February 14, 2008

Century Reports 2007 Financial Results

MONTEREY, CA, Feb 14, 2008 (MARKET WIRE via COMTEX News Network) -- Century Aluminum Company (NASDAQ: CENX) today reported a net loss of $112.3 million ($2.74 per basic and diluted share) for the fourth quarter of 2007. Reported fourth quarter results were impacted by a net after-tax charge of $147.7 million ($3.61 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting. Quarterly results were impacted by a tax benefit of $4.0 million ($0.10 per basic share) related to the increase in the carrying amount of deferred tax assets as a result of a state tax law change. The dilutive effect of the convertible notes, options and service-based awards would reduce basic EPS by $0.05 per share.

For the fourth quarter of 2006, the company reported a net loss of $119.1 million ($3.67 per basic and diluted share). Reported results for this quarter were impacted by an after-tax charge of $174.3 million ($5.37 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting and by a gain on a sale of surplus land. The dilutive effect of the options, convertible notes and service-based awards would reduce basic EPS by $0.06 per share.

Recent highlights include:

--  2007 financial results were strong.  Free cash flow* increased 55
    percent over 2006.  Shipment volumes were 13 percent higher and realized
    prices increased 2 percent.
--  The 40,000 tonne expansion of the Grundartangi, Iceland plant was
    completed in November, on schedule and on budget. This latest development
    was the culmination of a three-year program which increased the smelter's
    capacity from 90,000 to 260,000 tonnes per year.
--  Significant progress was made on the greenfield smelter project near
    Helguvik, Iceland, including the receipt of a positive opinion by the
    National Planning Agency.  Development plans for the project are well
    advanced.
--  Hawesville's proposed new long-term power contract was filed with the
    Kentucky Public Service Commission. The contract would provide the smelter
    with cost based power through 2023.  The parties involved expect the
    transaction to close during the second quarter of 2008.
--  All primary aluminum facilities operated safely at or above capacity.

    * A reconciliation of non-GAAP financial measures to GAAP financial
    measures is presented in Schedule I of this press release.


For 2007, Century reported a net loss of $101.2 million ($2.72 per basic and diluted share). Included in these results is a net after-tax charge of $328.3 million ($8.83 per basic and diluted share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting. Full year results were impacted by a tax benefit of $8.3 million ($0.22 per basic share) related to the increase in the carrying amount of deferred tax assets as a result of a state tax law change. The dilutive effect of the convertible notes, options and service-based awards would reduce basic EPS by $0.37 per share.

For 2006, Century reported a net loss of $41.0 million ($1.26 per basic and diluted share). Results for 2006 include a net after-tax charge of $241.7 million ($7.46 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting and by a gain on the sale of surplus land. The dilutive effect of the convertible notes, options and service-based awards would reduce basic EPS by $0.17 per share.

Sales for the fourth quarter of 2007 were $432.1 million compared with $424.4 million for the fourth quarter of 2006. Shipments of primary aluminum for the 2007 fourth quarter were 198,138 tonnes, compared with 181,675 tonnes shipped in the year-ago quarter. Cash used to settle forward contracts that do not qualify for cash flow hedge accounting was $20.0 million in the fourth quarter of 2007 compared to $12.3 million in the fourth quarter of 2006.

Sales for 2007 were $1.8 billion compared with $1.6 billion for 2006, and total 2007 primary aluminum shipments of 766,951 tonnes compared with 679,939 tonnes shipped in 2006. Cash used to settle forward contracts that do not qualify for cash flow hedge accounting was $98.3 million in 2007 compared to $54.2 million in 2006.

"Century made good progress in 2007 toward its strategic objectives of lowering unit production costs, increasing global diversification and addressing our long-term cost structure," said president and chief executive officer Logan W. Kruger. "Our financial results were strong and included record shipments and cash flow.

"During the fourth quarter, we completed the latest expansion of Nordural's smelter at Grundartangi, Iceland. The entire three-year project, which almost tripled the size of the plant, was implemented on time and on budget. The smelter is now producing at its 260,000 tonne per year capacity, and is operating well. We are proud of the team which delivered this impressive result, while simultaneously operating the plant in an efficient and safe manner.

