Aluminium Bh.s Regulatory News (ALBH)

Alba's Board of Directors applaud the encouraging financial results for the year 2010

·; Alba's Board of Directors held its first quarterly meeting on Monday, February 28, 2011 at the Gulf Hotel, Bahrain.

·; Alba's Board of Directors gave its approval to the full year and fourth quarter results for 2010.

·; Alba's Board of Directors reviewed reports on corporate governance and the management, and was given updates on various on-going projects.

Aluminium Bahrain B.S.C. (Alba)'s Board of Directors praised the initiatives taken by the Alba management in steering the company towards greater productivity and increased profitability in the face of strong recovery experienced by the aluminium industry in 2010, according to a statement issued by the Chairman of Alba's Board of Directors, Mahmood Hashim Al Kooheji, following the first quarterly meeting of the Board of Directors on Monday, February 28, 2011 at the Gulf Hotel, Bahrain.

The Board further expressed confidence that the company will continue to demonstrate its commitment to achieve operational efficiency, global competitiveness and increased transparency.

The Board also approved the full year and fourth quarter results for 2010, which were tabled by Alba's Chief Executive, Laurent Schmitt and Alba's Chief Financial Officer, Tim Murray. The sales figures reached US$ 1,997 million in 2010 as compared to US$ 1,550 in 2009 while net income was US$ 368 million in the same year as against a loss on US$ 220 million in 2009. EBITDA was at US$ 552 million in 2010 as compared to US$ 203 million in 2009. Cash returned to shareholders during 2010 was US$ 238 million as compared to US$ 56 million in 2009.

The Board announced its recommendation to distribute cash dividends at 54.39% of the total paid up capital of the company (excluding treasury shares), which is 53 fils per share, to the shareholders who are appearing in the company's register of shareholders as at the Annual General Meeting (AGM) scheduled to be held on Wednesday, March 30, 2011. This recommendation of cash dividend distribution is subject to the regulators' and shareholders' approval at the AGM.

The Chairman of Alba's Board of Directors, Mahmood Hashim Al Kooheji said:

"Alba remains firmly positioned in gaining global leadership in the aluminium industry as the company capitalises on the opportunities available through the recovery of demand for aluminium in 2010. There has been an increased focus on expanding the global footprint of Alba's portfolio of high-value aluminium products, greater emphasis on continuous improvement processes, and in delivering results to our growing list of shareholders who have keenly demonstrated their trust in Alba's ability to maintain and exceed growth targets.

"The encouraging results of the full year and fourth quarter 2010 indicate that the company remains on track in meeting some of its plans for expansion and in bolstering overall organisational performance. I like to congratulate both the Alba management and employees in the successes gained in 2010, and am positive that through greater collaborative efforts, we will experience many more achievements in 2011."

The Board reviewed the Alba Vision growth presented by the management.

A performance self assessment for 2010 was also undertaken during the meeting.

The Board reviewed the Corporate Governance report, the Management report as well as reports prepared by the Board Audit Committee and the Human Resources Committee. Updates were presented on the status on the major raw materials and the "Alba Star" project aimed at improving competitiveness and operational and financial performance.

The Alba Board of Directors comprises six directors appointed by Bahrain Mumtalakat Holding Company, which in addition to the Chairman of the Board, Mr. Al-Kooheji, include Fawzi Ahmed Kanoo, Yusuf Abdulla Taqi, Shaikh Mohammed bin Khalifa Al Khalifa, Osama Mohammed Al Arrayedh, and David Meen. The two directors appointed by Sabic Industrial Investments Company are Mutlaq H. Al Murished andHumood Abdulla Al Towaijri, and the independent director, Abdul Aziz Al Humaid.

The meeting was attended by Alba's Chief Executive, Laurent Schmitt, Alba's Chief Financial Officer, Tim Murray, Alba's Chief Supply Chain Officer and Acting Chief Operations Officer, Isa Al Ansari, Chief Marketing Officer, Jean Baptiste Lucas, and other company officials.

Alba Chairman Mahmood Hashim Al Kooheji expressed his sincere thanks and appreciation to the Government of Bahrain, led by His Majesty King Hamad bin Isa Al Khalifa, His Royal Highness the Prime Minister Prince Khalifa bin Salman Al Khalifa, and His Royal Highness the Crown Prince and Chairman of the Bahrain Economic Development Board, Prince Salman bin Hamad Al Khalifa.

Mr. Al Kooheji also expressed his gratitude for the continuous support of the Kingdom of Saudi Arabia and the Custodian of the Two Holy Mosques King Abdullah bin Abdul-Aziz Al Saud. He also thanked the Bahrain Mumtalakat Holding Company, Sabic Industrial Investments Company and all their representatives for their contributions to Alba's success.

The Board expressed thanks and appreciation to the Senior Executive Management Team, the managers, Alba employees and their representatives in the Alba Labour Union for their continuing hard work, and their constant support to improve and develop the company's operations, which is highly valued by the members of the Alba Board.

ENDS

Note:

Alba has been consistently ranked as one of the largest aluminium smelters in the world, and is known for its technological strength, global competitiveness and innovative policies. Alba produces more than 860,000 metric tonnes per annum of aluminium which meet or exceed the industry standard for purity, with products including standard and T-ingots, extrusion billets, rolling slab, propertzi ingots, and molten aluminium. It has also maintained a strong track record of operational safety and environmental compliance.

For further details, please contact Public Relations Officer, Ashish B. Gorde

Tel: (973) 17 833998 (direct)(973) 39 029237 (mobile)

Fax: (973) 17 833822

E-mail: ashish.gorde@alba.com.bh