Alro reports net profit of RON 238.7 million for the six months ended 30 June 2007.

Slatina, August 15th 2007 – The aluminium producer Alro Slatina (BVB: ALR) today announces its financial results for the six months ended 30 June 2007. The Company reported net profit of RON 238.69 million, a 16% increase compared to the same period in 2006. Revenues reached RON1.1 billion. Primary aluminium production increased by 9,090 tonnes reaching 138,882 tons.

Since 2002, Alro has invested over USD150 million in technological and environmental projects, resulting in a production increase of approximately 40%, from 187,000 tpa in 2002 to 262,000 tpa in 2006. In the first six months of 2007, the Company invested approximately USD 25 million in technological and environmental projects. The Company also implemented a program of cost reductions in order to maintain its competitiveness in the international market.

Alro started vertically integrating its operations to develop its production chain to include raw materials, finished products and retail, thus reducing production costs. Raw material and consumable material costs decreased by over RON 21 million, from RON 363 million in H1 of 2006, to RON 342 million in the first half of 2007.

The Company also invested in technology and programs to reduce electricity consumption from 14,180 kWh / tonne of aluminium in 2003, to 13,163 kWh / tonne of aluminium in 2006. Electricity and water costs increased by RON 46.5 million in the first six months of this year, compared to the same period of 2006.

Commenting on the results, Christian Wuest, President of Alro Slatina, said:

“Alro’s financial results for the first half of this year demonstrate that we are delivering our strategy to develop the business through increasing production capacity and emphasising of value-added aluminium products to meet the increasing demand for these products.”

“We benefited from continued strong demand for aluminium. In the first half of this year, the international market continued its positive development, with LME prices around USD 2800 per tonne, as compared to an average of USD 2500-2600 per ton, in the same period of last year”, said Wuest.