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Alstom Transport and Russian rolling stock manufacturer
Transmashholding agree on strategic partnership

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Alstom Transport and the Russian firm TMH, the
major supplier to Russias rail transport operator, RZD
(Russian Railways), have signed a memorandum of understanding to
establish a strategic partnership. This memorandum provides for
technical cooperation between the two firms and the possibility
for Alstom Transport, subject to a due diligence audit and a
final agreement between the parties, to buy a 25% plus one share
in TMH equity.

In addition, Alstom Transport and TMH have
decided to create a joint venture in the area of double-deck
coaches. TMH will hold a 51% stake in the new firm, known as
TMH-Alstom DV, with Alstom Transport holding a 49%
stake. The company has been created for the purpose of responding
in October 2008 to a call for tenders launched by Russian
Railways (RZD) to manufacture 1,210 double-deck passenger cars.
Having pre-qualified in May 2008 to take part in this call for
tenders, Alstom Transport was chosen by TMH as its technological
partner in proposing a modern, innovative solution to RZD.

The rolling stock designed by TMH-Alstom DV
has never before been manufactured in Russia. It consists of
double-deck hotel cars equipped with every
conveniencecouchettes, restaurant, showersfor
passenger travel over sometimes very long distances. If
TMH-Alstom DV wins the contract, these trains will most likely be
manufactured in Russia's Tver region, northwest of Moscow, and
would connect the cities of Saint Petersburg, Moscow and Sochi at
speed of up to 160 km/hr.

In the future, Alstom Transport and TMH are
planning to create a joint platform for the manufacture of
freight and passenger locomotives. This platform will be adapted
to Russian railway standards and will draw on expertise within
both Alstom and TMH in the design and manufacture of locomotives.
Russia has a potential market of 1,000 locomotives annually
between now and 2030.

About Alstom Transport

With the focus on sustainable transport, Alstom
Transport develops and offers the most complete range of systems,
equipment and services on the rail market. Alstom Transport is
capable of offering turnkey solutions for an entire transport
system, from rolling stock to signalling and infrastructure.
Alstom Transport is present in over 60 countries and has a
workforce of 26,000. During the 2007-2008 financial year, Alstom
Transport recorded sales of 5.5 billion and a 39% increase
in orders compared with the previous year.

Alstom Transport has had a presence in Russias railway
market since September 2007, when it signed a contract with
Karelian Trains (a joint venture between RZD and VR of Finland)
to supply Pendolino high-speed tilting trains that will operate
between Saint Petersburg and Helsinki beginning in 2010.

About Transmashholding
Transmashholding is Russia's largest manufacturer of rolling
stock. The company manufactures electric and diesel locomotives,
converters, freight cars, passenger coaches, EMU, DMU and metro
cars, diesel engines for locomotives and diesel generators. In
2007, TMH posted turnover of 1,9 billion. The company
employs a workforce of 65.000.

Russias railway market is Europe's largest, with over
85,000 kilometres of track, 1.3 billion passengers annually and
annual freight totalling 1.3 billion tonnes.

Press contact
Philippe Kasse, Stéphane
Farhi (Corporate)                        

Tel +33 1 41 49 29 82 /33 08 

Cécile Dodat (Transport)

Tel + 33 1 41 66 91 48

Investor Relations     

Emmanuelle Châtelain

Tel + 33 1 41 49 37 38 

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