Orders and sales for the first quarter ended 30 june
1999

First Quarter orders and sales in line with management
expectations for full year 1999/2000

Sustained order intake

Good growth in sales

Strong order backlog at 21 billion, representing 18
months of sales

Commenting on the First Quarter Orders and Sales, announced
this morning, Pierre Bilger, Chairman and Chief Executive
Officer of ALSTOM stated:

'We are beginning to see the first effects of the high
levels of order intake of the past two years translating
through to sales, leading to a 7% increase for the quarter.
Following a particularly high level of orders received in the
last quarter of 1998/99, order intake in the first quarter was
sustained. The 6% decrease reflects the high level of orders
recorded in the first quarter 1998/99 in Transport and Marine.
Overall, we remain confident about the full year outlook'.

Orders and Sales

During the First Quarter 1999/00, ALSTOM received orders
amounting to 3 711 million, a decrease of 6% compared to
the same period last year. This follows a very strong order
intake in the last quarter of 1998/99 of over 5
billion. Recent contracts announced, but not recorded in Q1,
include the 2 100 MW Manjung coal-fired power plant in Malaysia
(1 billion), twelve double-deck TGV trainsets for SNCF
(230 million), XTRAPOLIS suburban trainsets,
train maintenance and signaling equipment in Melbourne,
Australia (900 million) and the Letter of Intent for 2 x
1 000-cabin cruise ships from P&O.

There has been no material shift in the breakdown of orders
by geographic zone in the first quarter compared to the full
year 1998/99. Europe continues to represent over 50% of total
orders, with high order intake in the UK particularly in Energy
and Transport. The share of Asia remained stable, mainly as a
result of the large boiler contract awarded at Wai Gao Qiao in
China.

Sales in the First Quarter 1999/00 amounted to 3 496
million, a 7% increase compared to the same period last year,
mainly as a result of the high levels of past order intake of
the past two years, particularly in Transport and Marine.

Breakdown by Sector

Energy recorded a strong increase in order intake (+28%).
Orders increased significantly in both North and South America
and Asia-Pacific compared to Q1 1998/99. Major orders include 2
x 900 MW advanced supercritical boilers in Wai Gao Qiao
(China), 18 x 100 MW hydro turbine-generator sets for Porto
Primavera (Brazil) and the 215 MW combined heat and power plant
in Shotton (UK). The 17% decrease in sales in the Energy Sector
is the direct result of the phasing of shipments of major power
plant contracts as well as the low level of order intake in the
mid-1990s, particularly in large turnkey projects.

The 7% decrease in sales in Transmission & Distribution
is the mechanical effect of low order intake in the last
quarter of 1998/99 and the first quarter of 1999/00 (-4%). In
Europe orders received showed an increase compared to Q1
1998/99 with significant activity in France, Germany and the
UK. This however, was off-set by a still below-average level of
tender activity in Asia, affecting, in particular, high voltage
power transmission and protection & control segments.

At over 1 billion, orders received in Transport
remained at a high level but were down 16% in Q1 1999/00
compared to the exceptionally high level of order intake in the
first quarter of last year which had included the orders for
the Singapore driver-less metro and trainsets for Amtrak. Major
orders received during the first quarter 1999/00 include 110
trainsets for Deutsche Bahn and propulsion equipment for
Bombardier. The high level of past orders has begun to
translate into sales, with Transport recording a 47% increase
in the first quarter compared to the same period last year.
Mass transit recorded particularly strong sales with deliveries
recorded for the Athens, Chicago, Istanbul, London, New York,
Paris and Sao Paolo metro systems. Two TGV trainsets for the
Seoul-Pusan high speed line (Korea) were also delivered during
the quarter.

Industry recorded a 6% increase in orders received with
major coal and ash handling system contracts awarded in Taiwan
(Ho-Ping) and China (Port of Tianjin) during the first quarter.
Sales decreased 11% due to the low level of orders received in
the last quarter of 1998/99.

There were no major orders received in Marine in the first
quarter 1999/00 compared to two large cruise ships recorded in
Q1 1998/99. Since the end of the quarter, P&O have signed a
letter of intent with ALSTOMs shipyard to purchase 2 x 1
000-cabin cruise ships. The very substantial increase in sales
(+69%) is mainly due to the timing of ship deliveries. In the
first quarter, ALSTOM delivered the 598-cabin cruise ship, the
Mistral, to French shipowner, Festival Cruises. This sales
growth is also a result of the continuing success of the CAP 21
strategic programme which has led to increased productivity at
the shipyard, allowing a significant reduction in the
construction time of vessels.

Contracting recorded a very high level of orders (+16%) in
the first quarter, primarily as a result of two major contracts
in Belgium (facility management) and Morocco (high voltage
transmission lines) as well as an improving business
environment in France. The 13% decrease in sales is not
significant as it is the mechanical accounting effect of a
change in timing of recognition of sales, related to the change
in fiscal year for this ex-Cegelec business.

Notes to Table

* First Quarter 1998/99 restated to include the split of
former Cegelec businesses.

** Energy figures relate to 100% of ALSTOMs Energy
Sector, still including the heavy duty gas turbine business
sold to General Electric on 25 June and the remaining
businesses contributed to ABB ALSTOM POWER on 30 June 1999.
From Q2 1999/00 onwards, ALSTOM will consolidate 50% of ABB
ALSTOM POWERs results on a proportional basis.

Press enquiries : I Baudelaire / S Michel (Tel. +33 1 47 55
23 45)

Investor relations : H Green (Tel. +33 1 47 55 25 78)

investor.relations@chq.alstom.com

Internet : http:\\www.alstom.com