ALSTOM signs largest UK contract for high speed tilting
trains

ALSTOM today signed a 1.8 billion euro contract with the
Virgin Rail Group for a new fleet of high-speed tilting
trains.

This order is the single most important rail contract in the
UK for many decades and the most advanced deal since British
rail privatisation started in 1995. These new trains form the
centrepiece of Virgins plans for delivering a radically
improved service on the West Coast Trains franchise, which runs
key mainline services from Scotland, North West England, the
Midlands and North Wales to London.

Under a Train Service Provision leasing deal, ALSTOM and
Fiat Ferroviaria will design, supply and maintain a fleet of 53
tilting trains capable of travelling at speeds of up to 225
kph. The Virgin Rail Group also have an option to increase the
number of cars by 44.

The rolling stock has an estimated value of around 850
million euros, while the maintenance contract is worth around
960 million euros. The financing has been arranged by Angel
Leasing Company, a wholly owned subsidiary of the Royal Bank of
Scotland.

The new West Coast trains will use the proven technology of
Fiat's Pendolino tilting system and ALSTOM's Onix propulsion
system, to ensure reduced journey times, reliable operation and
passenger comfort.

Particular attention has been paid to the interior design of
the train, which will offer full catering facilities, a
separate galley, retail shop and an advanced passenger
information system, with an option for at-seat entertainment
systems.

The trains will be built at ALSTOMs factory in
Birmingham, England. A pre-series train will be completed and
ready for testing in July 2000. The first train will be
delivered in early 2001, with the full fleet delivered in
2002.

André Navarri, President of ALSTOM's Transport Sector,
said: 'We look forward to delivering a train that will set new
standards in passenger comfort and reliability.

ALSTOM is effectively taking the lead in upgrading the West
Coast Main Line service, providing not only this new fleet of
state-of-the-art tilting trains, but also a brand new
signalling system for the route. This is arguably the most
significant investment in the UK rail network since
privatisation and confirms ALSTOM's leading role in the current
renaissance of UK rail travel.'

Under the terms of the contract, ALSTOM and Fiat Ferroviaria
will also become Depot Facility Operator for six West Coast
depots.

From 27 February 1999, ALSTOM and Fiat Ferroviaria will
assume responsibility for the maintenance of the existing and
future West Coast rolling stock fleet under a special purpose
company, West Coast Traincare Limited (WCTC). Part of
WCTCs role will be to ensure the smoothest possible
transition from the current fleet to the new tilting
trains.

Mike Lloyd, Senior Vice-President of ALSTOM
Transports Passengers Business, added: 'We have
considerable experience of service provision agreements
worldwide, originating from our contract with London
Underground for the Northern Line in the UK. The comprehensive
maintenance and customer support package for the West Coast
Main Line reflects our expertise in managing and delivering
innovative and complex contracts. We are confident that we will
provide Virgin with the highest standards of service.'

This announcement follows the selection by Railtrack of
ALSTOM to fit the West Coast Main Line with a new
state-of-the-art train control system. The contract covers the
design, development and installation of the new system on up to
1,500 trains and along the line.