a year earlier and $803 million in the third quarter;

·         9.8 million common shares repurchased, representing 52% of the total approved under the program;

·         Full-year records set for cash flow from operating activities of $3 billion, income from continuing operations of $4.75 per share and operating earnings of $5.05 per share.

MONTREAL, CANADA – January 31, 2007 – Alcan Inc. (NYSE, TSX: AL) today reported operating earnings of $1.09 per common share in the fourth quarter of 2006 compared to $0.54 a year ago and $1.22 in the third quarter.

“Excellent results across most businesses and record operating cash flow in the fourth quarter capped an outstanding year,” said Dick Evans, President and CEO. “Our financial performance in 2006 has been the strongest in the company’s history, benefiting from the discipline and rigour of Alcan’s management systems and taking full advantage of strong market conditions.  I am particularly pleased that this has allowed the company to deliver solid progress on growth, shareholder returns and debt reduction,” he continued.

“Looking to the year ahead, return on capital and cash generation remain our top priorities.  We will continue to focus on development of our growth pipeline while maintaining a balanced approach to capital allocation.  Primary aluminum and downstream market fundamentals remain broadly supportive, and we have good reason to be optimistic about the year ahead,” he concluded.