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ALSTOM acquires two companies specialised in railway
maintenance in Australia

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Melbourne Transport Enterprises (MTE) has just confirmed the
supply and delivery of 58 new three-car trains to ALSTOM, to be
used on the Hillside network in Melbourne.

As part of this order, ALSTOM has acquired two maintenance
sites: the Ballarat site, specialising in the refurbishment of
rolling stock, and the Hillside site, specialising in
infrastructure and rolling stock maintenance. Both sites employ
approximately 550 people.

Australia's State of Victoria Government awarded Melbourne's
Hillside Train franchise to CGEA Transport's subsidiary,
Melbourne Transport Enterprises (MTE), in July 1999. As a
partner of CGEA Transport Asia Pacific Ltd., ALSTOM will supply
and maintain the rolling stock, maintain the existing fleet, 45
of which will be refurbished, and assume responsibility to
manage the entire infrastructure associated with the Hillside
network. ALSTOM will upgrade the Hillside network signalling
system in the early period of this franchise. These projects
will run over a period of 15 years and the total value for
ALSTOM is some 900 million euros.

This decision marks a new phase in the successful
involvement of ALSTOM in the privatisation process undertaken
by Australia's Victoria Government. Government officials
awarded the Hillside Train franchise to MTE in July.

Commenting on what is the most significant order to date for
ALSTOM in Australia, Michel Moreau, President of ALSTOM's
Transport Sector, said: 'This is probably one of the most
complex contracts that we have ever signed. It goes not only
from the conception, delivery and maintenance of trains, but
also covers infrastructure and right down to maintenance of
escalators in stations - a scope never done before, by ALSTOM
or anyone else in the industry. Long-term service provision is
a most important growth vector for our company. We are very
committed to the Australian market.'