Market statement

ALSTOM today announced that it has experienced further
technical difficulties in the introduction of new heavy duty
gas turbine technology.

The first 'B' rating versions of the Company's GT24/26 gas
turbines are currently being introduced to service. In the past
months, technical issues have arisen which are not unusual in
the commissioning of new high-tech complex products of this
type, and for which modifications have been identified and are
being implemented. Recent inspections have revealed a further
localised deficiency, which will require component modification
on all 'B' rating machines. The first modified machines will
re-start in August 2000. As a result, some GT24B and GT26B
projects will experience some start-up and commercial operation
delays. ALSTOM is working with each customer to manage their
specific issues.

The impact of these issues may involve material additional
costs. Any such costs will be included in the purchase
accounting treatment of the acquisition of ABB ALSTOM Power,
which will be reported in the 30 September 2000 interim
accounts. On this basis, the Company does not believe that
these issues will affect significantly the operating margin
target of 6% for 2002/03 previously disclosed.

Press enquiries:

S. Gagneraud

(Tel. +33 1 47 55 25 87)

severine.gagneraud@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

Forward looking statements

This press release contains, and other written or oral reports
and communications of ALSTOM may from time to time contain,
forward-looking statements, within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such statements appear, without
limitation, in the second and final paragraphs. Examples of
such forward-looking statements include, but are not limited to
(i) projections or expectations of sales, income, operating
margins, dividends or other financial items or ratios, (ii)
statements of plans, objectives or goals of the Company or its
management, (iii) statements of future product or economic
performance and (iv) statements of assumptions underlying such
statements. Words such as 'believes,' 'anticipates,' 'expects,'
'intends,' 'aims,' 'plans' and 'will' and similar expressions
are intended to identify forward-looking statements but are not
the exclusive means of identifying such statements.

By their very nature, forward-looking statements involve
inherent risks and uncertainties that the forecasts,
projections and other forward-looking statements will not be
achieved. Such statements are based on management's current
plans and expectations and are subject to a number of important
factors that could cause actual results to differ materially
from the plans, objectives and expectations expressed in such
forward-looking statements. These factors include: (i) the
inherent difficulty of forecasting future market conditions,
interest rates and exchange rates; (ii) the effects of, and
changes in, laws, regulations, governmental policy, taxation or
accounting standards or practices; (iii) the effects of
competition in the product markets and geographic areas in
which ALSTOM operates; (iv) the ability to increase market
share, control costs and enhance cash generation while
maintaining high quality products and services; (v) the timely
development of new products and services; (vi) the inherent
technical complexity of many of the Company's products and the
ability to resolve effectively and at reasonable cost technical
problems that inevitably arise; (vii) risks inherent in large
contracts that comprise a substantial portion of the Company's
business; (viii) the effects of acquisitions and disposals;
(ix) the ability to invest in successfully, and compete at the
leading edge of, technology developments across all of the
Company's Sectors; (x) the availability of adequate cash flow
to achieve management's objectives or goals; and (xi) ALSTOM's
success at adjusting to and managing the risks of the
foregoing. ALSTOM cautions that the foregoing list of important
factors is not exhaustive; when relying on forward-looking
statements to make decisions with respect to the Company,
investors and others should carefully consider the foregoing
factors and other uncertainties and events, as well as other
factors described in other documents ALSTOM files from time to
time with the Securities and Exchange Commission, including
reports on Form 6-K. Such forward-looking statements speak only
as of the date on which they are made, and ALSTOM undertakes no
obligation to update or revise any of them, whether as a result
of new information, future events or otherwise.