ATLANTA, Nov 07, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Novelis Inc. (NYSE: NVL) (TSX: NVL), today announced the planned restatement of its first and second quarter 2005 results and a corresponding delay in the issuance of its third quarter results pending review of reserves and contingencies as well as adjustments made to arrive at its opening balance sheet as of January 6, 2005. The Company will extend today until December 7, 2005 its offer to exchange up to $1.4 billion aggregate principal amount of its 7-1/4% Senior Notes due 2015, which were initially issued and sold in a private placement on February 3, 2005, for an equal aggregate amount of its registered 7-1/4% Senior Notes due 2015. The original expiration date of the exchange offer was October 31, 2005, and was extended on November 1, 2005 until November 8, 2005. As of the close of business on October 31, 2005, $1,398,514,000 of the old notes had been tendered for exchange. As a result of this extension, the Company will accrue, beginning November 11, 2005, and until the exchange offer closes, a special interest rate on the Senior Notes. This special interest rate will equal an additional 0.25% per annum. The rate of special interest increases 0.25% during each subsequent 90-day period until the exchange offer closes, with the maximum amount of additional special interest at a rate of 1.00% per annum. The Company expects to file a post-effective amendment and third quarter financial statements. The Company expects to continue extending the expiration of the exchange offer until after the post-effective amendment becomes effective.

Except for the extension of the expiration date, all of the other terms of the exchange offer remain as set forth in the exchange offer prospectus dated September 27, 2005. This press release is not an offer to exchange new notes for the old notes or the solicitation of an offer to exchange. Any offer will be made by Novelis Inc. only by means of the exchange offer prospectus.

Any holder of the old notes, who would like to obtain copies of the prospectus and related documents, or with questions regarding the exchange offer, should contact Novelis Inc.'s exchange agent, The Bank of New York Trust Company, N.A., at (212) 815-5098.

Novelis, which was spun-off by Alcan Inc. on January 6, 2005, is the global leader in aluminum rolled products and aluminum can recycling. The company has 36 operating facilities in 11 countries and more than 13,000 employees. Novelis has the unparalleled capability to provide its customers with a regional supply of high-end rolled aluminum products throughout Asia, Europe, North America, and South America. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. For more information, visit www.novelis.com.

Statements made in this news release which describe Novelis' intentions, expectations or predictions (e.g., the amount of charges we expect to incur) may be forward-looking statements within the meaning of securities laws. Novelis cautions that, by their nature, forward-looking statements involve risk and uncertainty and that Novelis' actual results could differ materially from those expressed or implied in such statements. Reference should be made to Novelis' annual report on Form 10-K and its other filings with the Securities and Exchange Commission for a discussion of major risk factors in addition to the factors set forth in this press release.

SOURCE Novelis Inc.

Media, Charles Belbin, +1-404-814-4260, or
charles.belbin@novelis.com, or
Investors, Holly Ash, +1-404-814-4212, or
holly.ash@novelis.com,
both of Novelis

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