Alcan Completes Sale of its Controlling Interest in Aluminium de Grèce

Alcan Inc. announced today that it has completed the sale of its controlling interest in Aluminium de Grèce (AdG) to Mytilineos Holdings S.A. and certain affiliated companies (Mytilineos). An agreement on the sale was announced December 29, 2004, and its completion follows the approval by the Greek Competition Commission and the Greek Ministry of Development.

"We are pleased to have completed this transaction and welcome the commitment demonstrated by Mytilineos toward AdG's long term success," said Cynthia Carroll, President and Chief Executive Officer, Alcan Primary Metal Group.

Alcan owned approximately 13 million shares in AdG, representing a 60.2 percent equity interest. Under the terms of the agreement, Mytilineos has acquired a 53 percent equity position in AdG from Alcan. The parties have also entered into various agreements to continue to supply certain products and services, including bauxite and a broad range of technical and industrial services, as well as the transfer of alumina supply contracts to Mytilineos and for the supply of alumina to Alcan. The total transaction value is (euro) 79.5 million (approximately US$107 million).

The balance of Alcan's interest in AdG, some 7.2 percent, may be sold by Alcan to Mytilineos one year after closing, pursuant to a three-month put option. After that, subject to certain conditions Mytilineos will have a call option for six months to purchase the remaining interest. If the option is exercised, the additional proceeds would be (euro) 10.8 million.

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