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

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 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.

Alstom contacts

Press
Philippe Kasse, Stéphane Farhi (Corporate)

Tel +33 1 41 49 29 82 /33 08

philippe.kasse@chq.alstom.com

stephane.farhi@chq.alstom.com

Cécile Dodat (Transport)

Tel +33 1 41 66 91 48

cecile.dodat@transport.alstom.com

Investor relations
Emmanuelle Châtelain - Tel + 33 1 41 49 37 38
investor.relations@chq.alstom.com

Websiteswww.alstom.com,
www.transport.alstom.com