1304280--8/25/2006--Novelis

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Our results can be negatively impacted by timing differences between the prices we pay under purchase contracts and metal prices charged to our customers. Our operations consume energy and our profitability may decline if energy costs were to rise, or if our energy supplies were interrupted. We may not have sufficient cash to pay future dividends and repay indebtedness and we may be limited in our ability to access financing for future capital requirements, which may prevent us from increasing our manufacturing capability, improving our technology or addressing any gaps in our product offerings. We have a substantial amount of indebtedness, which could adversely affect our business and therefore make it more difficult for us to fulfill our obligations under our senior secured credit facility and our 7 1 / 4 % Senior Notes due 2015. The covenants in the senior secured credit facilities and the indenture governing the Senior Notes impose significant operating and financial restrictions on us. We could face material adverse consequences under covenants in our Senior Notes and our senior secured credit facilities as a result of our late SEC filings. We could face additional adverse consequences as a result of our late SEC filings. We will be subject to higher interest rates under our Senior Notes until we can complete a registered exchange offer. A deterioration of our financial position or a downgrade of our ratings by a credit rating agency could increase our borrowing costs and our business relationships could be adversely affected. Adverse changes in currency exchange rates could negatively affect our financial results and the competitiveness of our aluminum rolled products relative to other materials. Most of our facilities are staffed by a unionized workforce, and union disputes and other employee relations issues could materially adversely affect our financial results. Our operations have been and will continue to be exposed to various business and other risks, changes in conditions and events beyond our control in countries where we have operations or sell products. We could be adversely affected by disruptions of our operations. We may not be able to successfully develop and implement new technology initiatives in a timely manner. Loss of our key management and other personnel, or an inability to attract such management and other personnel, could impact our business. If we fail to establish and maintain effective disclosure controls and procedures and internal control over financial reporting, we may have material misstatements in our financial statements and we may not be able to report our financial results in a timely manner. We may not be able to adequately protect proprietary rights to our technology. Past and future acquisitions or divestitures may adversely affect our financial condition. We could be required to make unexpected contributions to our defined benefit pension plans as a result of adverse changes in interest rates and the capital markets. We face risks relating to certain joint ventures and subsidiaries that we do not entirely control. Our ability to generate cash from these entities may be more restricted than if such entities were wholly owned subsidiaries. Risks Related to Operating Our Business Following Our Spin-off from Alcan We have a limited operating history as an independent company and we may be unable to successfully operate as an independent company in the future. Our agreements with Alcan do not reflect the same terms and conditions to which two unaffiliated parties might have agreed. We have supply agreements with Alcan for a portion of our raw materials requirements. If Alcan is unable to deliver sufficient quantities of these materials or if it terminates these agreements, our ability to manufacture products on a timely basis could be adversely affected. We may lose key rights if a change in control of our voting shares were to occur. We could incur significant tax liability, or be liable to Alcan, if certain transactions occur which violate tax-free spin-off rules. We may be required to satisfy certain indemnification obligations to Alcan, or may not be able to collect on indemnification rights from Alcan. We may have potential business conflicts of interest with Alcan with respect to our past and ongoing relationships that could harm our business operations. Our agreement not to compete with Alcan in certain end-use markets may hinder our ability to take advantage of new business opportunities. Our historical financial information may not be representative of results we would have achieved as an independent company or our future results. We expect to spend significant amounts of time and resources building a new brand identity. As we build our information technology infrastructure and complete the transition of our data to our own systems, we could experience temporary interruptions in business operations and incur additional costs. Risks Related to Our Industry We face significant price and other forms of competition from other aluminum rolled products producers, which could hurt our results of operations. The end-use markets for certain of our products are highly competitive and customers are willing to accept substitutes for our products. A downturn in the economy could have a material adverse effect on our financial results. The seasonal nature of some of our customers industries could have a material adverse effect on our financial results. We are subject to a broad range of environmental, health and safety laws and regulations in the jurisdictions in which we operate, and we may be exposed to substantial environmental, health and safety costs and liabilities. We may be exposed to significant legal proceedings or investigations.

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1304280--8/25/2006--Novelis_Inc.