Alstom signs 178 million variable speed
pumped-storage hydro contract

The contract with the Kraftwerke Linth-Limmern
AG (KLL), a partner of the Axpo AG, the largest producer of
hydropower and electricity in Switzerland, and the canton of
Glarus, has been booked on the 2nd quarter of the 2009/2010
fiscal year. This contract covers design, engineering,
manufacturing, installation, testing, commissioning and training
services. The equipment to be delivered by 2015 will be installed
in the new Limmern facility being built in the canton of Glarus,
in eastern Switzerland.

This is the second variable speed pumped
storage power plant contract Alstom has signed in Switzerland
this year. In May 2009, the company was awarded a 125
million contract to equip the 628 MW Nant de Drance power station
four 157 MW vertical Francis reversible turbines, four 170 MVA
vertical asynchronous motor/generator units and other equipment,
as well as to handle site delivery, erection, supervision and
commissioning aspects.

Philippe Joubert, President of Alstom Power,
said: Pumped storage can help Europe meet its target of
producing 20% of its electricity from renewable sources by 2020.
This technology allows utilities to store excess energy produced
by intermittent renewable energy sources such as wind and solar
power making it a powerful tool for balancing resources across
the grid.

To date, there are over 127 GW of pumped
storage in operation around the world. Alstom is the
worlds pumped storage market leader having captured in
average 47% of the pumped storage market share per year since
2004. Pumped storage technology is the most efficient and
flexible large-scale power storage technology available and
enables utilities to respond quickly to fluctuating power demand
and to manage demand peaks in a financially and environmentally
attractive way.

When demand for electricity is low, excess
power is used to pump water into a higher reservoir. When demand
for power is high, the water in the higher reservoir is released
through a hydroelectric turbine, generating electricity that can
be sold at premium prices.

A variable speed pump turbine regulates the
level of energy the pump turbine consumes, thus giving utilities
an even better control over their resources to more easily and
efficiently match energy supply to demand. Variable speed also
helps reduce the number of starts and stops and helps to regulate
the network frequency or voltage in pumping mode. These benefits
result in improved profitability for pumped storage plant owners,
and allow network operators to improve the reliability of the
grid as well as the quality of the power supplied to end
consumers.

*Alstom Hydro, a joint venture between Alstom
and Bouygues, has over 400 GW of turbines and generators
installed worldwide, which represent more than 25% of the total
global hydropower installed capacity. As the world leader in
supply of hydropower equipment & services, Alstom Hydro
offers products and turnkey solutions that cover all hydropower
schemes, from large to small, from run-of-river to pumped
storage. With more than 6000 employees in 19 countries Alstom
Hydro offers the broadest range of products and services for new
installations, refurbishment, upgrading and services.

**Conventional pump turbines can only operate
on a fixed quantity of energy whereas variable-speed
pump-turbines can regulate the level of energy they consume. As a
result they continue to function even at lower energy levels.
Consequently they assure a steady refilling of the reservoir
while contributing to the stabilization of the network.

Press Contact

Philippe Kasse, Stéphane Farhi (Corporate) - Tel
+33 1 41 49 29 82 /33 08 

press@chq.alstom.com

Alicia Montoya
(Power) - Tél. +41 (56) 556 33 20

Investor Relations
      

Emmanuelle Châtelain - Tel + 33 1 41 49 37 38 

investor.relations@chq.alstom.com