Century Aluminum Company - Company Announcement

- Century Aluminum Unwinds Primary Aluminum Financial Forward Sales Contracts

Century Aluminum Unwinds All Remaining Aluminum Forward Financial Sales
Contracts, Providing Century Shareholders With Full Exposure to the Aluminum
Market on Future Production 

Transaction Value of $1.7 Billion Comprised of $1 Billion of a New Class of
Non-Voting Convertible Preferred Stock and $0.7 Billion of Cash 

MONTEREY, CA--(Marketwire - July 08, 2008) - Century Aluminum Company (NASDAQ:
CENX) announced today an agreement with Glencore to unwind all of its primary
aluminum financial forward sales contracts. The contracts have been settled for
a total value of $978.4 million in a new class of non-voting convertible
preferred stock and $730.2 million in cash. After the payment for the June 2008
volumes (to be made in mid July per the previously existing terms), Century
will have no further obligations under the forward contracts. "We are pleased to have reached this agreement," said Logan W. Kruger,
Century's President and Chief Executive Officer. "Entering into the fixed price
forward financial sales contracts was the appropriate strategy for Century at
the time they were put in place. Today, our plants in Iceland and the U.S.
enjoy a strong competitive position. We see favorable fundamentals for the
global primary aluminum market and believe our shareholders will benefit from
our ability to realize market pricing on our entire production capacity. We
have an attractive pipeline of growth opportunities which can be funded with
the additional cash flow we will unlock through this transaction. We are very
pleased with Glencore's continuing support; by accepting the preferred stock
and its terms, they have reaffirmed their position as a long-term shareholder."

Transaction Structure 

As consideration for the cancellation of the forward financial sales contracts,
which were entered into in November 2004 and June 2005, Century has issued to
Glencore 160,000 shares of a new class of convertible preferred stock which
pays no dividend unless Century were to pay a dividend on its common stock. The
preferred stock is convertible into Century's common stock at a conversion
ratio of 1:100, thereby representing 16,000,000 underlying shares of common
stock. The preferred stock carries no general voting rights, but in other
principal respects shares the rights and features of Century's common stock. As
such, the preferred stock will be accounted for as a common stock equivalent in
the calculation of diluted shares outstanding. The remaining portion of the
transaction consideration has been paid with $225.0 million of Century's cash
on hand and through a $505.2 million deferred settlement agreement with
Glencore. This deferred settlement agreement carries an interest rate of LIBOR
plus 2.50% on outstanding amounts and requires monthly repayments from
September 2008 through December 2009, or earlier without penalty at Century's
option. 

The agreement restricts the sale or transfer of the preferred stock. The
preferred stock is generally convertible into common stock only upon Glencore
exercising its right to demand that Century register an equivalent number of
underlying common shares and conduct, on Glencore's behalf, an underwritten
common stock offering. The registration rights are limited by provisions
typical in such agreements. The agreement also restricts Glencore's ability to
purchase additional shares of Century's common stock or to propose certain
corporate transactions for a limited period of time. 

Century Aluminum Company owns primary aluminum capacity in the United States
and Iceland, as well as an interest in alumina and bauxite assets in the United
States and Jamaica. Century's corporate offices are located in Monterey,
California. 

Century Aluminum will hold a conference call today to discuss this announcement
at 10:30 a.m. Eastern. To listen to the conference call and to view related
presentation materials, go to http://investor.shareholder.com/cenx/events.cfm
and click on the conference call link. 

Cautionary Statement 

This press release may contain "forward-looking statements" within the meaning
of U.S. federal securities laws. The company has based its forward-looking
statements on current expectations and projections about the future; however,
these statements are subject to risks, uncertainties and assumptions, any of
which could cause the company's actual results to differ materially from those
expressed in its forward-looking statements. More information about these
risks, uncertainties and assumptions can be found in the risk factors and
forward-looking statements cautionary language contained in the company's
Annual Report on Form 10-K and in other filings made with the Securities and
Exchange Commission. The company does not undertake, and specifically
disclaims, any obligation to revise any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or circumstances after
the date such forward-looking statements are made. 

Certified Advisors for the First North market of the OMX Nordic Exchange
Iceland hf. for Global Depositary Receipts in Iceland: 

Helga Gunnarsdottir, Director-Corporate Finance, Landsbanki Islands hf. 

Olafur Finsen, Senior Legal Advisor-Corporate Finance, Landsbanki Islands hf. 


Contacts:
Mike Dildine (media)
831-642-9364

Shelly Lair (investors)
831-642-9357