ALSTOM's capital increases results

On 13 July 2004, ALSTOM launched two concurrent capital
increases:

- one with preferential subscription rights, with
3,655,265,768 shares available for subscription for cash or by
debt for equity set-off;

- the second, a debt for equity swap, reserved for certain
ALSTOM creditors.

The capital increase with preferential subscription rights
was oversubscribed : total subscription requests amounted to
approximately 115% of shares.

- 3,320,066,218 shares were subscribed to on an irreducible
basis, of which 3,107,677,120 shares were subscribed for cash
and 212,389,098 shares by debt for equity set-off.

- 872,760,689 shares were subscribed to, on a reducible basis
and by allocation of shares remaining following the exercise of
subscription rights, of which 85,149,787 shares were subscribed
for cash and 787,610,902 shares by debt for equity set-off. All
shareholders were fully served. CFDI, a French State-owned
entity and an ALSTOM creditor in an amount of 300 million euros
had intended to subscribe 600,000,000 shares through debt for
equity set-off.  However, due to the success of the
transaction, CFDI could not be fully served and will receive an
allocation of only 62,438,861 shares, that is 10.4% of the
number requested.

This capital increase with preferential subscription rights
totals 1,508,350,193 euros, of which 1,277,130,762 euros in
cash and 231,219,430 euros through debt for equity set-off.

The second capital increase was reserved for ALSTOM
creditors which were offered the opportunity to swap their debt
into equity at a price of 0.50 euro per share.

Approximately 38% of the capital increase was subscribed,
with 480,000,000 shares having been subscribed out of
1,275,787,385 shares, for an amount of 240,000,000 euros by
debt for equity swap.

The overall amount of these two concurrent capital increases
comes to 1,748,350,193 euros.  Following payment and
delivery of the shares on 13 August 2004, ALSTOMs share
capital will be made up of 5,440,717,829 shares. The French
State, including CFDI, will now hold 1,162,049,763 shares,
which amounts to 21.4% of the capital. The number of ORAs
(bonds mandatorily reimbursable with shares) in circulation is
99,936,967.

ALSTOMs new shares will be issued tomorrow, 13 August
2004, and will start trading on Euronext on the same day
under the same ticker symbol as the existing shares.

If these transactions had been finalised at 31 March 2004,
ALSTOM's share capital would then have amounted to 2,146
million euros and its economic debt would have been 1,651
million euros, i.e. a debt to equity ratio of 77%. See the
attached annex for a pro forma description of the impact of the
capital increases and the debt for equity set-offs on
ALSTOMs capitalisation, debt and repayment schedule.

*    *    *

This announcement does not constitute an offer of ALSTOM
securities for sale or subscription, or a solicitation of
offers to purchase or subscribe for securities, in the United
States or any other jurisdiction.  Securities may not be
sold or subscribed in the United States absent registration or
an exemption from registration. The securities referred to
herein have not been, and will not be, registered under the
Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable
exemption from registration requirements.  This notice is
issued pursuant to Rule 135c of the Securities Act of 1933.

FSA/Stabilisation

Press Information:

S. Gagneraud

Tel : +33 1 47 55 25 87

internet.press@chq.alstom.com 

Investor Relations:

E. Châtelain

Tel : +33 1 47 55 25 33

investor.relations@chq.alstom.com 

M: Communications :

M. Forrest

Tel : +44 20 7153 1531

forrest@mcomgroup.com

Please see attached file for full press release.

• Closing cap increase Eng,1.pdf