Novelis Announces New Pricing Structure For North American Products

ATLANTA, Nov. 4 /PRNewswire-FirstCall/ -- Novelis Inc. (NYSE: NVL; Toronto) announced today that it will introduce a new pricing structure in North America for its shipments of products into the building and construction, general industrial, transportation, automotive and foil markets beginning January 2006 for all new business.

The new pricing model will have a quarterly freight cost adjustment that is tied to fleet operations and fuel-related shipping costs. This approach will separate the metal conversion pricing for orders from freight rates -- a shift from the standard in the aluminum rolling industry today. The pricing structure will apply to direct sales as well as sales to third-party metal distributors.

"Over the last several years, North American manufacturers have been challenged by escalating operational costs due to rising fuel and fleet transportation costs," stated Kevin Greenawalt, President, Novelis North America. "For Novelis, the separation of shipping costs from our fabrication conversion price is consistent with the Novelis business model, where our focus is on value creation in conversion."

"Our new pricing structure will allow for transparent shipping costs for both our customers and Novelis," added Greenawalt. "This will enable us to work in partnership with our customers to optimize freight solutions."

Novelis will adjust customers' shipping charges quarterly relative to any changes in fuel surcharges and actual fleet operating costs of shipping goods. This pricing adjustment will reflect either increases or decreases in costs, and will be in effect for all stock business and new contract business for 2006.

Novelis, which was spun off by Alcan 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 unique ability to provide its customers with a regional supply of high-end rolled aluminum throughout Asia, Europe, North America, and South America. Through its advanced production capabilities, Novelis supplies aluminum sheet and foil to automotive, transportation, beverage and food packaging, construction, industrial and printing markets. Please visit www.novelis.com for more information.

SOURCE Novelis Inc.
11/04/2005
CONTACT: Media, Pat Persico, +1-440-423-6522, or Investors, Holly Ash,
+1-404-814-4212, both of Novelis Inc.
Web site: http://www.novelis.com
(NVL)

Released November 4, 2005