Philippe Mellier presents the new way of working for ALSTOM
Transport

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“
ALSTOM Transport has doubled in size over the past few
years through expansion and acquisition,” said Mr.
Mellier. “
Company processes, roles and responsibilities today need to
be simplified and focused so that we can manage our business as
one single entity.”

Mr. Mellier’s presentation was made to 500 top managers
face-to-face and to 700 managers in 40 countries by webcast.

“
The recently agreed financial package to save ALSTOM gives
us the foundation to deliver the results needed to build our
future,” he explained. “
This means that everyone in ALSTOM Transport must quickly
adopt the new standards for the way we work together with all
our customers and suppliers throughout the world.”

The new organization will be based on four newly created,
customer-focused regional businesses (Northern Europe, Southern
Europe, the Americas and Asia-Pacific). They will be
responsible for all customer contacts, including business
development, tendering and project execution and thus will be
responsible for the profit and loss of the Sector. They will be
supported by a single operations group that will manage all
ALSTOM Transport factories and engineering centers around the
world to design, produce and deliver trains, train systems and
services “
according to the contract signed with each
customer” – a phrase that Mr. Mellier hammered
home time and time again throughout the two-hour presentation.

He added: “
To meet our customers’ actual needs and expectations
– as well as our own profit targets – we will make
sure that the specifications we agree at contract time are both
comprehensive and stable, so that we can then focus all our
efforts on delivery according to the contract terms. Customer
relations is key to ALSTOM Transport’s new way of
working; we need to be closer to our customers, and our new
organization will facilitate that.“

The presentation was followed by a press conference in the
ALSTOM Transport headquarters in St. Ouen, where Mr. Mellier
also announced that more than €550 million of new
business – orders and announcements of new orders to come
– came in over the last few weeks. “
This is a very encouraging sign that, with the new
financial package, customers are reassured about our financials
and our future, so we can resume normal commercial
relationships and close the period of uncertainty, which was
very detrimental for us,” Philippe Mellier
concluded.

Editor’s notes

Philippe Mellier became ALSTOM’s Transport Sector
President on May 1, 2003. Born in 1955, he was Chairman and
Chief Executive Officer of Renault Trucks from 2000-2003,
having joined the company in 1999 as a Senior Vice President
for marketing in Europe. Prior to his career at Renault, he
worked for the Ford Motor Company, having held senior
management positions with responsibility for several
countries.

ALSTOM Transport's Executive Committee now comprises:

With more than 35 product lines and a presence in more than
60 countries, ALSTOM's Transport sector offers a complete range
of products and services for new rolling stock, signaling, and
electrical and mechanical infrastructure as well as maintenance
and rehabilitation services to four distinct types of
customers: urban transit authorities and operators; intercity
passenger rail operators and rolling stock owners; rail freight
operators; and intercity railway infrastructure owners.
ALSTOM's Transport sector, with sales of €5.1 billion in
financial year 2002-2003, is among the world's leading
suppliers to the railway industry.

Contacts:
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helen.connolly@transport.alstom.com

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Emmanuelle Chatelain

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investor.relations@chq.alstom.com