Aleris Reports Second Quarter Results

By Aleris International Inc., PRNE
Monday, September 13, 2010

BEACHWOOD, Ohio, September 14, 2010 - Aleris International, Inc. today reported results for the quarter ended
June 30, 2010.

Aleris emerged from Chapter 11 bankruptcy protection on June 1, 2010.
This resulted in the emerged Company being considered a new entity for
financial reporting purposes and dramatically impacted second quarter net
income as certain pre-bankruptcy debts were discharged in accordance with the
Plan of Reorganization immediately prior to emergence and assets and
liabilities were adjusted to their fair values upon emergence. As a result,
our financial statements for periods after June 1, 2010 (references to the
Company and the related financial statements for such periods, the
"Successor") are not comparable to the financial statements for periods prior
to that date (references to the Company and the related financial statements
for such periods, the "Predecessor"). However, we have adjusted for the most
significant of these differences in our presentation of Adjusted EBITDA. For
purposes of discussing operating performance in this press release, the
Successor and Predecessor results have been combined to derive "Combined"
results for the three month period ended June 30, 2010.

Second quarter combined 2010 revenues were US$1.0 billion compared to
US$688 million in the second quarter of 2009. Second quarter combined 2010
net income totaled US$3.0 billion compared to a net loss of US$109 million in
the second quarter of 2009. Combined second quarter 2010 net income totaled
US$44 million after excluding US$3.1 billion of gains from reorganization
items, US$26 million of losses from the impact of the write-up of inventory
and other items associated with our application of fresh-start accounting,
US$48 million of unrealized losses on derivative financial instruments, and
US$29 million of interest expense incurred in the Predecessor period of April
and May 2010. As a comparison, second quarter 2009 net loss totaled US$22
million
after excluding reorganization items, unrealized gains on derivative
financial instruments, restructuring, impairment and other charges, and
interest expense.

Adjusted EBITDA totaled US$73 million in the second quarter of 2010
compared to US$12 million in the second quarter of 2009. Adjusted EBITDA for
the twelve months ended June 30, 2010 totaled US$203 million.

Second quarter combined 2010 operating results reflect a 36% increase in
demand as all of our segments benefited from improved economic conditions as
compared to the second quarter of 2009. Our European segment's volumes
increased 25%, mainly driven by higher demand from the automotive sector for
both our recycled products and our rolled products. Second quarter combined
2010 volumes from our Rolled Products North America segment increased 27%
over the second quarter of 2009 as demand from customers in the building and
construction and transportation markets improved with the overall economy.
Our Recycling and Specification Alloys Americas ("RSAA") segment also
experienced a significant increase in demand from its automotive customers.
RSAA volumes increased 51% quarter over quarter.

In addition to higher volumes, our operating results benefited from lower
cash conversion costs per unit, primarily due to our significant
restructuring of global operations and our continuing efforts to reduce
operating costs, which occurred over the past 18 months.

At June 30, 2010, our long-term indebtedness consisted primarily of US$31
million
of borrowings under our new asset-backed lending facility ("ABL
Facility") and US$45 million of exchangeable notes. We had US$442 million of
liquidity at June 30, 2010, which consisted of US$374 million of availability
under the ABL Facility plus US$68 million of cash.

Steven J. Demetriou, Aleris chairman and chief executive officer, said,
"Our successful emergence from Chapter 11 begins an exciting new chapter for
Aleris. Second quarter demand across all of our segments improved, reflecting
the recovery from the extremely low demand levels of 2009. This increase in
demand, as well as our relentless focus on improving performance and
productivity through the Aleris Operating System, led to a strong quarterly
Adjusted EBITDA performance.

"With substantial liquidity and minimal debt, we are well positioned to
refocus our efforts on growing our core business and expanding globally."

Forward-Looking Statements

This press release contains forward-looking statements. These include
statements that contain words such as "believe," "expect," "anticipate,"
"intend," "estimate," "should" and similar expressions intended to connote
future events and circumstances, and include statements regarding future
actual and adjusted earnings; future improvements in margins, processing
volumes and pricing; overall 2010 operating performance; anticipated
effective tax rates; expected cost savings; the anticipated economic
environment in 2010; and future benefits from acquisitions and new products.
Investors are cautioned that all forward-looking statements involve risks and
uncertainties, and that actual results could differ materially from those
described in the forward-looking statements. These risks and uncertainties
would include, without limitation, Aleris's levels of indebtedness and debt
service obligations; its ability to effectively integrate the business and
operations of its acquisitions; further slowdowns in automotive production in
the U.S. and Europe; the financial condition of Aleris's customers and future
bankruptcies and defaults by major customers; the availability at favorable
cost of aluminum scrap and other metal supplies that Aleris processes; the
ability of Aleris to enter into effective metals, natural gas and other
commodity derivatives; increases in natural gas and other fuel costs of
Aleris; a weakening in industrial demand resulting from a decline in U.S. or
world economic conditions, including any decline caused by terrorist
activities or other unanticipated events; future utilized capacity of
Aleris's various facilities; a continuation of building and construction
customers and distribution customers reducing their inventory levels and
reducing the volume of Aleris's shipments; restrictions on and future levels
and timing of capital expenditures; retention of Aleris's major customers;
the timing and amounts of collections; currency exchange fluctuations; future
write-downs or impairment charges which may be required because of the
occurrence of some of the uncertainties listed above; the difficult
conditions in the capital, credit, commodities, automobile and housing
markets and in the current economy; and other risks listed in Aleris's
filings with the United States Bankruptcy Court, including but not limited to
Aleris's First Amended Plan of Reorganization and related Disclosure
Statement, particularly the section entitled "Risk Factors" contained
therein.

