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ALSTOM sells its heavy duty gas turbine business to General

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ALSTOM and General Electric (GE) today signed an agreement
transferring 100% ownership of ALSTOM's heavy duty gas turbine
business to GE, whilst ALSTOM retains 100% ownership of its
industrial gas turbine business.

In 1989, EGT NV was established, owned 90% by ALSTOM and 10%
by GE. This holding company regroups three companies, two of
which are dedicated to the manufacture of heavy duty gas
turbines under a licence from GE (AGT SA in France and AGT GmbH
in Germany), and the third which is specialised in industrial
gas turbines using ALSTOM technology (AGT Ltd in the UK).

According to the terms of the operation, EGT NV will sell to
GE the heavy duty gas turbine business (AGT SA and AGT GmbH,
including their activities in Argentina and Singapore), whilst
ALSTOM will acquire GE's stake in EGT NV. The net consideration
of both transactions will be US$910 million.

The heavy duty gas turbine business concerned by this
operation has estimated sales of 750 million euros in 1998/99
and employs approximately 2,500 people. The industrial gas
turbine business, which will become a 100%-owned ALSTOM
company, has estimated sales of 380 million euros.

With this transaction, all the current technology agreements
in the area of heavy duty gas turbines will be discontinued,
and ALSTOM will now be able to pursue an independent

This agreement is the subject of appropriate procedures with
employee representative bodies and is subject to approval from
the relevant regulatory authorities.

Pierre Bilger, ALSTOM's Chairman and CEO, welcomed the
transaction: 'This is a satisfactory conclusion to our licence
agreement to the benefit of our clients and shareholders.'