For Immediate Release
                                                          Contact: John L. Flynn
                                                         Chief Financial Officer
                                                                    703-478-5830
                                                     email: jflynn@fairchild.com


The Fairchild Corporation [NYSE: FA] Agrees to Sell Fairchild Fasteners to Alcoa
for $657 million


Dulles, Virginia (July 16, 2002) - The Fairchild Corporation (NYSE: FA)
announced today that it signed a definitive agreement to sell its Fairchild
Fasteners business for approximately $657 million in cash to Alcoa Inc. (NYSE:
AA). The actual cash to be received from Alcoa is dependent upon a post-closing
adjustment based on net working capital at the closing date. Fairchild may also
receive additional cash proceeds up to $50 million, in an earnout formula based
on the number of Boeing and Airbus commercial aircraft deliveries during
2003-2006. The sale, which is expected to close before November 30, 2002, is
subject to customary conditions, including regulatory approvals and the approval
of Fairchild's shareholders.

Jeffrey Steiner, Chairman and Chief Executive Officer of The Fairchild
Corporation, stated: "In these uncertain times, this sale will allow Fairchild
to lessen our dependency on a single industry, significantly reduce our debt and
provide funds for new acquisitions."

The Fairchild Corporation will use a portion of the proceeds from the sale to
repay its bank debt and commence a tender offer at par to acquire all of its
outstanding $225



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million, 10:75% senior subordinated notes, due in April, 2009. This tender offer
will close concurrently with the closing of the sale to Alcoa.

Fairchild Fasteners manufactures and supplies precision fastening systems used
in the construction and maintenance of commercial and military aircraft.
Fairchild Fasteners has manufacturing facilities, as well as sales/design
customer teams, in the United States, Germany, France, Portugal, Hungary,
Australia and the United Kingdom.

Eric Steiner, President of The Fairchild Corporation, said: "In both the near
and long term, this transaction will greatly benefit those who have partnered
with us to build the Fairchild Fasteners business: our customers, suppliers and
employees."

About The Fairchild Corporation

The Fairchild Corporation is engaged in the aerospace distribution business
which stocks and distributes a wide variety of aircraft parts to commercial
airlines and aerospace companies providing aircraft parts and devices to
customers worldwide. The Fairchild Corporation also owns and operates a shopping
center located in Farmingdale, New York.

This news release may contain forward-looking statements within the meaning of
Section 27-A of the Securities Act of 1933, as amended, and Section 21-E of the
Securities Act of 1934, as amended. The Company's actual results could differ
materially from those set forth in the forward-looking statements, as a result
of the



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risks associated with the Company's business, changes in general economic
conditions, and changes in the assumptions used in making such forward-looking
statements.