Schneider Electric and Alstom are pleased to enter into
exclusive negotiation with Areva for the acquisition of Areva
T&D

Schneider Electric and Alstom are satisfied
with the decision of Areva to retain their offer for exclusive
negotiations. The aim of these negotiations is to finalise the
disposal agreement which should ultimately need the approval of
the Commission de la Participation et des Transferts, the view of
employee representatives and the agreement of the competition
authorities. The two partners restate that they propose a project
which maximises the value of the company and creates a coherent
framework to develop Areva T&Ds activities, supported
by strong commitments to Areva T&Ds employees.

A project which places T & D at the core of the
strategy of the two groups and creates two global specialists
in the upstream and downstream sectors of the electricity
market

The proposed integration of Areva
T&Ds activities, currently number three worldwide,
with Transmission moving to Alstom (around two thirds of the
business) and Distribution to Schneider Electric (about one
third), would transform Schneider Electric and Alstom into two of
this markets global leaders with

• an upstream pole, with power generation
  provided by Alstom (turnkey power plants, turbines and
  generators), completed by transmission (very high and high
  voltage) transferred from Areva T&D to Alstom;
• a downstream pole, with power
  distribution (medium and low voltage) provided by Schneider
  Electric, bolstered by the medium voltage activities of Areva
  T&D.

Alstom and Schneider Electric are opening up
possibilities for industrial, commercial and technological
synergies which, up until now, have not been available to Areva
T&D: the link with power generation, the acquisition of
critical size in the medium voltage market, access to wider
markets and innovation for the entire electricity market.

Alstom and Schneider Electric will preserve
and develop the links between transmission and distribution in
all areas: commercial, through cross-purchasing agreements,
technological, via the adoption of identical standards (hardware
and software) and on innovation through an ambitious common
R&D programme on the Smart Grid concept.

Alstom and Schneider Electric will
considerably extend the capabilities of Areva T&D in turnkey
projects (currently 1.6 billion just for transmission and
distribution) to more than 8 billion for the complete
electricity market with the addition of the capabilities of
Alstom and Schneider Electric.

A project which guarantees a professional future for
each Areva T&D employee

Alstom and Schneider Electric have undertaken
strong commitments towards Areva T&Ds employees to
guarantee their professional future and offer them the best
opportunities to develop their skills in the long term.

Areva T&Ds employees share
experience, know-how and an industrial and commercial culture
with employees from Schneider Electric and Alstom which would
facilitate their integration. The two partners do not foresee any
restructuring linked to the acquisition and are committed to
ensuring a professional future for each and every employee.

Furthermore, in Europe and up until the
beginning of 2013, there will be no site closures with the
exception of the social plans which would have been communicated
to employees before the sales agreement date, there will be no
mass redundancy plan other than a voluntary one, except if there
is a significant downturn in the general economic conditions.
Alstom and Schneider Electric have also committed themselves to
propose to all the employees in Europe an equivalent post in the
same geographical area while maintaining their grade, seniority
and remuneration.

Within Alstom, the employees of Areva
Transmission will form a third sector, alongside Power and
Transport. With the total support of the Group on the financial,
human resources and technological aspects, they will be
responsible for leading an ambitious growth strategy, enabling
them to acquire or increase their leading positions in each of
their activities.

By consolidating its very complementary medium
voltage teams, Schneider Electric will create a new business unit
called Energy, with sales of 4.6 billion for
22,000 employees.

Working closely with the management of Areva
T&D, the two partners intend leading a rapid integration
which respects the needs of the teams.

A project which maximises the value of Areva
T&D

Alstom and Schneider Electric have submitted a
bid which maximises the value of Areva T&D. They propose
jointly acquiring Areva T&D for an equity value of
2,290 million. On 30 June 2009, the net debt of Areva
T&D was around 1,050 million.

After the closing of the transaction,
Schneider Electric and Alstom plan to acquire the shares of Areva
T&D via a joint legal vehicle, from which the activities will
then be progressively transferred to Schneider Electric and
Alstom.

*

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Press Contact Alstom

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

press@chq.alstom.com

Investor Relations
Alstom     

Emmanuelle Châtelain - Tél + 33 1 41 49 37 38

investor.relations@chq.alstom.com

Press Contact Schneider Electric

Véronique Roquet-Montégon

veronique.roquet-montegon@schneider-electric.com
Tél. : +33 (0)1 41 29 70 76

Investor Relations Schneider Electric
Carina Ho

Tél. : +33 (0) 1 41 29 83 29

Fax : +33 (0) 1 41 29 71 42

ISIN : FR0000121972

Press Contact DGM

Michel CalzaroniOlivier Labesse

Tel. : +33 (0)1 40 70 11 89

Fax : +33 (0)1 40 70 90 46