TK Aluminum Ltd. Reports Financial Results for the First Quarter Ended March 31, 2006 (y 2)

Teksid Aluminum is a leading independent manufacturer of aluminum engine castings for the automotive industry. Our principal products are cylinder heads, engine blocks, transmission housings and suspension components. We operate 15 manufacturing facilities in Europe, North America, South America and Asia. Information about Teksid Aluminum is available on our website at www.teksidaluminum.com.

Until September 2002, Teksid Aluminum was a division of Teksid S.p.A., which was owned by Fiat. Through a series of transactions completed between September 30, 2002 and November 22, 2002, Teksid S.p.A. sold its aluminum foundry business to a consortium of investment funds led by equity investors that include affiliates of each Questor Management Company, LLC, JPMorgan Partners, Private Equity Partners SGR SpA and AIG Global Investment Corp. As a result of the sale, Teksid Aluminum is owned by its equity investors through TK Aluminum Ltd., a Bermuda holding company.

ATTACHMENT 1 to Press Release of May 30, 2006

Reconciliation of Net Loss to EBITDA and Adjusted EBITDA

Adjusted EBITDA is a supplemental measure of our performance that is not required by, or presented in accordance with U.S. GAAP. Furthermore, Adjusted EBITDA should not be considered as an alternative to net income (loss) or any other performance measures derived in accordance with U.S. GAAP, or to cash flows from operating activities as a measure of liquidity.

The following is a reconciliation of net loss to EBITDA and to Adjusted EBITDA:

    
        (in thousands of euro)                     Three Months ended
                                                        March 31
                                                     2006       2005

                                                                 as
                                                              restated
        Net loss                                   (18.923)   (8.383)
        Depreciation and amortization               13.922     15.668
        Income tax (benefit) expense               (2.952)     1.799
        Interest expense (income), net              11.880     11.697
        EBITDA                                      3.927      20.781

        Equity earnings of affiliated companies,     (74)       196
        net
        Foreign exchanges losses (gains), net        975      (4.630)
        Other expense (income), net                 (127)      (761)

        Adjustments to EBITDA:
        Restructuring / Severance / Early           1.432      1.176
        retirement expenses (a)
        SEC Filing, SOA and Exchange Offer fees      174        191
        (b)
        Fees payables to affiliates of the           625        625
        investors (c)
        Change in accounting treatment for the        -       (1.281)
        synthetic lease (d)
        Change in accounting principle of            123         -
        Stock-based compensation (SFAS 123R) (e)

        Adjusted EBITDA                             7.055      16.297
    
    (a) Adjustment to eliminate expenses associated with the operational
restructuring, severance, and early retirement programs commenced in
Italy, North America and France. In 2004, early retirement programs in
France were partially subsidized by the French government.

    (b) Adjustment to eliminate the impact of non-recurring expenses incurred
by the Company in connection with its SEC registration process, expired
private exchange offer and consent solicitation.

    (c ) Adjustment to eliminate the impact of fees payable to affiliates of
the investors according to the financial and advisory services
arrangement with affiliates of certain of the equity investors of the
Company. Such item is a specific adjustment as provided by the amendment
of the Senior Credit Facility as executed on April 26, 2005.

    (d) As part of the amendments in connection with our refinancing package,
the change in accounting principle related to the synthetic lease no
longer applies as adjustment to the EBITDA.

    (e) In association with changed accounting treatment of stock-based
compensation expense (SFAS 123R adopted January 1, 2006), for covenant
compliance purposes, the Company should apply, to the relevant financial
measures, the same accounting principles existing at the closing date,
September 30th, 2002.

    Management believes Adjusted EBITDA facilitates comparisons of operating
performance from period to period and company to company by eliminating
potential differences caused by variations in capital structures
(affecting interest expense), tax positions (such as the impact on
periods or companies of changes in effective tax rates or net operating
losses) and the age and book depreciation of tangible assets (affecting
depreciation expense). The Company presents Adjusted EBITDA as it is the
basis against which certain financial tests are measured under our senior
credit facility. The Company also presents EBITDA because management
believes it is frequently used by securities analysts, investors and
other interested parties in evaluating similar companies, the vast
majority of which present EBITDA when reporting their results.
Nevertheless, both EBITDA and Adjusted EBITDA have limitations as an
analytical tool, and you should not consider it in isolation from, or as
a substitute for analysis of, our results of operations as reported under
U.S. GAAP. Some of these limitations are: such measurements do not
reflect our cash expenditures or future requirements for capital
expenditures or contractual commitments; such measurements do not reflect
changes in, or cash requirements for, our working capital needs; such
measurements do not reflect the significant interest expense, or the cash
requirements necessary to service interest or principal payments, on our
debt; although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized will often have to be replaced in
the future, such measurements do not reflect any cash requirements for
such replacements; such measurements are not adjusted for all non-cash
income or expense items that are reflected in our statements of cash
flows; and other companies in our industry may calculate such
measurements differently than we do, limiting such measurements'
usefulness as a comparative measure.

    Because of these limitations, EBITDA and Adjusted EBITDA should not be
considered as a measure of discretionary cash available to us to invest
in the growth of our business.