PITTSBURGH — Alcoa and Fujikura, Ltd. of Japan have signed a letter of intent to split ownership of the businesses run under the companies’ joint venture — Alcoa Fujikura Ltd. Through the agreement, Alcoa will take complete ownership of the AFL automotive business based in Detroit, Mich., and Fujikura will obtain complete ownership of the AFL telecommunications business, based in Nashville, Tenn. Alcoa and Fujikura currently hold a 51-49 percent, respective ownership of both through the Alcoa Fujikura Limited joint venture.

AFL Automotive designs, develops and produces electrical and electronic distribution systems for personal and commercial vehicles. AFL connects with vehicle manufacturers and their sub-suppliers in the major automotive centers of the world, including China, Japan, Asia, Europe and the USA. AFL Automotive has approximately 34 locations in 15 countries and 33,500 associates around the world.

According to Robert Alexander, Alcoa vice president and chairman of Alcoa Fujikura Ltd, this new agreement will enable both businesses to focus on their core capabilities. “AFL Automotive is a large part of Alcoa’s approximately $3 billion automotive franchise, and this transaction increases our position in this strategic market, helping us serve our automotive customers globally,” said Alexander.

The transaction moving Alcoa to complete ownership of AFL Automotive, which is expected to be implemented through a share exchange by Fujikura of all of its AFL shares for all shares in a new telecommunications subsidiary, including cash, should be completed by the Spring of 2005. For financial reporting purposes, Alcoa will include AFL Telecommunications in discontinued operations until the transaction is completed.

For more information, visit: www.alcoa.com.

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