Alstom and INTER RAO UES sign Memorandum of Understanding to develop industrial products and services for Russias power market

Press release, 9 December 2010:

Alstom and INTER RAO UES signed a Memorandum of
Understanding (MoU) to develop cooperation in order to jointly provide industrial
products and services for Russias
power industry, including the installation of new instrumentation and control
systems as well as site security systems in projects.

The joint venture will produce small steam turbine
packages for power applications as well as combined heat and power applications
for district steam heating. The partners will also jointly consider cooperation
in the field of integrated services for thermal power plants for INTER RAO UES
installed power generation base. A further agreement will consider INTER RAO
UES entry into the Alstom-Atomenergomash (AAEM)* joint ventures capital.

Cooperation between Alstom and INTER RAO UES will be
extended to include new installations for new and repowered steam plants,
combined cycle applications and their respective equipments (boilers, turbines,
environmental protection systems, and power automation and controls), operating
at supercritical and above steam conditions.

The agreement was signed in Moscow, in the presence of Boris Y.
Kovalchuk, Chairman of the Management Board of INTER RAO UES and Patrick Kron,
Chairman and CEO of Alstom.

Patrick Kron, Chairman and CEO of Alstom, said: This
agreement with INTER RAO UES demonstrates Alstoms firm commitment to support Russia in
securing its energy future through a joint venture to develop locally
manufactured, world-class power equipment and offer integrated power service
solutions.

Boris Y. Kovalchuk, Chairman of the Management Board
of INTER RAO UES, commented: Alstoms power generation technology and service
expertise coupled with INTER RAOs manufacturing capabilities and extensive
installed fleet will bring efficient, reliable and available power for
customers in Russia
and abroad.

Russia and the
CIS countries had a combined installed capacity of 352 GW at the end of 2008. 187
GW is more than 30 years old, 73% of which is coal-fired mostly built between
1960 and 1980. The regions power generation capacity is overwhelmingly
dominated by steam (66%) followed by hydro (20%), nuclear (11%) and gas (3%).

Notes to editors:  

* The AAEM JV created in 2007 between Alstom and
Atomenergomash was Alstoms first step to form a strategic alliance in Russia to
manufacture nuclear turbine islands for Russian power plants, based on Alstoms
ARABELLE^TM
nuclear steam turbine technology. Under todays new MoU, the AAEM
JV agrees to set up a local facility to manufacture ARABELLE^TM steam
turbines. In addition, the factory will also produce large steam turbines for Russias coal
power generation market.  

About Alstom   

Alstom is a global leader in the world of power
generation, power transmission and rail infrastructure and sets the benchmark
for innovative and environmentally friendly technologies. Alstom builds the
fastest train and the highest capacity automated metro in the world, provides
turnkey integrated power plant solutions and associated services for a wide
variety of energy sources, including hydro, nuclear, gas, coal and wind, and it
offers a wide range of solutions for power transmission,
with a focus on smart grids. The Group employs 95,000 people in more than 70
countries, and had sales of over 23 billion in 2009/10 (pro forma figures) 

Alstom Press Contacts: 

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

philippe.kasse@chq.alstom.com; stephane.farhi@chq.alstom.com
 

Jerome Bridon (Alstom Power) Tel +33 1 41 49 88 24 - jerome.bridon@power.alstom.com
 

Investor Relations : 

Emmanuelle
Châtelain, Juliette Langlais (Alstom Investor Relations) - Tél : + 33 1 41 49
37 38 / 21 36

emmanuelle.chatelain@chq.alstom.com, juliette.langlais@chq.alstom.com  

Website: www.alstom.com/power