"At our greenfield smelter project near Helguvik, Iceland, we made important progress. We signed agreements with two geothermal power providers and with the national power transmission company. We received a favorable opinion from the National Planning Agency on our environmental impact assessment. We raised the equity financing for the plant's first two phases and became the first U.S. company to list on the Iceland stock exchange. Lastly, we have assembled an experienced project team; they are now completing the final steps required for the commencement of construction.

"We see 2008 as another year of opportunity for Century," Mr. Kruger concluded. "We will begin the major construction phase of our new plant in Iceland. We will also commence a modest two year capital improvement program for our U.S. plants. These activities are taking place in an industry environment that we would characterize as favorable over the medium and longer-term."

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

Century Aluminum's quarterly conference call is scheduled for 5:00 p.m. Eastern time today. To listen to the conference call and to view related presentation materials, go to www.centuryaluminum.com and click on the conference call link on the homepage.

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

Astridur Thordardottir, Senior Manager-Corporate Finance, Landsbanki Islands hf.

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

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.

                         Century Aluminum Company
                  Consolidated Statements of Operations
                 (in Thousands, Except Per Share Amounts)
                                (Unaudited)
                           Three months ended            Year ended
                              December 31,              December 31,
                        ------------------------  ------------------------
                            2007         2006         2007         2006
                        -----------  -----------  -----------  -----------
NET SALES:
   Third-party
    customers           $   337,678  $   332,282  $ 1,449,750  $ 1,299,035
   Related parties           94,452       92,085      348,413      259,531
                        -----------  -----------  -----------  -----------
                            432,130      424,367    1,798,163    1,558,566
COST OF GOODS SOLD          372,207      331,291    1,434,700    1,210,044
                        -----------  -----------  -----------  -----------
GROSS PROFIT                 59,923       93,076      363,463      348,522
SELLING, GENERAL AND
 ADMINISTRATIVE
 EXPENSES                    19,136       10,724       59,920       39,363
                        -----------  -----------  -----------  -----------
OPERATING INCOME             40,787       82,352      303,543      309,159
INTEREST EXPENSE - Net       (2,983)     (10,272)     (22,109)     (35,297)
NET LOSS ON FORWARD
 CONTRACTS                 (228,978)    (282,891)    (508,875)    (389,839)
OTHER INCOME (EXPENSE)
 - Net                          124        7,019       (3,302)       6,898
                        -----------  -----------  -----------  -----------
LOSS BEFORE INCOME
 TAXES AND EQUITY IN
 EARNINGS OF JOINT
 VENTURES                  (191,050)    (203,792)    (230,743)    (109,079)
INCOME TAX BENEFIT           74,453       79,716      113,849       52,041
                        -----------  -----------  -----------  -----------
LOSS BEFORE EQUITY IN
 EARNINGS OF JOINT
 VENTURES                  (116,597)    (124,076)    (116,894)     (57,038)
EQUITY IN EARNINGS OF
 JOINT VENTURES               4,294        4,953       15,645       16,083
                        -----------  -----------  -----------  -----------
NET LOSS                $  (112,303) $  (119,123) $  (101,249) $   (40,955)
                        ===========  ===========  ===========  ===========
EARNINGS PER COMMON
 SHARE
   Basic - Net loss     $     (2.74) $     (3.67) $     (2.72) $     (1.26)
   Diluted - Net loss   $     (2.74) $     (3.67) $     (2.72) $     (1.26)
WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING
   Basic                     40,973       32,457       37,199       32,395
   Diluted                   40,973       32,457       37,199       32,395
                         Century Aluminum Company
                        Consolidated Balance Sheets
                          (Dollars in Thousands)
                                (Unaudited)
                                              December 31,   December 31,
ASSETS                                            2007           2006
                                              -------------  -------------
Current Assets:
   Cash                                       $      60,962  $      96,365
   Restricted cash                                      873          2,011
   Short-term investments                           280,169              -
   Accounts receivable - net                         93,451        113,371
   Due from affiliates                               26,693         37,542
   Inventories                                      175,101        145,410
   Prepaid and other current assets                  40,091         19,830
   Deferred taxes - current portion                  69,858        103,110
                                              -------------  -------------
      Total current assets                          747,198        517,639
Property, plant and equipment - net               1,260,040      1,218,777
Intangible asset - net                               47,603         61,594
Goodwill                                             94,844         94,844
Deferred taxes - less current portion               321,068        203,451
Other assets                                        107,518         88,929