Non-GAAP Financial Measures

In addition to the results reported in accordance with GAAP, this press
release includes information regarding "Adjusted EBITDA." Adjusted EBITDA is
a non-GAAP measure and the Company's computation is likely to differ from the
methods used by other companies in computing similarly titled or defined
terms. Non-GAAP measures have limitations as analytical tools and should be
considered in addition to, not in isolation or as a substitute for, or
superior to, Aleris's measures of financial performance prepared in
accordance with GAAP, including pre-tax income (loss) and net income (loss).
Investors are encouraged to review the accompanying tables reconciling
Adjusted EBITDA to comparable GAAP amounts. Adjusted EBITDA, as used in this
press release, is defined as net income (loss) before interest income and
expense, taxes, depreciation and amortization ("EBITDA"), reorganization
items, net, unrealized gains and losses on derivative financial instruments,
restructuring, impairment and other charges, the impact of the write-up of
inventory and other items through fresh start and purchase accounting,
currency gains and losses on the translation of indebtedness, stock-based
compensation expense, metal price lag, and certain other non-cash gains and
losses. Management uses Adjusted EBITDA as a performance metric and believes
the measure provides additional information commonly used by parties to
Aleris's ABL facility in understanding our operating results and the ongoing
performance of our underlying businesses. In addition, Adjusted EBITDA,
excluding the adjustment for metal price lag, is a component of certain
financial covenants required under the ABL facility.

About Aleris

Aleris is a privately-held, global leader in aluminum rolled products and
extrusions, aluminum recycling and specification alloy production.
Headquartered in Beachwood, Ohio, the company operates more than 40
production facilities in the Americas, Europe and Asia. For more information,
visit www.aleris.com.

————————————————————————-

Aleris has no obligation under the Securities Act of 1933, as amended,
the Securities Exchange Act of 1934, as amended, or other laws to publicly
disclose financial or other information regarding its business. Aleris may
publicly disclose certain information from time to time, in its sole
discretion. Aleris may also determine not to publicly disclose any
information, in its sole discretion, notwithstanding prior disclosures or any
pattern of prior disclosures.

The information disclosed in this press release is believed by Aleris to
be accurate as of the date hereof. Aleris expressly disclaims any duty to
update the information contained in this press release. Persons engaging in
any transactions with Aleris or in Aleris's securities are cautioned that
there may exist other material information regarding Aleris that is not
publicly available.

    (All amounts in U.S. dollars unless otherwise specified)

                   Aleris International, Inc. (1)
                   ------------------------------

                                           For the three months ended
                                                    June 30,
                                           --------------------------
                                               2010            2009
                                               ----            ----
                                          (Combined)      (Predecessor)

                                                  (unaudited)
    (Dollars and pounds in
     millions)

    Pounds invoiced                         1,124.9             827.1
      Rolled Products North America           216.7             170.7
      Recycling and Specification
       Alloys Americas                        497.5             329.0
      Europe                                  410.7             327.4

    Revenue                                $1,039.0            $687.8

    Net income (loss)                      $3,029.6           $(108.7)

    Adjusted EBITDA                           $72.9             $11.5

    (1)  Aleris International, Inc. is a wholly-owned subsidiary of
    Aleris Holding Co., a holding company whose assets, liabilities and
    operations consist solely of those of Aleris International, Inc. The
    results of operations of Aleris Holding Company are identical to
    Aleris International, Inc.

