TK Aluminum Ltd. Announces Completion of the Sale of its Remaining Equity Interest in Nanjing Teksid Aluminum Foundry Co., Ltd. to Tenedora Nemak, S.A. de C.V.

TK Aluminum Ltd. (the "Company"), the indirect parent of Teksid Aluminum Luxembourg S.A R.L., S.C.A. ("Teksid Luxembourg"), announced today that on June 27, 2007 its subsidiary Teksid Aluminum S.r.l. ("Teksid Italy") completed the sale of its remaining 40% equity interest in Nanjing Teksid Aluminum Foundry Co., Ltd. ("Nanjing Teksid") to Tenedora Nemak, S.A. de C.V. ("Nemak"), a subsidiary of ALFA, S.A.B. de C.V. ("ALFA"). Teksid Luxembourg indirectly sold an additional 30% stake in Nanjing Teksid to Nemak on March 15, 2007. With the completion of the sale of this remaining interest in Nanjing Teksid, the Company has consummated the sales contemplated by the previously disclosed revised terms of the Nemak transaction.

Pursuant to the revised terms of the Nemak transaction, the aggregate purchase price allocated to the sale of the Company's entire 70% interest in Nanjing Teksid and receivables related thereto was approximately US$15.3 million in cash consideration plus the issuance of an additional 0.21% of synthetic equity interest in the Nemak business (bringing the Company's total synthetic equity interest in the Nemak business to 6.68%). At the closing of the sale of the Company's 40% equity interest in Nanjing Teksid, the Company's subsidiaries received aggregate net cash proceeds of approximately US$14.8 million for the Company's entire 70% indirect interest in Nanjing Teksid and certain related receivables, which aggregate net proceeds included a payment of approximately US$1.9 million for Teksid Luxembourg's 30% interest in Nanjing Teksid indirectly transferred to Nemak as part of the initial closing on March 15, 2007 and approximately US$1.4 million related to the purchase of a loan receivable from Teksid Luxembourg. In addition, at the June 27th closing, Teksid Italy received an additional approximately US$1.7 million in cash related to the purchase of certain equipment used by Nanjing Teksid from Teksid Italy, and Teksid Luxembourg received an additional approximately US$1 million in cash as the result of the issuance of a loan by ALFA. The aggregate cash proceeds were based on the purchase price allocation and estimated withholding taxes as contemplated by the revised terms of the Nemak transaction.