Alro reports net profit of RON 35 million for the first half of 2009

• Turnover of RON 718.7 million (USD 226 million*)
• Net profit of RON 35.3 million (USD 11 million*)
• Primary aluminium sales of 115,397 tonnes
• Flat rolled products sales of 12,256 tonnes
• Inventories down by RON 220 million (USD 69 million*)
• Indirect production costs down over 40% compared to the 2009 budget

Slatina, 13 August, 2009 – Alro SA (BSE: ALR), the largest aluminium producer in Central and Eastern Europe, today announces its financial results of the first half of 2009, ended 30 June 2009, according to Romanian Accountancy Standards. The Company reported a net profit of RON 35.3 million (USD 11 million*), and a turnover of RON 718.7 million (USD 226 million*). Alro’s total primary aluminium sales for H1 2009 were 115,397 tonnes, while flat rolled products sales reached 12,256 tonnes.

The financial results for H1 of 2009 reflect the cost reduction strategy implemented by the Company at the end of last year, which focused on core activities and services, relevant business assets and high levels of product quality. The Company also implemented programmes for the reduction of consumption of raw materials, energy and gas. As a result, the indirect production costs were reduced by over 40% compared to the 2009 budget.

As part of its strategy to address the market situation, Alro limited its investments to projects already in progress, mainly focusing on increasing product quality and the output of flat rolled products. The Company budgeted a total of USD 6 million for investments in 2009. In the first half of this year, the total amount of investments made reached USD 2.65 million and were directed towards projects with the aim of increasing production capacity, upgrading equipment, reducing industrial water consumption and improving working conditions. This year, Alro commissioned its annealing furnace with inert gas. The new furnace improves the surface quality of Alro’s aluminium and the reliability of the mechanical properties of the company’s flat rolled products.

Addressing the market conditions, the Company continued to work at 75% of its capacity, after reducing aluminium production by approximately 25% and reduced its inventories by RON 220 million. As a result of the cost saving actions, Alro is now using 3 TWh of electricity for producing aluminum. The electricity is guaranteed by the Company's long term contract with a supplier. Alro uses the entire electricity it has contracted strictly in the production process and current activity of the Group in Romania.

In the latter part of the first half, the demand and price of aluminium showed signs of slight recovery, with the aluminium price at around USD 1,600/tonne at the end of June 2009. The average price for aluminium on LME was USD 1,423/tonne for H1 2009, compared to USD 2,836/tonne, in H1 2008. Therefore, Alro will continue to closely monitor the aluminium market and is prepared to take all necessary measures to respond to international trends.

Commenting on H1 2009 results, Marian Nastase, Vice President of the Board of Alro said:

“Alro implemented a strong programme aimed at counteracting the consequences of the economic downturn and responded promptly and proactively by adapting production and cutting costs. The financial results for the first half of 2009 show Alro’s commitment to maintaining viability under difficult market conditions. Our strategy allowed us to reduce production costs and inventories and to keep the Company profitable despite the slowdown of the international economy.

At this point, we are noticing some signs of slight recovery in the market and, provided no further unexpected deteriorations occur, this progressive improvement should continue. We remain confident our strategy will further help us in addressing the current economic situation whilst enabling us to take advantage of the demand increase, once the market picks up.“

*Average exchange rate for H1 1USD = 3.18 RON