ALCAN AND CANADIAN AUTO WORKERS INK LABOUR DEAL FOR QUEBEC SITES.

(Full text of a statement. Contact details follow below.)

SAGUENAY, June 30 /CNW Telbec-AsiaNet/ --

Alcan Inc. (NYSE, TSX: AL)announced today that its Quebec employees represented by the Canadian Auto Workers (C.A.W.) union have ratified a new collective labour agreement by a 91.4 percent majority. The agreement will cover an initial five-year period with an additional four-year term available should Alcan decide to proceed with a major investment in the Complex Jonquire during the agreement's first term.

"Alcan is very pleased with the outcome of these productive, good-natured discussions and impressed by both parties' ability to reach an agreement well ahead of the December 31, 2006 deadline," said Cynthia Carroll, President and Chief Executive Officer, Alcan Primary Metal Group. "This agreement is critical to ensuring the competitiveness of the Complex Jonquire, and to securing long-term employment opportunities, by contributing to the right conditions needed to attract major investments to the Complex," she added.

The agreement provides for competitive annual wage increases based on a formula largely similar to that used by Alcan in Quebec since 1998, which compares wage increases across a group of Quebec's fifteen largest, unionized industrial companies. Historically, the average wage increase in Quebec's labour market has been approximately 2.5 to 3 percent per annum.

The agreement applies to C.A.W. employees at the Arvida, Beauharnois, Laterrire, Shawinigan and Vaudreuil Works sites, as well as those at Power Operations, Port Facilities, Alma Railway Operations and the Arvida Research and Development Centre (ARDC).

"I commend the excellent work ...