Exhibit 99.1
For information: Scott Lamb
Telephone: (713) 332-4751 December 19, 2003
KAISER ALUMINUM RELUCTANTLY AGREES TO TERMINATION OF SALARIED EMPLOYEES
RETIREMENT PLAN
HOUSTON, Texas, December 19, 2003 -- Kaiser Aluminum said that it has been
notified by the Pension Benefit Guaranty Corporation (PBGC) that the PBGC
intends to assume responsibility for the Kaiser Aluminum Salaried Employees
Retirement Plan (KRP) as of December 17, 2003. After appropriate consultation
with its advisors, the Unsecured Creditors' Committee, the Asbestos Claimants
Committee, and certain other constituents, the company has reluctantly agreed to
the termination of the plan.
The Company has stated since the inception of its Chapter 11
reorganization proceedings that pension obligations were one of the significant
legacy factors that would have to be addressed during the reorganization
process. Further, the Company has stated that it did not expect to make any
pension contributions in respect of its domestic pension plans during the
pendency of the cases because it believes that virtually all of such amounts are
pre-petition obligations. In addition, the company also has previously stated
that termination of the pension plans was a possibility.
The PBGC action does not address seven other defined benefit plans
sponsored by the Company and thus does not resolve all the pertinent issues
surrounding the Company's material pension obligations. As previously disclosed,
the Company is discussing modification or termination of hourly retiree benefits
pursuant to collective bargaining with the appropriate union representatives.
Kaiser Aluminum (OTCBB: KLUCQ) is a leading producer of fabricated
aluminum products, alumina, and primary aluminum.
F-965
Company press releases may contain statements that constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. The company cautions that any such forward-looking statements are not
guarantees of future performance and involve significant risks and
uncertainties, and that actual results may vary materially from those expressed
or implied in the forward-looking statements as a result of various factors.