    Aleris emerged from Chapter 11 bankruptcy protection on June 1, 2010.
    U.S. Generally Accepted Accounting Principles ("GAAP") required that
    the Company apply the fresh-start accounting provisions of ASC
    Topic 852, "Reorganizations," as of that date. This resulted in the
    emerged Company being considered a new entity for financial
    reporting purposes. Accordingly, the Company's financial statements
    for periods after June 1, 2010 (references to the Company and the
    related financial statements for such periods, the "Successor") are
    not comparable to its financial statements for periods prior to that
    date (references to the Company and the related financial statements
    for such Periods, the "Predecessor"). For illustrative purposes, the
    Company has combined the Successor and Predecessor results to derive
    "Combined" results for the three month period ended June 30, 2010.
    The financial information accompanying this earnings release
    provides separate Successor and Predecessor GAAP results for the
    applicable periods along with the combined results.

                             Aleris International, Inc.
                             --------------------------
                        Consolidated Statement of Operations
                                    (unaudited)
                                   (in millions)

                                                      For the      For the
                                                       three        three
                                                       months       months
                       For the one     For the two     ended        ended
                       month ended     months ended   June 30,     June 30,
                       June 30, 2010   May 31, 2010     2010         2009
                       -------------   ------------   ----------   ----------
                         (Successor)  (Predecessor) (Combined)  (Predecessor)
    Revenues                   $357.9         $681.1   $1,039.0       $687.8
    Cost of sales               352.4          607.0      959.4        651.5
                                -----          -----      -----        -----
    Gross margin                  5.5           74.1       79.6         36.3
    Selling, general and
     administrative
     expenses                    16.6           34.6       51.2         57.8
    Restructuring,
     impairment and
     other charges                0.5            0.9        1.4         39.3
    Losses (gains) on
     derivative
     financial
     instruments                  9.1           36.3       45.4        (14.4)
                                  ---           ----       ----         -----
    Operating (loss)
     income                     (20.7)           2.3      (18.4)       (46.4)
    Interest expense,
     net                          1.0           29.2       30.2         58.0
    Reorganization
     items, net                   1.9       (3,091.2)  (3,089.3)         8.8
    Other expense
     (income), net                0.2           20.6       20.8         (6.3)
                                  ---           ----       ----          ----
    (Loss) income before
     income taxes               (23.8)       3,043.7    3,019.9       (106.9)
    Provision for
     (benefit from)
     income taxes                 0.3          (10.0)      (9.7)         1.8
                                  ---          -----       ----          ---
    Net (loss) income          $(24.1)      $3,053.7   $3,029.6      $(108.7)
                               ======       ========   ========       =======
                                 Aleris International, Inc.
                                 --------------------------
                                 Consolidated Balance Sheet

                       (in millions, except share and per share data)

                                                 June 30,      December 31,
                                                  2010            2009
                                                ---------   -------------
                                               (unaudited)
                            ASSETS             (Successor)  (Predecessor)
    Current Assets
    Cash and cash equivalents                        $67.5          $108.9
    Accounts receivable (net of
     allowances of $8.7 and $16.7 at
     June 30, 2010 and December 31,
     2009)                                           463.7           319.3
    Inventories                                      511.5           425.8
    Deferred income taxes                                -             9.8
    Current derivative financial
     instruments                                       5.0            30.4
    Prepaid expenses and other current
     assets                                           40.9            64.3
                                                      ----            ----
           Total Current Assets                    1,088.6           958.5
    Property, plant and equipment, net               477.1           500.3
    Goodwill                                             -            37.8
    Intangible assets, net                            50.8            26.3
    Long-term derivative financial
     instruments                                       2.4             8.6
    Deferred income taxes                             10.2            28.9
    Other long-term assets                            36.0            19.9
           Total Assets                           $1,665.1        $1,580.3
                                                  ========        ========

                 LIABILITIES AND STOCKHOLDER'S
                        EQUITY (DEFICIT)
    Current Liabilities
    Accounts payable                                $248.5          $203.2
    Accrued liabilities                              187.6           165.1
    Deferred income taxes                             10.6            29.2
    Current portion of long-term debt                  5.3           391.7
    Debt in default                                      -             5.0
    Debtor-in-possession financing                       -           444.0
                                                       ---           -----
           Total Current Liabilities                 452.0         1,238.2
    Long-term debt                                    75.8             2.0
    Deferred income taxes                              5.7            27.5
    Accrued pension benefits                         185.1           123.4
    Accrued postretirement benefits                   47.4               -
    Other long-term liabilities                       84.8            90.5
                                                      ----            ----
           Total Long-Term Liabilities               398.8           243.4
    Liabilities subject to compromise                    -         2,279.3
    Preferred stock; par value $.01;
     5,000 shares authorized and issued
     at June 30, 2010                                  5.0               -
    Stockholder's Equity (Deficit)
    Successor:
      Common stock; par value $.01; 5,000
       shares authorized and 100 shares
       issued                                            -               -
      Additional paid-in capital                     834.2               -
    Predecessor:
      Preferred stock; par value $.01;
       100 shares authorized; none issued                -               -
      Common stock; par value $.01; 900
       shares authorized and issued                      -               -
      Additional paid-in capital                         -           857.8
    Retained deficit                                 (24.1)       (3,063.4)
    Accumulated other comprehensive
     (loss) income                                    (0.8)           25.0
           Total Stockholder's Equity                -----        --------
            (Deficit)                                809.3        (2,180.6)
                                                     -----        --------
           Total Liabilities and Stockholder's
            Equity (Deficit)                      $1,665.1        $1,580.3
                                                  ========        ========

