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Service leadership award in the North American boiler
market

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This Frost & Sullivan Award is an acknowledgment of the
company’s market leadership in providing the best value
to its customers through quality of work and customer service.
The Award also lauds an effective and sustainable growth
strategy through excellence in factors that drive customer
satisfaction, loyalty and competitiveness in the market.

ALSTOM Power Service – part of the ALSTOM group
– is a global organization whose revenue approximated
€3.0 billion (approximately $4.0 billion) in the fiscal
year 2004/2005 that offers a range of products and services
from spare parts and field services to turnkey operation and
maintenance. It provides tailor-made services –
life-cycle management, performance improvements, risk
management, cost management, and environmental compliance
– catering to needs of customers.

“The North American region accounts for 27 percent of
the company’s worldwide service revenue and reflects the
company’s demonstrated customer retention
capabilities,” says Frost & Sullivan Research Analyst
Ravi Krishnamurthy. “With a 50 percent probable renewal
rate, ALSTOM Power Service retains a larger share of its
existing customers than its nearest competitor at 25
percent.”

Among the power plant owners that prefer to evaluate
competitive bids for boiler services, ALSTOM tops the list with
nearly 22 percent of the respondents (in this research)
choosing to consider the company on priority, compared with 14
percent for its closest competitor.

ALSTOM’s technological expertise and execution
capabilities beyond its own fleet augurs well for the customers
in the North American boiler maintenance, repair and
overhauling (MRO) services markets. The customer perception of
value for price and of quality of work provided is currently
the highest for ALSTOM. Price being very dynamic and
market-driven, the company constantly reviews its value
proposition to retain its leadership position.

For its proven ability to satisfy customer needs in terms of
lead time, technical know-how, “getting it right”
the first time, and continuous innovation and introduction of
new service products such as parts pooling, emergency response,
and full-plant outages, ALSTOM is the worthy recipient of the
2005 Service Leadership Award.

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About Frost & Sullivan

Frost & Sullivan, a global growth consulting company,
has been partnering with clients to support the development of
innovative strategies for more than 40 years. The company's
industry expertise integrates growth consulting, growth
partnership services and corporate management training to
identify and develop opportunities. Frost & Sullivan serves
an extensive clientele that includes Global 1000 companies,
emerging companies, and the investment community, by providing
comprehensive industry coverage that reflects a unique global
perspective and combines ongoing analysis of markets,
technologies, econometrics, and demographics.

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