                                              -------------  -------------
      Total                                   $   2,578,271  $   2,185,234
                                              =============  =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
   Accounts payable, trade                    $      79,482  $      64,849
   Due to affiliates                                216,754        282,282
   Accrued and other current liabilities             60,482         75,143
   Long term debt - current portion                       -         30,105
   Accrued employee benefits costs - current
    portion                                          11,997         11,083
   Convertible senior notes                         175,000        175,000
   Industrial revenue bonds                           7,815          7,815
                                              -------------  -------------
      Total current liabilities                     551,530        646,277
                                              -------------  -------------
Senior unsecured notes payable                      250,000        250,000
Nordural debt                                             -        309,331
Accrued pension benefit costs - less current
 portion                                             14,427         19,239
Accrued postretirement benefits costs - less
 current portion                                    184,853        206,415
Due to affiliates - less current portion            913,683        554,864
Other liabilities                                    39,643         27,811
Deferred taxes                                       62,931         41,587
                                              -------------  -------------
      Total noncurrent liabilities                1,465,537      1,409,247
                                              -------------  -------------
Shareholders' Equity:
   Common stock (one cent par value,
    100,000,000 shares authorized; 40,988,058
    shares outstanding at December 31, 2007
    and 32,457,670 at December 31, 2006)                410            325
   Additional paid-in capital                       857,787        432,270
   Accumulated other comprehensive loss             (51,531)      (166,572)
   Accumulated deficit                             (245,462)      (136,313)
                                              -------------  -------------
      Total shareholders' equity                    561,204        129,710
                                              -------------  -------------
      Total                                   $   2,578,271  $   2,185,234
                                              =============  =============
                         Century Aluminum Company
                  Consolidated Statements of Cash Flows
                          (Dollars in Thousands)
                                (Unaudited)
                                                          Year ended
                                                         December 31,
                                                       2007        2006
                                                    ----------  ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                         $ (101,249) $  (40,955)
   Adjustments to reconcile net loss to net cash
    (used in) provided by operating activities:
     Unrealized net loss on forward contracts          411,023     333,081
     Depreciation and amortization                      78,060      69,220
     Deferred income taxes                            (135,071)   (126,342)
     Pension and other postretirement benefits          11,038      14,561
     Workers' compensation                                (743)        987
     Stock-based compensation                            5,962       5,582
     Excess tax benefits from share based
      compensation                                        (588)     (1,394)
     (Gain) loss on disposal of assets                      72      (6,851)
     Non-cash loss on early extinguishment of debt       2,461           -
     Purchase of short-term trading securities        (721,271)          -
     Sale of short-term trading securities             441,102           -
     Undistributed earnings of joint ventures          (15,645)    (16,083)
     Change in operating assets and liabilities:
       Accounts receivable - net                        19,920     (30,355)
       Due from affiliates                              10,850     (18,904)
       Inventories                                     (26,080)    (28,524)
       Prepaid and other current assets                (12,540)         89
       Accounts payable, trade                          18,211       9,608
       Due to affiliates                                13,188       9,701
       Accrued and other current liabilities           (13,660)     18,965
       Other - net                                       9,642      (7,033)
                                                    ----------  ----------
     Net cash (used in) provided by operating
      activities                                        (5,318)    185,353
                                                    ----------  ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property, plant and equipment           (24,525)    (23,602)
   Nordural expansion                                  (88,764)   (193,511)
   Proceeds from sale of property, plant and
    equipment                                              543       7,759
   Restricted cash deposits                              3,738      (2,583)
                                                    ----------  ----------
     Net cash used in investing activities            (109,008)   (211,937)
                                                    ----------  ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Borrowings of long-term debt                         30,000     109,000
