Alcan's focused execution leads to record results in 2006 - Company delivering profitable growth


    - Alcan attained or surpassed each of its aggressive financial targets,
      posting record operating earnings and operating cash flow;

    - Announced a 10-year, US$1.8 billion investment program in Quebec's
      Saguenay-Lac St-Jean region;

    - Launched Alcan People Advantage as the fourth pillar of its Integrated
      Management System (AIMS);

    - Received international recognition from industry peers and some of the
      world's most prestigious organizations

    MONTREAL, April 26 /CNW Telbec/ - At its 105th annual meeting of
shareholders today, Alcan Inc. said 2006 was a year of significant achievement
with record earnings and the launch of a number of important growth
    "Alcan was able to capitalize on strong metal prices and growing end-use
markets to meet or exceed all of our key external financial targets in 2006,
while generating record earnings and operating cash flow," said Richard Evans,
President and Chief Executive Officer, Alcan Inc. "We are off to a record
start in 2007 and look forward with optimism to the balance of the year," he
    In 2006, Alcan's operating earnings per share were a record US$5.05
compared to US$2.44 in 2005, while income from continuing operations was also
a record US$4.75 per share compared to US$0.40 in 2005. The Company
experienced the best cash generation from continuing operations in its history
at over US$3 billion, while free cash flow was an outstanding US$690 million.
Alcan's debt-to-capital ratio was on target at 35% and operating return on
capital employed was 12.3% - the Company's best performance in 20 years.
    Alcan's strong performance improved the Company's ability to act on
attractive growth opportunities while simultaneously rewarding shareholders
with a 33% dividend increase and a share repurchase program.
    The year 2006 saw Alcan recognized - particularly for its efforts in the
area of social responsibility - by both peers and third-party observers.
Alcan's leadership earned it widespread recognition as the industry champion
for metals on Fortune Magazine's list of the "World's Most Admired Companies".
Alcan's leadership also attracted recognition from a number of other
prestigious organizations: the Company received the Robert W. Campbell award
for EHS excellence; the World Environment Center's Gold Medal for
International Corporate Achievement in Sustainable Development; and once again
was named as a "Super-Sector Leader" for 2006 on the Dow Jones Sustainability
    Alcan continued the positive performance from 2006 into the first quarter
of 2007 with new earnings records. First quarter operating earnings per share
were US$1.67 compared to US$1.26 a year earlier, while income from continuing
operations was also a record US$1.60 from US$1.12 in 2005. Cash flow from
operating activities in continuing operations was US$582 million - a
first-quarter record - compared to $362 million a year earlier.
Debt-to-invested capital was at an impressive 33% compared to 35% at the end
of 2006.

    Alcan Inc. (NYSE, TSX: AL) is a leading global materials company,
delivering high quality products 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 is represented by 68,000 employees,
including its joint ventures, in 61 countries and regions, and posted revenues
of US$23.6 billion in 2006. The Company has featured on the Dow Jones
Sustainability World Index consecutively since 2003. For more information,
please visit:

    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.

    %B NM %C 1 %D AGM 2007

For further information:

For further information: Media Contact: Anik Michaud, (514) 848-8151,; Investor Contact: Simon Ellinor, (514) 848-8368,

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