Novelis Obtains Waivers From Lenders

ATLANTA, May 16 /PRNewswire-FirstCall/ -- Novelis Inc. (NYSE: NVL) (TSX: NVL) today announced that, as requested, its lenders have agreed to waive Novelis' non-compliance with the provision of its January 7, 2005, Credit Agreement that requires the Company to furnish timely consolidated financial statements in the 2005 Annual Report on Form 10-K and the Form 10-Qs for the first, second and third quarters of 2006. This waiver extends until September 29, 2006, the deadline for filing the Annual Report for 2005. The quarterly filings for the first, second and third quarters of 2006 must be completed by October 31, 2006, November 30, 2006, and December 29, 2006, respectively. The waiver also extends until June 15, 2006, the deadline for filing the third quarter of 2005, and the re-stated first and second quarters of 2005.

On May 5, 2006, the Company applied to the Ontario Superior Court of Justice for an order extending the time for holding the annual meeting date to a date not later than December 31, 2006. Novelis received the order on May 9, 2006, allowing it to extend the date. The Company is currently evaluating the time that will be required to complete, print and mail its 2005 Annual Report. Once this analysis is finalized, the Company will announce the new date for the annual meeting and record date.

Novelis is the global leader in aluminum rolled products and aluminum can recycling. The Company operates in 11 countries and has approximately 13,000 employees. Novelis has the unrivaled capability to provide its customers with a regional supply of technologically sophisticated 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 http://www.novelis.com.

SOURCE Novelis Inc.

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

Released May 16, 2006