                             Aleris International, Inc.
                             --------------------------
               Reconciliation of Adjusted EBITDA to Net Income (Loss)
                                     (unaudited)
                                    (in millions)

                                                    For the three months
                                                           ended
                                                         June 30,
                                                         --------
                                                      2010               2009
                                                      ----               ----
                                                (Combined)      (Predecessor)
    Adjusted EBITDA                                  $72.9             $11.5
    Reorganization items, net                      3,089.3              (8.8)
    Unrealized (losses) gains on derivative
     financial instruments                           (48.4)             18.9
    Restructuring, impairment and other charges       (1.4)            (39.3)
    Impact of recording assets at fair value
     through fresh-start and purchase
     accounting                                      (26.0)             (1.1)
    Currency (losses) gains on translation of
     indebtedness                                    (23.2)              7.7
    Stock-based compensation expense                  (1.1)             (0.2)
    Metal price lag                                    1.9               9.8
    Other                                             (0.7)             (1.4)
                                                      ----               ----
    EBITDA                                         3,063.3              (2.9)
    Interest expense, net                            (30.2)            (58.0)
    Benefit from (provision for) income taxes          9.7              (1.8)
    Depreciation and amortization                    (13.2)            (46.0)
                                                     -----              -----
    Net income (loss)                             $3,029.6           $(108.7)
                                                  ========            =======

                               Aleris International, Inc.
                               --------------------------
                       Reconciliation of Segment Income (Loss) to
                                Segment Adjusted EBITDA
                                      (unaudited)
                                     (in millions)

                                                       For the three months
                                                           ended June 30,
                                                       --------------------
                                                      2010              2009
                                                      ----              ----
                                                  (Combined)     (Predecessor)
    Rolled Products North America
      Segment income                                 $13.4              $16.5
      Impact of recording assets at fair value
       through fresh-start and purchase
       accounting                                      1.9                  -
      Depreciation and amortization                    6.8                7.2
      Metal price lag                                  4.7             (13.1)
      Other                                            0.5                1.0
        Segment Adjusted EBITDA                      $27.3              $11.6
                                                     =====              =====

    Recycling and Specification Alloys
     Americas
      Segment income (loss)                          $13.7             $(4.9)
      Impact of recording assets at fair value
       through fresh-start and purchase
       accounting                                      1.7              (0.1)
      Depreciation and amortization                    1.8                6.2
      Metal price lag                                    -                1.0
      Other                                              -                0.5
        Segment Adjusted EBITDA                      $17.2               $2.7
                                                     =====               ====

    Europe
      Segment income (loss)                          $14.9            $(28.9)
      Impact of recording assets at fair value
       through fresh-start and purchase
       accounting                                     22.4                1.2
      Depreciation and amortization                    3.8               31.0
      Metal price lag                                 (6.6)               2.3
        Segment Adjusted EBITDA                      $34.5               $5.6
                                                     =====               ====
                           Aleris International, Inc.
                           --------------------------
       Reconciliation of Last Twelve Months Adjusted EBITDA to Net Income
                                   (unaudited)
                                  (in millions)

                                                          For the twelve
                                                           months ended
                                                             June 30,
                                                             --------
                                                               2010
                                                               ----
                                                            (Combined)
    Adjusted EBITDA                                            $203.1
    Reorganization items, net                                 3,067.8
    Unrealized losses on derivative financial
     instruments                                               (10.2)
    Restructuring, impairment and other charges               (788.3)
    Impact of recording assets at fair value through
     fresh-start and purchase accounting                       (27.4)
    Currency losses on translation of indebtedness             (27.5)
    Stock-based compensation expense                            (3.0)
    Metal price lag                                             85.8
    Other                                                        0.7
                                                                 ---
    EBITDA                                                   2,501.0
    Interest expense, net                                     (192.9)
    Benefit from income taxes                                   49.9
    Depreciation and amortization                             (100.6)
                                                              ------
    Net income                                              $2,257.4
                                                             ========

    (Logo: photos.prnewswire.com/prnh/20050504/CLW056LOGO )
    (Logo: www.newscom.com/cgi-bin/prnh/20050504/CLW056LOGO )

Investor Contact: Sean M. Stack, Aleris International, Inc., +1-216-910-3504; Media Contact: Kristen Bihary, Aleris International, Inc., +1-216-910-3664

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