Exhibit 99.1

For Information:  Scott Lamb
Telephone: (713) 332-4751                                       January 12, 2004

            KAISER ALUMINUM FILES COURT MOTIONS REGARDING PENSION AND
                          POST-RETIREMENT BENEFIT PLANS

      HOUSTON, Texas, January 12, 2004 -- Kaiser Aluminum said today it has
filed three related motions with the U.S. Bankruptcy Court for the District of
Delaware to enable the company to substantially reduce or eliminate
ongoing/future cash requirements for pension and post-retirement benefit plans
as it seeks to make further progress on its path to emergence from Chapter 11 in
mid-2004. The company has stated since the inception of its Chapter 11
proceedings that these legacy items were among the major issues in the cases
that had to be addressed before the company could successfully reorganize.

      In particular, the company filed:

   -  An 1114 motion seeking Court approval to terminate postretirement benefit
      programs (such as medical and life insurance) for salaried and hourly
      employees and retirees. Estimated 2003 post-retirement medical plan
      payments were in the range of $60 million and such costs continue to
      escalate significantly from year to year. Approximately 4,000 salaried
      retirees and their dependents are enrolled in company-sponsored retiree
      medical benefit programs. Approximately 7,000 hourly retirees and their
      dependents are enrolled in company-sponsored hourly retiree medical
      benefit programs.
   -  A motion seeking Court approval for a distress termination of Kaiser's
      U.S. defined benefit pension plans for hourly employees. The motion also
      seeks approval for the implementation of replacement benefits under
      defined contribution arrangements for active hourly employees.
      Approximately 7,000 hourly retirees or surviving spouses are currently
      receiving monthly payments from various Kaiser-sponsored defined benefit
      retirement plans. In a distress termination of a pension plan, the Pension
      Benefit Guaranty Corporation provides a guarantee of participants' vested
      pension benefits up to certain monetary limits.
   -  An 1113 motion seeking Court approval to reject certain of its U.S.-based
      collective bargaining agreements, including those with the United
      Steelworkers of America and the International Association of Machinists.
      The filing is being made solely to allow Kaiser to proceed with the
      aforementioned distress termination of the pension plans associated with
      each of the union contracts. Because the USWA and the IAM have not agreed
      to a termination of the pension plans, the Company has no alternative but
      to make an 1113 filing. The affected collective bargaining agreements
      cover the following Kaiser plants in the United States: Trentwood and
      Mead, Washington; Gramercy, Louisiana; Newark, Ohio; Sherman, Texas;
      Tulsa, Oklahoma; and Richmond, Virginia.

      A hearing on these motions has not yet been scheduled.

      Kaiser President and Chief Executive Officer Jack A. Hockema said, "This
is a difficult but essential step in order for Kaiser to complete its
restructuring and emerge from Chapter 11 in mid 2004. Unfortunately, the
exhaustive analysis that we've done in support of our business plan shows that
the restructured Kaiser Aluminum will be unable to continue to fund pension and
other post-retirement benefits as they are presently offered. We have discussed
possible compromise positions with organized labor - and with the official
committee of retired salaried employees. Despite the filing of these motions, we
expect to continue such discussions."

      Hockema added, "We have communicated to union representatives that the
1113 motion is solely intended to address the defined benefit pension plan issue
and no other changes are contemplated. As a result, we are confident that the
filing will not affect the day to day operation of the facilities covered by
these collective bargaining agreements."

      Kaiser Aluminum Corporation (OTCBB: KLUCQ) is a leading producer of
fabricated aluminum products, alumina, and primary aluminum.

                                      F-967

      Company press releases may contain statements that constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. The company cautions that any such
forward-looking statements are not guarantees of future performance and involve
significant risks and uncertainties, and that actual results may vary materially
from those expressed or implied in the forward-looking statements as a result of
various factors.