Key questions and answers from the second quarter fiscal 2007 earnings call conducted by Alcoa Inc on July 9, 2007.

Kuni Chen (Banc of America Securities): Do you envision the upstream project pipeline changing substantially if Alcan and Alcoa merge?

Alain Belda: No, the organic opportunities for the new company are the same. The opportunities continue to be in aerospace, transportation, marine, building and construction and packaging are the same in all fields.

Kuni Chen: Do you think that the growth potential is the same, whether it's a combined company or whether they are separate?

Alain Belda: The areas of opportunity are the same. The ability to do the right investment, if you're talking about upstream. On upstream, the opportunities are also to improve the risks that are inherent to the choices that we have to make as we look for energy around the world and decide where we're going to invest. Every plant is a major capital expenditure, they cost over $2 billion. The political risk of every decision is different. It permits us to optimize investment decisions, location decisions and also permits us to choose to expand on brownfield opportunities rather than greenfield opportunities.

David Martin (Deutsche Bank): There's been a lot of press and trade reports about yours as well as the industry's inability to supply fasteners to Boeing. Can you comment on the issue?

Chuck McLane: The backlog is significant and the deliveries are beyond anybody's estimates for this year. Certainly what came out of the Paris Airshow was beyond the expectations as well. Fasteners are one of the things that have been listed as something of a supply chain issue to deal with. We're working with our customers on a day-by-day basis to fulfill all of their requirements, and we have capacity that is being increased in certain locations in order to help meet those demands.

John Tumazos (John Tumazos Independent Research): If for the September and December quarters the exchange rates and energy prices and outlooks were exactly as today and exactly as you described, how much higher would your cost per unit be on average in the third and fourth quarters?

Chuck McLane: Energy has a lot to do with us on rain in the third quarter. That's why we list it as a seasonal cost to us. But on the exchange rate side, it changes quarter to quarter. As a rule of thumb, if you've got a 1% change in the value of the dollar to other major currencies, it's about 2 cents a share.

Greg Barnes (TD Newcrest): Can you give any clarification on what the next steps are for the European competition authorities and what timing might look like?

Alain Belda: This is the way it goes. You are going to have to submit the application once they comment on the draft application we made. They are going to be working with the US DoJ as they normally do and this process will follow the normal process like you've seen many of those before. It just continues to go on, and we will answer the questions. There's nothing new here. We don't have a timeframe.

Rob Clifford (ABN Amro): Can you provide an update on Iceland? You mentioned about the massive capital costs in putting in greenfield smelters and political risks. Could you outline some of the things you've learned about securing power and what has gone on there, and how that is progressing in terms of the ramp-up?

Chuck McLane: Securing the power, we are perfectly satisfied with the situation in Iceland from a hydro standpoint and a power standpoint. Some of the costs that we incurred were higher construction costs that most everyone else has been incurring during the ramp-up stage of that smelter being built. But even with conservative metal prices and the capital costs that we have, where they are placed on the cash cost curve and what return we will earn over the long term, we're still totally satisfied with.

Rob Clifford: Has the power has come on stream as you expected?

Chuck McLane: No. The power is not coming on stream. I thought you were referring to cost of the hydro project. It is a delay. We're working on temporary power right now and we're working with the authorities there that run the power project to get it up into a permanent situation as quickly as possible. We think that's going to be building up during the fourth quarter, and we still anticipate that next year we will get the full capacity out of that facility.

Tony Rizzuto (Bear Stearns) With regard to the European regulatory environment, would you be prepared to divest ESWA if required to do so?

Chuck McLane: We will have to decide what we divest as we get the questions. We are not prepared to start negotiating or talking about that at this point in time.

Tony Rizzuto: You mentioned improved performance in Russia. Could you quantify what that may have been in terms of the numbers and give a little detail on that in the quarter?

Chuck McLane: If you looked at the reconciliations that we have, you would see that Russia, China, in Bohai and Kunshan had a loss of about $30 million last quarter, and it and down to about $15 million this quarter. You can assume most of that improvement was Russia.