ALSTOM has launched a stock option plan conditioned on a
significant increase in share price

ALSTOM has launched a stock option plan for 850 individuals.
The objective of the Stock Option Plan is to attract and
motivate key employees who have a significant impact on
ALSTOM's performance.

ALSTOM's Board of Directors met on April 22,1999 and granted
options to subscribe to 2 035 000 new shares of ALSTOM at a
subscription price of 27.4 euros per share, corresponding to
the average share price on the Paris Stock Exchange during the
last 20 trading days preceding the Board meeting.

These options can only be exercised if, during the 5 year
period after the date of the grant, the average price of the
ALSTOM share on the Paris Bourse is at least 38.00 euros over a
period of any 40 consecutive trading days. If this condition is
met , the underlying shares can be subscribed during the
succeeding 3 year period.

The selection of beneficiaries and the number of options
granted take into account the position, performance and
potential of each individual. In addition to 500 senior
executives and managers, this programme involves 350 high
potential young managers. It covers 30 different
nationalities.

This plan was authorised at the time of the initial public
offering by a shareholders' general meeting held on 17 June
1998 and represents less than 1 % of the share capital of
ALSTOM.

Pierre Bilger, Chairman and CEO, has commented on this
scheme : ' This share option plan will further align the
interests of key executives and managers with those of our
shareholders. It is a new type of incentive scheme for ALSTOM
which has been enabled by the flotation of the company and I am
confident that it will reinforce the management's dedication to
profitable growth. '