February 22, 2006

Century Aluminum Reports 2005 Financial Results

MONTEREY, CA, Feb 22, 2006 (MARKET WIRE via COMTEX News Network) -- Century Aluminum Company (NASDAQ: CENX) today reported a net loss of $148.7 million, or $4.62 per diluted share, for the fourth quarter of 2005. Reported fourth quarter results were negatively impacted by an after-tax charge of $164.6 million, or $5.12 per diluted share, for mark-to-market adjustments on forward contracts (which will settle during the period 2006-2015) that do not qualify for cash flow hedge accounting.

In the second quarter of 2005, the company changed from the last-in first-out (LIFO) inventory valuation method to the first-in first-out (FIFO) method. Financial statements for periods prior to the second quarter of 2005 have been restated to reflect this change. Financial and operating results for 2004 include Nordural from the April 27, 2004, acquisition date.

In the fourth quarter of 2004, the company reported net income of $24.6 million, or $0.77 per diluted share. Before restatement, the company reported net income of $20.9 million, or $0.65 per diluted share.

Highlights of 2005 included:

--  Primary aluminum shipments increased to a record 615,842 metric tonnes
--  Revenues increased seven percent from the prior year to a record $1.13
    billion
--  Net cash provided by operating activities was a record $135 million,
    up over 27 percent from 2004
--  Operating income of $127 million was the second highest in the
    company's history
--  Fourth quarter results were impacted by energy costs and severe
    weather
--  Nordural expansion continued on schedule and on budget
--  Record production at Ravenswood
--  Hawesville operations back at full capacity, record production in
    December

For 2005, Century reported a net loss of $116.3 million, or $3.62 per diluted share. Total year results include an after-tax charge of $198.2 million, or $6.17 per diluted share for mark-to-market adjustments on forward contracts (which will settle during the period 2006-2015) that do not qualify for cash flow hedge accounting. In 2004, restated net income totaled $33.5 million, or $1.14 per diluted share, after preferred dividends ($28.0 million, or $0.95 a share, fully diluted, after preferred dividends, before restatement).

Sales for the fourth quarter of 2005 were $292.9 million compared with $290.6 million for the fourth quarter of 2004. Shipments of primary aluminum for the 2005 fourth quarter were 156,014 metric tonnes, compared with 157,264 metric tonnes shipped in the year-ago quarter.

Sales for 2005 were $1.13 billion compared with $1.06 billion for 2004, and total 2005 primary aluminum shipments of 615,842 metric tonnes compared with 597,864 metric tonnes shipped in 2004.

"Century performed well during the fourth quarter," said president and chief executive officer Logan W. Kruger. "Metal prices were robust and all of our plants operated at high levels, including Hawesville, which regained its normal operating efficiency. Unusually high energy costs and severe weather, however, increased our costs for the quarter.

"Overall, 2005 was a year of record production, revenue and cash flow from operations for Century. The Nordural expansion, which began its initial production on February 15, is continuing to proceed on budget for a scheduled completion in the fourth quarter of 2006. Looking ahead, we see attractive opportunities to build a larger, more diversified and more cost-competitive company."

Century presently owns 615,000 metric tonnes per year (mtpy) of primary aluminum capacity. The company owns and operates a 244,000 mtpy plant at Hawesville, Kentucky; a 170,000 mtpy plant at Ravenswood, West Virginia; and a 90,000 mtpy plant at Grundartangi, Iceland that is being expanded to 220,000 mtpy. The company also owns a 49.67-percent interest in a 222,000 mtpy reduction plant at Mt. Holly, South Carolina. ALCOA Inc. owns the remainder of the plant and is the operating partner. With the completion of the Grundartangi expansion, Century's total capacity will stand at 745,000 mtpy by the fourth quarter of 2006. Century also holds a 50-percent share of the 1.25 million mtpy Gramercy Alumina refinery in Gramercy, Louisiana and related bauxite assets in Jamaica. Century's corporate offices are located in Monterey, California.

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.

