March 23, 2004

Monthly Update to Customers, Employees, Suppliers, and Friends of Kaiser Aluminum:

In Yesterday’s Court Hearing

The Court focused on the following topics at yesterday’s hearing.  Specifically, the Court:

• Ordered that an auction be conducted to determine the winning bidder for Kaiser’s interests in and related to Alpart, a partnership that owns bauxite mining operations and an alumina refinery in Jamaica.  The Court terminated without prejudice Kaiser’s agreement to sell these interests, including 65% of the Alpart partnership, to Glencore AG for approximately $165 million.  The Court-ordered auction will be conducted on April 20, with the minimum bid set at $215 million. Kaiser expects the Court to rule on the winning bid at the regularly scheduled monthly hearing on April 26. The Court also confirmed that the results of the auction will still be subject to a right of first refusal by Hydro Aluminium, the 35% owner of Alpart.

• Approved our request for bidding procedures in connection with the proposed sale of Kaiser’s Mead, Washington, facility, along with some additional assets, for gross cash proceeds of about $4 million to an affiliate of Columbia Ventures Corporation.  As a result, we expect that the auction will occur on April 8 and that the Court will rule on the results of the auction and any objections to the final transaction at the April 26 hearing.

• Accepted our settlement agreements relating to alumina supply contracts with three customers, subject to final documentation; accepted our mutual dismissal of all proceedings as to a fourth alumina customer; and dismissed a series of discovery and litigation matters that had arisen in connection with the motions to rejection of these agreements.  The net effect is that we will continue to supply alumina to these customers and all associated litigation matters are terminated as to these parties.

Liquidity

Recent liquidity has remained at approximately $180 million.

Jack A. Hockema
President and Chief Executive Officer

MONTHLY OPERATING REPORTS

UPDATE ARCHIVE

February 2004
January 2004
December 2003
November 2003
October 2003
September 2003
August 2003
July 2003
June 2003
May 2003
April 2003
March 2003
February 2003
January 2003
December 2002
November 2002
October 2002
September 2002
August 2002
July 2002
June 2002
May 2002
April 2002
March 2002

February 23, 2004
February 4, 2004
January 26, 2004

December 19, 2003
Letter to Participants of the Kaiser Aluminum Salaried Employees  Retirement Plan (KRP)

December 15, 2003

November 17, 2003
October 27, 2003
September 22, 2003
August 25, 2003
July 28, 2003

July 24, 2003:
Memo to Salaried Retirees and Employees Regarding Section 1114 Bankruptcy Court Filing

July 24, 2003:
Open Letter to Customers and Suppliers from CEO Jack Hockema

June 16, 2003
May 19, 2003
April 28, 2003
March 17, 2003
February 4, 2003
January 27, 2003
January 14, 2003 (Jamaica)
January 14, 2003 (Canada)
December 19, 2002
November 26, 2002
October 29, 2002
September, 23, 2002
August 27, 2002
July 17,2002
June 21, 2002