TK Aluminum Ltd., the indirect parent of Teksid Aluminum Luxembourg S.à r.l., S.C.A., has provided an update regarding various matters related to the ongoing business of the Company. Teksid Aluminum is an independent manufacturer of aluminum engine castings for the automotive industry.  Principal products are cylinder heads, engine blocks, transmission housings and suspension components.

Who are the Company's largest customers?

Based on 2006 revenue, the three largest customers of the Company's retained operations (i.e., those not sold or agreed to be sold to Tenedora Nemak, S.A. de C.V.) are Renault, Fiat and PSA Peugeot Citroën.

Are discussions ongoing regarding a sale or sales of the Group B assets?

Yes. The Company continues to pursue alternatives with regard to its remaining equity interests in its subsidiaries located in France, Italy and Germany (together, "Group B"). As previously reported, the Company is in discussions with potential purchasers of some or all operations. As previously disclosed, the Company's financial advisor Lazard has conducted and continues to conduct an extensive sale process, which has included a wide range of potential industrial and financial parties, of which various parties have shown interest in individual groups of assets or businesses or, in some instances, the entire business of the Company. The Company has also engaged the professional services firm Alvarez & Marsal ("A&M") in evaluating and assessing its various options with respect to its Group B assets.

The consummation of a transaction with any potential purchaser remains subject to a number of conditions, including execution of a definitive agreement, regulatory approvals, completion of satisfactory due diligence, consent of the majority of holders of the Company's 11 3/8% Senior Notes due 2011 ("Noteholders") and internal approvals of the Company. There can be no assurance that a definitive agreement with any party will be executed on acceptable terms or at all. Additionally, even assuming acceptable terms are reached, there can be no assurance that the required conditions of such transactions would be met, including any requirement to receive consent of the Noteholders.

What is the expected timing and amount of the Fiat indemnity payment?

As previously disclosed, pursuant to a settlement agreement between the Company and Teksid S.p.A., which is controlled by FIAT S.p.A. ("FIAT"), entered into on July 11, 2006 (the "Settlement Agreement"), the Company is entitled to receive certain indemnity payments from Teksid S.p.A., including a payment of €18.0 million upon release of FIAT from its guaranty provided in favor of one of the Company's lenders for the benefit of a subsidiary of the Company (the "Fiat Payment"). Subject to the satisfaction of certain conditions contained in the termination agreement entered into between that certain subsidiary of the Company and other beneficiaries of the guaranty, the guaranty is expected to be released approximately 90 days from the consummation of the initial Nemak transaction. Pursuant to the Settlement Agreement, the Fiat Payment is expected to be made within 10 business days after such release. Accordingly, we expect the payment to be made in approximately late June 2007.

What is the role of Alvarez & Marsal?

A&M (U.S.) has been retained to provide consulting services to the Company's subsidiary Teksid Aluminum North America, Inc., and A&M (Europe) has been retained by the Company's French and Italian subsidiaries.
 

They will provide certain consulting and advisory services to such companies. In rendering its services to such companies, A&M (Europe) reports to the respective boards, Chief Executive Officer and such other persons as the respective boards or Chief Executive Officer may specify.

It is expected that the Company will appoint a representative of A&M as chief restructuring officer of Teksid Aluminum Luxembourg S.à r.l., S.C.A ("Teksid Luxembourg") for an appropriate period of time to assist in the restructuring, recapitalization or disposition of the Company's operations in France, Italy and Germany. Such engagement is subject, however, to the availability of sufficient funds to support the A&M activities and mutual agreement regarding A&M's role in the corporate structure of the Company.

Are discussions ongoing with respect to a disposition of the Company's Turkish JV interest?

The Company continues to explore disposal opportunities for its equity interest in Cevher Dokum Sanayi A.S. and has received an offer from the majority equity owner, Cevher, to purchase its equity interest.

What are the balances of the intercompany loans involving the Company's Italian subsidiaries?

On an unaudited and preliminary basis, as of March 31, 2007, Teksid Aluminum S.r.l. ("Teksid Italy"), one of the Italian subsidiaries, owed other group entities the following respective amounts: Teksid Luxembourg, €1.04 million; the Company's French subsidiaries, €10.40 million; Teksid Deutschland GmbH, €0.14 million. In addition, as of the same date and on an unaudited and preliminary basis, Teksid Italy was owed by the following entities: Teksid Aluminum Poland Sp. Zo.o ("Teksid Poland"), €1.52 million; Teksid Aluminum Getti Speciali S.r.l. ("Getti Speciali"), €1.18 million; Teksid Luxembourg, €6.40 million; TK Aluminum Luxembourg Finance S.à r.l., €15.3 million. The loan to Teksid Poland was subsequently settled in connection with the closing of the sale of Teksid Poland in April.

Also as of March 31, 2007, and again on an unaudited and preliminary basis, Getti Speciali, the Company's other Italian subsidiary, owed €1.18 million to Teksid Italy and €0.40 million to Teksid Luxembourg. In addition, Getti Speciali was owed €0.82 million by Teksid Deutschland GmbH. All amounts above are approximate.

Has the Company won any significant new customers or product lines within the past six months?

The Company is committed to supporting its remaining operations and customers. In the past six months, the Company's subsidiary Fonderie du Poitou Aluminium S.A.S. has won three new contracts to produce cylinder heads for Renault. In addition, the Company has received additional business support from FIAT as well as the opportunity to supply additional volume to Renault. There can be no assurance that the Company will have sufficient resources to accommodate such opportunities. The Company is not in a position to further comment on these developments.