May 2, 2006

Century Reports First-Quarter 2006 Results

MONTEREY, CA, May 02, 2006 (MARKET WIRE via COMTEX News Network) -- Century Aluminum Company (NASDAQ: CENX) today reported a net loss of $141.6 million, or $4.39 per diluted share, for the first quarter of 2006. Reported first-quarter results were negatively impacted by an after-tax charge of $183.5 million, or $5.69 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 the first quarter of 2005 have been restated to reflect this change.

In the first quarter of 2005, the company reported net income of $11.7 million, or $0.37 per diluted share. Before restatement, the company reported net income of $11.1 million, or $0.35 per diluted share. Reported first-quarter 2005 results were negatively impacted by an after-tax charge of $14.8 million, or $0.46 per diluted share, for mark-to-market adjustments on forward contracts that did not qualify for cash flow hedge accounting.

First-quarter 2006 highlights included:

--  Revenues of $347 million and operating income of $64 million were at
    record levels. Strong incremental profit was realized on the higher level
    of revenue.
--  The Nordural expansion from 90,000 metric tonnes per year (mtpy) to
    220,000 mtpy continued on budget and on schedule for a fourth-quarter 2006
    completion.
--  We secured energy to accelerate an additional 40,000 mtpy expansion at
    Nordural from late 2008 into 2007. With this latest expansion, Nordural's
    capacity will reach 260,000 mtpy by the fourth quarter of 2007.

Sales for the first quarter of 2006 were $346.9 million compared with $285.4 million for the first quarter of 2005. Shipments of primary aluminum for the 2006 first quarter were 156,951 metric tonnes, compared with 152,839 metric tonnes shipped in the year-ago quarter.

"Our team executed well during the quarter," said president and chief executive officer Logan W. Kruger. "Markets remained robust, and plant performance was strong across the board. We also made excellent progress on our strategic objectives. We have secured the energy required to expand Nordural to 260,000 mtpy and are encouraged by the outlook for our proposed greenfield project in Iceland. Finally, we are continuing to actively explore additional growth opportunities."

