MONTREAL, Canada, Dec. 29 /PRNewswire-FirstCall/ - Alcan Inc. (NYSE, TSX:
AL) announced today that it has entered into a binding agreement for the sale
of its controlling interest in Aluminium de Grece S.A. (ADG) to Mytilineos
Holdings S.A. of Greece for euro 6.95 per share. Both parties have also agreed
that Alcan will continue to provide a broad range of technical assistance and
industrial services to ADG.
    "This transaction is the best value-creating alternative for Alcan and it
will also contribute to the long-term stability of ADG," said Cynthia Carroll,
President and Chief Executive Officer of Alcan Primary Metal Group.
    Alcan owns approximately 12.9 million shares in ADG, representing a 60.2%
equity interest. Under the terms of the agreement, Mytilineos Holdings and
certain affiliated companies will be acquiring from Alcan a 53% equity
position in ADG. The acquisition of this 53% interest is not expected to
trigger a mandatory tender offer by Mytilineos Holdings for the outstanding
shares of ADG under relevant securities regulations.
    The balance of Alcan's interest in ADG, some 7.2%, may be sold by Alcan
to Mytilineos Holdings one year after closing pursuant to a three-month put
option. After that, Mytilineos Holdings will have a call option for six months
to purchase the remaining interest.
    "The acquisition of ADG, a leading industrial company in Greece, with a
dynamic and committed workforce, marks a significant step in the development
of our group," said Evangelos Mytilineos, Chairman of the Board of Mytilineos
Holdings S.A. "We will immediately get to work with ADG's management to
advance planned investments, of which the most urgent and important is the
co-generation energy unit, which will cover all of ADG's future needs in
electrical and thermal energy," he added.
    The sale of shares and completion of the transaction is subject to
approval from the competition authorities as well as the Greek Ministry of
Development. It is expected to close during the first quarter of 2005.
    Today's Alcan is a multinational, market-driven company and a global
leader in aluminum and packaging, as well as aluminum recycling. With world-
class operations in primary aluminum, fabricated aluminum as well as flexible
and specialty packaging, aerospace applications, bauxite mining and alumina
processing, Alcan is well positioned to meet and exceed its customers' needs
for innovative solutions and service. Alcan employs 88,000 people and has
operating facilities in 58 countries and regions.

    Mytilineos Holdings S.A. is a leading industrial group involved in,
metallurgy, energy and defense. Mytilineos Group is active internationally and
has, through the creation of strategic alliances throughout the greater
Southeast European region, taken a lead in many of these sectors in the
Balkans and beyond. As a result of these strategic actions, Mytilineos
Holdings S.A. has steadily expanded in all three areas of activity through
acquisitions and internal investments. ADG is expected to significantly
benefit from the synergies that these activities will find in ADG's
operations. With the above acquisition the Mytilineos Group employs in Greece
and abroad 4,500 people.

    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.

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