Century Aluminum Company
                    Consolidated Statements of Operations
                   (in Thousands, Except Per Share Amounts)
                                (Unaudited)
                             Three months ended           Year ended
                                 December 31,            December 31,
                                           2004                    2004
                               2005      Restated      2005      Restated
                            ----------  ----------  ----------  ----------
NET SALES:
  Third-party customers     $  247,770  $  248,260  $  961,335  $  897,538
  Related parties               45,104      42,343     171,027     163,209
                            ----------  ----------  ----------  ----------
                               292,874     290,603   1,132,362   1,060,747
COST OF GOODS SOLD             258,170     233,830     970,685     875,460
                            ----------  ----------  ----------  ----------
GROSS PROFIT                    34,704      56,773     161,677     185,287
SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES         9,827       7,950      34,773      24,916
                            ----------  ----------  ----------  ----------
OPERATING INCOME                24,877      48,823     126,904     160,371
INTEREST EXPENSE - Net          (5,976)     (7,400)    (24,301)    (39,240)
NET LOSS ON FORWARD CONTRACTS (257,218)     (4,375)   (309,698)    (21,521)
LOSS ON EARLY
 EXTINGUISHMENT OF DEBT              -           -        (835)    (47,448)
OTHER INCOME
 (EXPENSE) - Net                  (428)       (507)        275      (1,305)
                            ----------  ----------  ----------  ----------
INCOME (LOSS) BEFORE INCOME
 TAXES AND EQUITY
 IN EARNINGS OF
 JOINT VENTURES               (238,745)     36,541    (207,655)     50,857
INCOME TAX
 (EXPENSE) BENEFIT              88,275     (12,719)     80,697     (18,196)
                            ----------  ----------  ----------  ----------
INCOME (LOSS) BEFORE EQUITY
 IN EARNINGS OF JOINT
 VENTURES                     (150,470)     23,822    (126,958)     32,661
EQUITY IN EARNINGS
 OF JOINT VENTURES               1,812         821      10,703         821
                            ----------  ----------  ----------  ----------
NET INCOME (LOSS)             (148,658)     24,643    (116,255)     33,482
PREFERRED DIVIDENDS                  -           -           -        (769)
                            ----------  ----------  ----------  ----------
NET INCOME (LOSS)
 APPLICABLE TO
 COMMON SHAREHOLDERS        $ (148,658) $   24,643  $ (116,255) $   32,713
                            ==========  ==========  ==========  ==========
EARNINGS (LOSS) PER
 COMMON SHARE
  Basic -
   Net income (loss)        $    (4.62) $     0.77  $    (3.62) $     1.14
  Diluted -
   Net income (loss)        $    (4.62) $     0.77 $     (3.62) $     1.14
WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING
  Basic                         32,181      32,024      32,136      28,668
  Diluted                       32,181      32,099      32,136      28,775
Century Aluminum Company
                             Consolidated Balance Sheets
                               (Dollars in Thousands)
                                     (Unaudited)
                                                 December 31, December 31,
                                                    2005     2004 Restated
                                                 ----------   ----------
ASSETS
Current Assets:
  Cash                                           $   17,752   $   44,168
  Restricted cash                                     2,028        1,678
  Accounts receivable - net                          83,016       79,576
  Due from affiliates                                18,638       14,371
  Inventories                                       111,436      111,284
  Prepaid and other current assets                   23,918       10,055
  Deferred taxes - current portion                   37,705       24,642
                                                 ----------   ----------
     Total current assets                           294,493      285,774
Property, plant and equipment - net               1,070,158      806,250
Intangible asset - net                               74,643       86,809
Goodwill                                             94,844       95,610
Other assets                                        126,403       58,110
                                                 ----------   ----------
     Total                                       $1,660,541   $1,332,553
                                                 ==========   ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
  Accounts payable, trade                        $   61,919   $   47,479
  Due to affiliates                                 158,682       84,815
  Industrial revenue bonds                            7,815        7,815
  Long-term debt - current portion                      581       10,582
  Accrued and other current liabilities              53,715       53,309
  Accrued employee benefits costs
   - current portion                                  9,333        8,458
  Convertible senior notes                          175,000      175,000
                                                 ----------   ----------
     Total current liabilities                      467,045      387,458
                                                 ----------   ----------
Senior unsecured notes payable - net                250,000      250,000
Nordural debt                                       230,436       80,711
Revolving credit facility                             8,069            -
Accrued pension benefit costs
 - less current portion                              10,350       10,685
Accrued post retirement benefits costs
 - less current portion                              96,660       85,549
Other liabilities                                    28,010       34,961
Due to affiliates - less current portion            337,416       30,416
Deferred taxes                                            -       68,273
                                                 ----------   ----------
     Total noncurrent liabilities                   960,941      560,595
                                                 ----------   ----------
Shareholders' Equity:
  Common stock (one cent par value,
   100,000,000 shares authorized;
   32,188,165 shares outstanding
   at December 31, 2005 and 32,038,297 at
   December 31, 2004)                                   322          320
  Additional paid-in capital                        419,009      415,453
  Accumulated other comprehensive loss              (91,418)     (52,186)
  Retained earnings (accumulated deficit)           (95,358)      20,913
                                                 ----------   ----------
     Total shareholders' equity                     232,555      384,500
                                                 ----------   ----------
