Letter of Intent Signed for the EUR826m (GBP570m) Disposal of Corus' Aluminium Rolled Products and Extrusions Businesses to Aleris International Inc.

LONDON, March 16 /PRNewswire-FirstCall/ -- Corus Group plc (Corus) and Aleris International Inc. (Aleris) have today announced that they have signed a Letter of Intent for the proposed acquisition by Aleris of Corus' downstream aluminium rolled products and extrusions businesses for a gross consideration of EUR826m (GBP570m).

Corus' equity stakes in its Canadian and Chinese joint ventures are also included within the proposed transaction. Corus' smelting operations would remain within Corus and would supply Aleris under a long-term agreement. Corus and Aleris would also enter into an agreement related to research, development and technology.

Internal consultation and advice processes related to the transaction have commenced. It is intended that a Sale and Purchase Agreement would be entered into once these processes are completed. The proposed transaction would be subject to certain external regulatory clearances.

The net disposal proceeds, after deducting pension liabilities but excluding minority interests and net debt, would be approximately EUR728m (GBP502m). These proceeds would be used to further strengthen both the Group's balance sheet and the development of the carbon steel business.

Philippe Varin, Chief Executive of Corus said, "The proposed sale of the downstream aluminium operations to Aleris secures a strong future for these businesses, represents good value for Corus and is an important step in the Group's strategy."

Gerhard Buddenbaum, Divisional Director Aluminium said, " This is good news for our employees and customers. The two businesses complement each other and share the same strategic vision."

Notes to Editors

1. An exchange rate of EUR1.45 has been used in this announcement for illustrative purposes.

2. ABN AMRO and Credit-Suisse are advising Corus on this transaction.

3. Corus Group Plc is one of the world's largest metal producers with annual turnover of over GBP10 billion and major operating facilities in the U.K., the Netherlands, Germany, France, Norway and Belgium. Corus' four divisions comprising Strip Products, Long Products, Distribution & Building Systems and Aluminium provide innovative solutions to the construction, automotive, rail, general engineering and packaging markets worldwide. Corus has 47,300 employees in over 40 countries and sales offices and service centres worldwide. Combining international expertise with local customer service, the Corus brand represents quality and strength.

4. Aleris International Inc. is a major North American manufacturer of rolled aluminium products and is a global leader in aluminium recycling and the production of specification alloys. Aleris is also a leading manufacturer of value-added zinc products that include zinc oxide, zinc dust and zinc metal. Headquartered in Beachwood Ohio, a suburb of Cleveland, the Company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. For more information about Aleris please visit the website at http://www.aleris.com/.