ALSTOM exits the industrial valve business

After the sales of ALSTOM Vannes (industrial valves) to Tyco
in April 1999 and ALSTOM Automotive and Painting Systems to
Dürr in September 1999, ALSTOM is now divesting its share
in ALSTOM VELAN. This company, based in Lyons (France) and
specialising in industrial valves for nuclear applications and
cryogenics, was until now a jointly owned subsidiary of ALSTOM
and Velan Inc. ALSTOM VELAN will now be controlled by the
Canadian Group Velan.

Velan Inc. is a world leader in the manufacture of
industrial valves. The group, based in Montreal (Quebec) and
quoted on the Montréal Stock Exchange, had in 1998 total
sales of 180 million euros. Velan employs approximately 1100
people in North America and 245 in the rest of the world, at 11
production sites in Canada, the United States, the UK,
Portugal, Korea, Taiwan and France.

This disposal is part of ALSTOM's previously announced
strategy to refocus its Industry sector.