At the beginning of 2006, Century owned 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 currently 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
                                                          March 31,
                                                                   2005
                                                       2006      Restated
                                                    ----------  ----------
NET SALES:
    Third-party customers                           $  298,473  $  247,410
    Related parties                                     48,473      37,971
                                                    ----------  ----------
                                                       346,946     285,381
COST OF GOODS SOLD                                     270,478     233,814
                                                    ----------  ----------
GROSS PROFIT                                            76,468      51,567
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES            12,119       8,796
                                                    ----------  ----------
OPERATING INCOME                                        64,349      42,771
INTEREST EXPENSE - Net                                  (6,555)     (6,604)
NET LOSS ON FORWARD CONTRACTS                         (286,760)    (23,495)
OTHER INCOME (EXPENSE) - Net                              (161)        545
                                                    ----------  ----------
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN
 EARNINGS OF JOINT VENTURES                           (229,127)     13,217
INCOME TAX (EXPENSE) BENEFIT                            84,356      (4,853)
                                                    ----------  ----------
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF JOINT
 VENTURES                                             (144,771)      8,364
EQUITY IN EARNINGS OF JOINT VENTURES                     3,200       3,366
                                                    ----------  ----------
NET INCOME (LOSS)                                   $ (141,571) $   11,730
                                                    ==========  ==========
EARNINGS (LOSS) PER COMMON SHARE
    Basic - Net income (loss)                       $    (4.39) $     0.37
    Diluted - Net income (loss)                     $    (4.39) $     0.37
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
    Basic                                               32,263      32,057
    Diluted                                             32,263      32,129
                         Century Aluminum Company
                        Consolidated Balance Sheets
                          (Dollars in Thousands)
                                (Unaudited)
                                                  March 31,   December 31,
ASSETS                                              2006          2005
                                                ------------  ------------
Current Assets:
   Cash                                         $     17,512  $     17,752
   Restricted cash                                     6,029         2,028
   Accounts receivable - net                          98,656        83,016
   Due from affiliates                                21,703        18,638
   Inventories                                       127,965       111,436
   Prepaid and other current assets                   23,190        23,918
   Deferred taxes - current portion                   50,475        37,705
                                                ------------  ------------
      Total current assets                           345,530       294,493
Property, plant and equipment - net                1,124,584     1,070,158
Intangible asset - net                                71,381        74,643
Goodwill                                              94,844        94,844
Other assets                                         246,727       143,293
                                                ------------  ------------
      Total                                     $  1,883,066  $  1,677,431
                                                ============  ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
   Accounts payable, trade                      $     61,110  $     61,919
   Due to affiliates                                 207,755       158,682
   Accrued and other current liabilities              47,598        53,715
   Long term debt - current portion                   16,087           581
   Accrued employee benefits costs - current
    portion                                            9,333         9,333
   Convertible senior notes                          175,000       175,000
   Industrial revenue bonds                            7,815         7,815
                                                ------------  ------------
      Total current liabilities                      524,698       467,045
                                                ------------  ------------
Senior unsecured notes payable - net                 250,000       250,000
Nordural debt                                        273,787       230,436
Revolving credit facility                              5,100         8,069
Accrued pension benefit costs - less current
 portion                                              10,638        10,350
Accrued postretirement benefits costs - less
 current portion                                      99,875        96,660
Due to affiliates - less current portion             605,416       337,416
Other liabilities                                     28,988        28,010
Deferred taxes                                        16,890        16,890
                                                ------------  ------------
      Total noncurrent liabilities                 1,290,694       977,831
                                                ------------  ------------
Shareholders' Equity:
   Common stock (one cent par value,
    100,000,000 shares authorized; 32,402,106
    shares outstanding at March 31, 2006 and
    32,188,165 at December 31, 2005)                     324           322
   Additional paid-in capital                        427,668       419,009
   Accumulated other comprehensive loss             (123,389)      (91,418)
   Accumulated deficit                              (236,929)      (95,358)
                                                ------------  ------------
      Total shareholders' equity                      67,674       232,555
                                                ------------  ------------
      Total                                     $  1,883,066  $  1,677,431
                                                ============  ============
                         Century Aluminum Company
                  Consolidated Statements of Cash Flows
                          (Dollars in Thousands)
                                (Unaudited)
                                                      Three months ended
                                                          March 31,
                                                                   2005
                                                       2006      Restated
                                                    ----------  ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                                $ (141,571) $   11,730
   Adjustments to reconcile net income (loss) to
    net cash provided by operating activities:
     Unrealized net loss on forward contracts          286,138      22,269
     Depreciation and amortization                      14,897      13,794
     Deferred income taxes                             (84,356)      4,853
     Pension and other post retirement benefits          3,503       3,214
     Stock-based compensation                            2,559           -
     Excess tax benefits from share based
      compensation                                        (855)          -
     Change in operating assets and liabilities:
          Accounts receivable - net                    (15,640)     (8,202)
          Due from affiliates                           (3,064)        102
          Inventories                                  (16,529)      4,169
          Prepaid and other current assets              (3,398)     (1,395)
          Accounts payable, trade                        4,724      (3,175)
          Due to affiliates                            (11,206)     (9,146)
          Accrued and other current liabilities        (16,325)     (7,951)
          Other - net                                   (2,838)     (3,138)
                                                    ----------  ----------
     Net cash provided by operating activities          16,039      27,124
                                                    ----------  ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property, plant and equipment            (2,632)     (2,540)
   Nordural expansion                                  (68,769)    (48,988)
   Restricted cash deposits                             (4,001)          -
                                                    ----------  ----------
     Net cash used in investing activities             (75,402)    (51,528)
                                                    ----------  ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Borrowings of long-term debt                         59,000     105,325
   Repayment of long-term debt                            (143)    (68,658)
   Net repayments under revolving credit facility       (2,969)          -
   Financing fees                                            -      (4,617)
   Excess tax benefits from share based
    compensation                                           855           -
   Issuance of common stock                              2,380         949
                                                    ----------  ----------
     Net cash provided by financing activities          59,123      32,999
                                                    ----------  ----------
NET INCREASE (DECREASE) IN CASH                           (240)      8,595
CASH, BEGINNING OF PERIOD                               17,752      44,168
                                                    ----------  ----------
CASH, END OF PERIOD                                 $   17,512  $   52,763
                                                    ==========  ==========
                         Century Aluminum Company
                          Selected Operating Data
                                (Unaudited)
                       SHIPMENTS - PRIMARY ALUMINUM
                         Direct (1)                       Toll
                ----------------------------- -----------------------------
                 Metric    (000)               Metric    (000)     (000)
                  Tons     Pounds   $/Pound     Tons     Pounds   Revenue
                --------- --------- --------- --------- --------- ---------
  2006
  1st Quarter     132,378   291,843 $    1.03    24,573    54,174 $  45,166
  2005
  1st Quarter     130,083   286,783 $    0.88    22,756    50,168 $  33,372
  (1) Does not include Toll shipments from Nordural
                FORWARD PRICED SALES - As of March 31, 2006
               2006(1)(2)  2007(2)   2008(2)   2009(2)  2010(2) 2011-2015(2)
                --------  --------  --------  --------  --------  --------
Base Volume
  Pounds (000)   317,418   374,565   240,745   231,485   231,485   826,733
  Metric Tons    143,979   169,900   109,200   105,000   105,000   375,000
  Percent of
   estimated
   capacity           26%       22%       14%       14%       14%       10%
Potential Additional Volume(2)
  Pounds (000)    41,667   111,113   220,903   231,485   231,485   826,733
  Metric Tons     18,900    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 April 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=333CEF9BD05F3629

SOURCE: Century Aluminum Company

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