ALSTOM and SITHE complete financing of 845 million Euro
Mexican power project

ALSTOM and SITHE Energies completed financing of the second
phase of a 460 MW electrical generating facility in Tamuin,
State of Potosí, Mexico. The total capital cost of the
Tamuin generating project is 845 million euros (US$ 700
millions). This Project is the largest single foreign
investment in the Mexican power generation sector to date.

The Project consists of two adjacent 230 MW generating
stations. The first plant (the 'TEG' plant) will sell its
output to subsidiaries of Cemex S.A.; the second (the 'TEP'
plant) will sell to affiliates of Industrias Peñoles S.A.
de C.V. Both phases of the Project will be fired on petroleum
coke supplied by Pemex.

The integrated Project began with CEMEX S.A.'s international
tender in 1998 for the 230 MW TEG power plant to supply energy
and capacity to Cemex subsidiaries. ALSTOM and SITHE won this
tender and closed the related financing in April 2000. A bank
syndicate led by ABN-AMRO and Deutsche Bank led this first
phase financing, and which included A Loans from the
Inter-American Development Bank, B Loan participations and a
tranche of debt covered by COFACE, the French export agency.
The TEG phase one plant commenced construction on 28 April 2000
and is expected to reach commercial operation in late 2002
following a 31-month construction program.

The Project's phase two calls for the construction of the
230 MW sister plant - the TEP facility -- adjacent to the TEG
phase one facility. Phase two will sell power to subsidiaries
of Industrias Peñoles. As with the phase one sales to
Cemex, TEP's sales to the Peñoles entities will occur
under a 20-year power purchase contract. Peñoles is the
world's largest producer of refined silver and Mexico's leading
vertically integrated natural resource company. The 288 million
euro (US$ 239 millions) TEP phase two financing closed on 24
October and was led by ABN-AMRO, Credit Agricole Indosuez and
ANZ. COFACE again provided political risk insurance during the
construction phase and comprehensive insurance during
operations for half of the debt; ECGD of the UK provided
political risk insurance for the remaining commercial bank
debt. The TEP plant is expected to commence operations in mid
2003 (six months after TEG).

The Project's two facilities are integrated through an
innovative sharing of equipment and infrastructure that are
common to both plants. Further efficiencies are expected to
result from optimal coordination and staggering of the
construction schedules.

ALSTOM and SITHE developed the Project jointly and are
50%/50% equity investors in both phases of the Project. ALSTOM
and SITHE have raised over 600 million euros (US$ 500 millions)
of non-recourse, long-term debt to fund Project costs.

In addition to providing reliable, predictably-priced power
to Peñoles and Cemex, the Project advances Mexico's power
sector development in important ways. The plants were sited in
part to enhance grid stabilization and transmission reliability
in Mexico's northeastern region. The Project also provides an
environmentally sound way in which to dispose of petroleum coke
to be produced by the Cadereyta and Madero oil refineries and
thus assists in Mexico's shift to the production of lighter,
more environmentally friendly, petroleum products. And,
finally, by attracting significant private sector investment
the Project preserves public resources for other uses.

ALSTOM will build both power plants on a turnkey basis and
supply the Circulating Fluidised Bed (CFB) boilers. SITHE will
operate the facilities under long-term operations contracts and
provide construction management services for both plants.

ALSTOM is the global specialist in energy and transport
infrastructure. The company serves the energy market through
its activities in the fields of power generation, power
transmission and distribution, power conversion and electrical
contracting and the transport market through its activities in
rail and marine.

Following the full integration of the power generation
activities, ALSTOM today has annual sales in excess of 20
billion euros and employs more than 140,000 people in over 70
countries.

Press relations :

G.Tourvieille / S.Gagneraud (Tel.+33 1 47 55 23 15)

internet.press@chq.alstom.com

Investor relations :

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

investor.relations@chq.alstom.com

Internet :http://www.wcm.alstom.com