Goodwill Accounting Change

RNS Number:9351X
Alcan Inc
28 June 2002

Press Release

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FOR IMMEDIATE RELEASE



ALCAN REAFFIRMS SECOND QUARTER OPERATING EARNINGS OUTLOOK AND DETAILS CHANGE IN
                            ACCOUNTING FOR GOODWILL

Montreal, Canada - June 28, 2002 - Alcan Inc. (NYSE, TSE: AL) today reaffirmed
that second quarter operating earnings (excluding non-recurring items and
foreign currency balance sheet translation effects) are expected to be at the
upper end of its previously disclosed guidance of US$0.35 to US$0.45 per common
share. While the LME price has remained relatively stable during the second
quarter, recent strengthening of the Canadian dollar is expected to result in
significant non-operating currency translation effects for the quarter.


New standards for the accounting of goodwill and other intangible assets have
been in effect since January 1, 2002. Under these standards, the Company has
completed a review of goodwill and will be recording an impairment charge of
US$748 million. The adjustment reflects the decline in end-market conditions in
the period from the algroup merger in October 2000 to January 1, 2002. This
adjustment will have no impact on the future growth of the Company, nor will it
affect its cash flow. Under Canadian generally accepted accounting principles,
the change will be reflected as a reduction in the opening retained earnings on
the balance sheet as of January 1, 2002.


Alcan is a multinational, market-driven company and a global leader in aluminum
and specialty packaging with 2001 revenues of US$12.6 billion. With world-class
operations in primary aluminum, fabricated aluminum as well as flexible and
specialty packaging, Alcan is well positioned to meet and exceed its customers'
needs for innovative solutions and service. Alcan employs 48,000 people and has
operating facilities in 38 countries.


Statements made in this press release which describe the Company's intentions,
expectations or predictions may be forward-looking statements within the meaning
of securities laws. The Company cautions that, by their nature, forward-looking
statements involve risk and uncertainty and that the Company's results could
differ materially from those expressed or implied in such statements. Reference
should be made to the most recent Form 10-Q for a summary of major risk factors.


                                      -30-




Media Contact:                Marc Osborne                     +1 (514) 848-1342

Investment Community Contact:     Jo-Ann Longworth             +1 (514) 848-8368






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            The company news service from the London Stock Exchange

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