ALSTOM awarded business worth one billion euros by Chinese railways

The Ministry of Railways of the Peoples Republic of
China has announced that ALSTOM has been chosen for the supply
of regional trains and locomotives.

The contract specifies that 60 regional trains are to be
supplied and built in China by ALSTOM working in partnership
with the Changchun Railway Company.

This business is expected to be worth over 620 million euros
for ALSTOM including a technology transfer enabling 51 of the
trains to be built locally. ALSTOM will supply 3 complete
trainsets, 6 trainsets in kits, and equipment for the remaining
51 trainsets, from its sites in Savigliano, Italy, and La
Rochelle in France.

The trainsets will be composed of 8 cars each and based on
ALSTOMs PENDOLINO technology for the carbody, but will
not use a tilting system. Entering commercial service in 2007,
they will run at a speed of 200km/h on various regional
lines.

They represent ALSTOMs latest EMU (Electrical
Multiple Units) technology and are true high performance
products that gained an excellent international reputation
through numerous worldwide references.

180 high-power double locomotives are also to be supplied
and built in China by ALSTOM working in partnership with the
Datong Electric Locomotive Company.

ALSTOMs share of this business will account for
around 380 million euros and covers the supply of the first 12
locomotives and a technology transfer to enable the remaining
168 to be built locally.

The double electric locomotives are derived from
ALSTOMs successful PRIMA range and will be used
primarily for heavy freight duties on the Datong-Qinhuangdao
line.

ALSTOMs site in Belfort will provide the first
locomotives in the order and the relevant technology transfer,
other French sites - Ornans, Tarbes and Le Creusot - as well as
Charleroi in Belgium will participate in the supply of bogie
and traction elements.

Patrick Kron, Chairman and Chief Executive Officer of ALSTOM
said: 'These announcements are very encouraging for ALSTOM and
confirm our strong belief that we have both experience and
know-how in technology and project management to serve rail
transport needs in China with our local partners. We have
created a strong technological and industrial platform that
enables us to participate in the future high-speed lines
projects'.

ALSTOMs Transport sector has a long-standing
commitment to serving Chinese national and urban rail transport
markets, dating back to the 1950s when starting to supply
diesel and electric locomotives to China. Today the Group has
established several joint ventures and partnership agreements
such as in Shanghai with Satco for the production of mass
transit vehicles, Satee for propulsion equipment and Casco for
signalling equipment; and in Qingdao with Qingdao Railway
Equipment company for the supply of dampers.

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Tel. +33 (0)1 41 49 27 40

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investor.relations@chq.alstom.com