     Total                                       $1,660,541   $1,332,553
                                                 ==========   ==========
Century Aluminum Company
                Consolidated Statements of Cash Flows
                        (Dollars in Thousands)
                            (Unaudited)
                                                         Year ended
                                                        December 31,
                                                                   2004
                                                      2005       Restated
                                                   ----------   ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                $ (116,255)  $   33,482
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Unrealized net loss on forward contracts          306,756        2,405
    Depreciation and amortization                      56,533       50,254
    Deferred income taxes                             (80,697)       9,925
    Pension and other post retirement benefits         12,381        8,040
    Workers' compensation                              (1,572)         820
    (Gain) loss on disposal of assets                     (32)         761
    Non cash loss on early extinguishment of debt         253        9,659
    Change in operating assets and liabilities:
      Accounts receivable - net                        (3,440)     (19,440)
      Due from affiliates                              (4,267)      (3,623)
      Inventories                                        (152)     (16,023)
      Prepaid and other current assets                (10,092)      (3,590)
      Accounts payable, trade                           8,528        2,602
      Due to affiliates                                   920       16,179
      Accrued and other current liabilities           (11,801)      15,507
      Other - net                                     (22,127)      (1,130)
                                                   ----------   ----------
    Net cash provided by operating activities         134,936      105,828
                                                   ----------   ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property, plant and equipment           (18,027)     (15,240)
  Nordural expansion                                 (280,086)     (59,784)
  Proceeds from sale of property, plant and equipment     124            -
  Restricted cash deposits                               (350)      (1,678)
  Business acquisitions, net of cash acquired          (7,000)    (198,584)
                                                   ----------   ----------
    Net cash used in investing activities            (305,339)    (275,286)
                                                   ----------   ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Borrowings of long-term debt                        222,937      425,883
  Repayment of long-term debt                         (83,279)    (425,881)
  Repayment of related party debt                           -      (14,000)
  Net borrowings under revolving credit facility        8,069            -
  Financing fees                                       (5,132)     (13,062)
  Dividends                                               (16)      (3,311)
  Issuance of common stock                              1,408      215,793
                                                   ----------   ----------
    Net cash provided by financing activities         143,987      185,422
                                                   ----------   ----------
NET INCREASE (DECREASE) IN CASH                       (26,416)      15,964
CASH, BEGINNING OF PERIOD                              44,168       28,204
                                                   ----------   ----------
CASH, END OF PERIOD                                $   17,752   $   44,168
                                                   ==========   ==========
Century Aluminum Company
                       Selected Operating Data
                              (Unaudited)
                     SHIPMENTS - PRIMARY ALUMINUM
                           Direct (1)                      Toll
                  ---------------------------  ---------------------------
                   Metric    (000)              Metric    (000)     (000)
                    Tons     Pounds   $/Pound    Tons     Pounds   Revenue
                  -------  ---------  -------  -------  ---------  -------
2005
4th Quarter       132,712    292,581  $  0.88   23,302     51,372  $35,703
3rd Quarter       129,555    285,619  $  0.83   23,435     51,665  $33,175
2nd Quarter       130,974    288,748  $  0.86   23,025     50,761  $34,174
1st Quarter       130,083    286,783  $  0.88   22,756     50,168  $33,372
                  -------  ---------  -------  -------  ---------  -------
Total             523,324  1,153,731  $  0.86   92,518    203,966 $136,424
2004
4th Quarter       133,940    295,287  $  0.87   23,324     51,421  $33,077
3rd Quarter       132,893    292,978  $  0.83   23,232     51,218  $31,095
2nd Quarter       133,726    294,816  $  0.82   16,148     35,600  $21,483
1st Quarter       134,601    296,743  $  0.78        -          -  $     -
                  -------  ---------  -------  -------  ---------  -------
Total             535,160  1,179,824  $  0.83   62,704    138,239  $85,655
(1) Does not include Toll shipments from Nordural
              FORWARD PRICED SALES - As of December 31, 2005
                    2006      2007      2008     2009      2010    2011-
                   (1)(2)     (2)       (2)      (2)       (2)     2015(2)
                  -------  ---------  -------  -------  ---------  -------
Base Volume
   Pounds (000)   437,381    374,565  240,745  231,485    231,485  826,733
   Metric Tons    198,393    169,900  109,200  105,000    105,000  375,000
   Percent of
    estimated
    capacity           28%        22%      14%      14%        14%      10%
Potential Additional Volume(2)
   Pounds (000)    55,556    111,113  220,903  231,485    231,485  826,733
   Metric Tons     25,200     50,400  100,200  105,000    105,000  375,000
   Percent of
    estimated
    capacity            4%         7%      13%      14%        14%      10%
(1) The forward priced sales in 2006 exclude January 2006 shipments to
    customers that are priced based upon the prior month's market price.
(2) Certain financial sales contracts included in the forward priced sales
    base volume for the period 2006 through 2015 contain clauses that
    trigger potential additional sales volume when the market price for a
    contract month is above the base contract ceiling price.  These
    contracts will be settled monthly and, if the market price exceeds the
    ceiling price for all contract months through 2015, the potential
    additional sales volume would be equivalent to the amounts shown above.
Contact:
Michael Dildine
831-642-9364
Contact via http://www.marketwire.com/mw/emailprcntct?id=68BB9835F6080A1A

SOURCE: Century Aluminum Company

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