.... Sufficient for Four-Line Operation in 2000 and 2001

HOUSTON--(BUSINESS WIRE)--Dec. 16, 1999--Kaiser Aluminum & Chemical Corporation, the operating subsidiary of Kaiser Aluminum Corporation, said today that its 90%-owned Volta Aluminium Company Limited (Valco) smelter in Ghana has received from the Volta River Authority (VRA) a power allocation for 2000 and 2001 that would enable the smelter to operate four of five potlines, or roughly 80% of its rated capacity of 200,000 metric tonnes, in each of those two years.

Kaiser said Valco will be operating at a four-line rate as of January 1, 2000 and, subject to market conditions, it intends to operate at that level through the end of 2001. Giving effect to Valco's four-line operation, Kaiser said it expects its system-wide operating rate in primary aluminum will approximate 89% in 2000.

In 1999, Valco's power allocation was sufficient for the operation of three lines, although the smelter had recently surpassed that level to compensate for a low operating rate early in the year.

Kaiser also said Valco has reached agreement with the Government of Ghana and the VRA on several related matters, including the settlement of Valco's claims for compensation related to the 1998 and 1999 power allocations. The agreement provides for net payments to Valco of approximately $13 million during 2000 and 2001. Kaiser noted that Valco also has signed agreements with the Government of Ghana and the VRA that provide a constructive framework for resolving longer-term issues. Among other things, this framework is anticipated to result in an increase in the price for power beginning in 2000, partially offset by the above payments in 2000 and 2001, and an improvement in the reliability of Valco's long-term power supply.

"We commend the Government of Ghana and the VRA for their support of Valco and for their willingness to work constructively to address the longer-term issues," said Ray Milchovich, Kaiser's president and chief operating officer. "Valco is one of Kaiser's most important assets, and we look forward to sustaining this operation at much higher levels of productivity than in recent years."

Kaiser Aluminum is a leading producer of alumina, primary aluminum, and fabricated aluminum products. MAXXAM Inc. (ASE:MXM) directly and indirectly holds approximately 63 percent of Kaiser.

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.