ALSTOM continues its breakthrough in the Shanghai urban
transport market

ALSTOM has just recorded two new successes in the urban
transport market in China: the signature of a contract for the
Shanghai tramway and the signature of a letter of intent for
the signaling system of the city's line 3 metro.

· The contract for the new Shanghai tramway, the Xinmin
line, covers the supply of 152 cars, for a total value of 148
million euros, with an option for a further 148 cars. This
contract has been signed between JIUSHI, a company representing
the Municipality of Shanghai, and SATCO, a joint venture
between ALSTOM (with a 40 % stake) and SEC - Shanghai Electric
Corporation (60 %). ALSTOM's share of this contract is valued
at 109 million euros.

A Memorandum of Understanding signed the same day defines
the supply responsibility between ALSTOM and SATCO. The first
train will be delivered 28 months after the contract comes into
force. The delivery schedule will then be two trains per
month.

After Singapore, Warsaw and Shanghai, this is the fourth
success ALSTOM has recorded with its new range of Metropolis
urban mass transit vehicles, which today has 578 cars either in
production or on order.

· Also in Shanghai, a letter of intent has been signed
between ALSTOM and JIUSHI for the supply of the signaling and
train control system for line 3 of the city's metro, the 'Pearl
Line'. This new signaling system should enter service within
two years.

ALSTOM will supply the new Urbalis system, a complete
integrated solution for signaling and train control. A
significant portion of work relating to the contract will be
carried out in China by CASCO Signal Ltd. (Shanghai), a joint
venture established in 1986 between China Railways Signal &
Communication Corporation and ALSTOM.

The project benefits from a concessionary loan provided by
the French Government.

In May 1999, ALSTOM won a 203 million euro contract to
supply the same line with 28 six-car trainsets.