Key questions and answers from the first quarter fiscal 2008 earnings call conducted by Alcoa Inc. on April 7, 2008.

John Hill (Citigroup): How do you think about the long-term earnings power of the company in its current configuration if we were to take today’s energy prices, today’s currency complex and the future’s curve which is essentially flat? Do you believe that the company will be able to drive earnings significantly higher or are we dependent on waiting on a merely a higher commodity price?

Klaus Kleinfeld: I believe that there is a lot of potential inside of the company and that’s why we are clearly focusing on those three elements; profitable growth, as well as rigorous execution and the Alcoa advantage. Those three things together will unleash a lot of the earnings power that is there. There are a lot of critical factors when you focus on each one of the businesses, but we have got to be super careful in focusing on one of the business, mainly primary as I described the two most critical factors is quality bauxite supply. We are in the process of opening Juruti. Our footprint in the aluminum market is unmatched. We are in a very favorable position. On the smelting side, when you go into the power side, the most critical fundamentals on the smelting side, if you look back probably three to four years, there were a lot of people out there thinking that how difficult will it be for Alcoa to renew the power contracts and what you are seeing here, we stand by our commitment and we are able to pull this off and do it on a very, very competitive base. For the growth opportunities there’s more growth opportunities there that we can ever digest and that we ever want to digest so I am not concerned on that side. If I go to the very downstream and do a deep dive there in the same manner, look at the very hot industrial gas turbine market that is currently compensating for some of the other weaknesses. Frankly the issue there is we don’t have enough capacity. Every body is sold out. We will be happy to be able to produce more. It is more on us to make sure that we can ramp up our capacity that we can perform better on the innovation side with single crystal and other capabilities that we have there. I’m seeing a very positive future and we could go on and on and on, but can clearly see from what I’m saying that I see a lot of earnings power going forward.

Lloyd O'Carroll (Davenport & Co. of Virginia, Inc): Looking at the quarter, the North American can sheet, you have a price cap with one contract which may be two customers, with an Ingot price $1.30, $1.35 is a larger drag on earnings than Ingot at $1.10, given a cap on an unhedged basis. Was there an impact on the quarter from that contract or was it covered by hedging?

Charles McLane: It was an impact on the quarter as it has been every quarter that we’ve had those caps in place if you looked at the opportunity if those caps didn’t exist. It is only one contract remaining and it represents about 5%, down to a level of about 5% of our total aluminum shipments and that runs out at the end of 2009.

Harry Mateer (Lehman Brothers): Are you expecting capital expenditures to trend lower from 2008 or run at a flat rate from 1Q 2008?

Charles McLane: We had given some guidance earlier that it said that it would be around the $3 billion level heading into this year and that’s the stance that we’re on right now and we’re close to that level looking through the first quarter here. We’ve got two major projects going on right now as I articulated about the percent that it represented of our projects this year and that’s Sao Luis expansion and Juruti and I would expect it to be at at least these levels through the rest of this year.

Harry Mateer (Lehman Brothers): Given that CapEx is down slightly from 2007 levels, do you think that you’re going to be doing additional share buybacks?

Charles McLane: What we will do is to continue to manage our capital structure looking at all of our alternatives, whether its acquisitive growth or organic growth through projects or share repurchase and the like so we’ve got an authorized level of 25% and we continue to measure how much we’re going to do that on a quarter-by-quarter basis.

Charles Bradford (Soleil - Bradford Research): Could you talk more about the outages in China? I had heard originally that the weather problems and some power problems cost something like ten plants to be closed and that some are now in the process of coming back. What are you hearing?

Charles McLane: The information that we have is that it was a little more than ten plants and they were going to be down of varying degrees. Some that the pots weren’t frozen up and it wouldn’t take as much effort but the word is now that they’re making every effort to get those pots on line as quick as possible and our view was that it’s probably, if you looked at the scenario, it’s going to cost about, a constraint of about 550,000 tons is we had to take a guess at it right now because they’re in the process of coming back and probably will over the next few months.