Man acquires ALSTOM's diesel engine operations

Engineering companies ALSTOM of France and MAN of Germany
have agreed terms for the acquisition by MAN of ALSTOM's Diesel
engines business. Through this acquisition, the MAN Group will
strengthen its activities in the field of large Diesel engines.
With economic effect as of 31 March 2000, MAN B&W Diesel
AG, Augsburg, will take over ALSTOM Engines Ltd. of the UK with
its brands Ruston, Paxman and Mirrlees Blackstone. ALSTOM
Engines Ltd. supplies on a worldwide scale medium and high
speed Diesel and gas-fuelled engines with outputs ranging from
500 kW to 15.000 kW, which are primarily incorporated into fast
ferries, navy and coast guard ships, luxury yachts,
locomotives, power stations and packaged generator sets. ALSTOM
Engines Ltd. employs some 1500 persons, has an annual business
volume of some 200 million and its business is
profitable.

For MAN this move represents a diversification in profitable
and growing markets for high speed engines as well as valuable
extension of its presence in the market for medium speed
engines. In terms of output the ALSTOM range is situated above
the upper end of the engine lines supplied by MAN Nutzfahrzeuge
AG. The takeover is expected to yield synergies in
technological development, engine programmes and worldwide
distribution in all areas of application. The Ruston, Paxman
and Mirrlees Blackstone brands have developed excellent
reputations in their respective markets and are complementary
to the MAN and MAN B&W brands. The plan is to maintain the
acquired business within the MAN family and to strengthen their
technical and brand identities, bringing a wider range of
products to a wider range of markets and place more resources
at the disposal of customers.

For ALSTOM the proposed deal is in line with the decision
announced a year ago to divest its non-core industrial
businesses, representing about 850 million of sales by
April 2000. The announcement of this sale is another step
closer to the completion of this divestment process.

The acquisition is subject to the approval of MAN's
Supervisory Board and of the relevant regulatory authorities.
It is anticipated that the transaction will be completed in May
2000. Consultation with employees of ALSTOM Engines Ltd. and
with key customers will commence immediately.