Alcan’s 2005 Actions Position Company for Bright Future

04/27/2006

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.

Montreal, Canada — 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.