   Repayment of long-term debt                        (369,436)       (581)
   Net repayments under revolving credit facility            -      (8,069)
   Excess tax benefits from share based
    compensation                                           588       1,394
   Issuance of common stock - net of issuance costs    417,771       3,453
                                                    ----------  ----------
     Net cash provided by financing activities          78,923     105,197
                                                    ----------  ----------
NET (DECREASE) INCREASE IN CASH                        (35,403)     78,613
CASH, BEGINNING OF YEAR                                 96,365      17,752
                                                    ----------  ----------
CASH, END OF YEAR                                   $   60,962  $   96,365
                                                    ==========  ==========
                       Century Aluminum Company
                        Selected Operating Data
                              (Unaudited)
                     SHIPMENTS - PRIMARY ALUMINUM
                       Direct (1)                       Toll
             -----------------------------  ----------------------------
               Metric     (000)              Metric     (000)    (000)
               Tons       Pounds   $/Pound    Tons     Pounds    Revenue
             ---------  ---------  -------  -------  ---------  ---------
2007
4th Quarter    133,002    293,219  $  1.07   65,136    143,600  $ 119,635
3rd Quarter    134,495    296,509  $  1.13   61,046    134,583  $ 120,554
2nd Quarter    132,496    292,104  $  1.19   56,154    123,798  $ 117,667
1st Quarter    131,568    290,057  $  1.15   53,054    116,964  $ 114,383
             ---------  ---------  -------  -------  ---------  ---------
Total          531,561  1,171,889  $  1.13  235,390    518,945  $ 472,239
2006
4th Quarter    131,041    288,895  $  1.12   50,634    111,630  $ 100,847
3rd Quarter    126,810    279,568  $  1.07   42,788     94,331  $  81,424
2nd Quarter    132,590    292,311  $  1.12   39,125     86,255  $  77,702
1st Quarter    132,378    291,843  $  1.03   24,573     54,174  $  45,166
             ---------  ---------  -------  -------  ---------  ---------
Total          522,819  1,152,617  $  1.09  157,120    346,390  $ 305,139
(1) Does not include Toll shipments from Nordural
           FORWARD PRICED SALES - As of December 31, 2007
                 2008(1)                               2012-2015
                  (2)       2009(2)  2010(2)  2011(2)    (2)
               ---------  ---------  -------  -------  ---------
Base Volume
  Pounds (000)   246,958    231,485  231,485  165,347    661,386
  Metric Tons    112,018    105,000  105,000   75,000    300,000
   Percent of
    estimated
    capacity         14%        13%      13%       9%         9%
Potential
 Additional
 Volume(2)
  Pounds (000)   220,903    231,485  231,485  165,347    661,386
  Metric Tons    100,200    105,000  105,000   75,000    300,000
  Percent of
   estimated
   capacity           12%        13%      13%       9%         9%
  (1) The forward priced sales in 2008 exclude January 2008 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 2008 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.
                                SCHEDULE I
                         Century Aluminum Company
      Reconciliation of Cash Flow from Operations to Free Cash Flow
                          (Dollars in Thousands)
                                (Unaudited)
                                                           Year ended
                                                          December 31,
                                                        2007       2006
                                                      ---------  ---------
Net cash (used in) provided by operating activities   $  (5,318) $ 185,353
Increase in short-term investments - net                280,169          -
Purchase of property, plant and equipment (1)           (24,525)   (23,602)
                                                      ---------  ---------
Free Cash Flow                                        $ 250,326  $ 161,751
                                                      =========  =========
Footnote:
(1) Excludes Grundartangi, Iceland expansion
The Company's earnings release includes a discussion of free cash flow,
which is not a financial measure based upon generally accepted accounting
principles, or GAAP.  The Company defines free cash flow as net cash (used
in) provided by operating activities less capital expenditures (other than
capital expenditures related to the expansion of the Company's
Grundartangi, Iceland facility) and including the net increase in short
term investments due to their liquidity.  The Company's calculation of free
cash flow may not be comparable to similarly titled measures reported by
other companies due to differences in the components used in its
calculation.  The Company's earnings release includes a reconciliation of
free cash flow to cash flow from operating activities, which is the most
directly comparable GAAP financial measure.  Free cash flow should not be
considered as a substitute for cash flows from operating activities as
determined in accordance with GAAP.
The Company's management believes the presentation of free cash flow is a
useful measure that helps investors evaluate the Company's capacity to fund
its ongoing cash operating requirements, including capital expenditures and
debt service obligations, and to make acquisitions or other investments.

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

Shelly Lair (investors)
831-642-9357


SOURCE: Century Aluminum Company


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