Orders and Sales for the first nine months ended 31
december 1999

• Overall an
  exceptional strong performance for First Nine
  Months
• Order intake
  up 22% (+8% excluding Energy)
• Strong sales
  growth, up 16% (+7% excluding Energy)
• Order book
  reached23 billion
  (including Energy)

Commenting on
the First Nine Months Orders and Sales,
announced this evening, Pierre Bilger, Chairman and
Chief Executive Officer of ALSTOM stated:

"We are
reporting today a very strong performance in terms of
overall orders and sales for the First Nine Months
99/00 with significant growth in Energy, Transport and
Marine more than off-setting the exceptionally low
level of activity registered by Transmission &
Distribution, particularly in the 3
^rd Quarter.

For the full
year 1999/00, including Energy, we expect to record an
overall strengthening of orders and sales, primarily
due to the consolidation of ABB ALSTOM POWER.

For
ALSTOMs wholly-owned businesses, we expect a
slight decrease in the level of order intake compared
to the very high level reported for full year 1998/99.
This will result from an anticipated absence of new
cruise ship orders before the end of the period and the
mechanical effect of excluding disposed industrial
businesses, which will not be fully off-set by the
expected improvement in Transmission & Distribution
in the 4
^th Quarter."

Orders and Sales

During the First
Nine Months 1999/00, ALSTOM received orders amounting
to13 086
million, an increase of 22% compared to the same period
last year. Excluding Energy, orders have increased by
8%.

Order growth
was particularly marked in the Americas, and orders
more than doubled in North America where major orders
were received in Energy, Transport and Marine and where
local T&D businesses have recorded good progress in
domestic markets.

The strong
increase in order intake in Asia-Pacific was driven
mainly by major Energy orders in China (Wai Gao Xiao :
2 x 900 MW advanced supercritical boilers) and Malaysia
(Manjung: 3 x 660 MW coal-fired power plant) as well as
the inclusion of the order for Shanghai Metro Line
3.

Orders in
Europe, ALSTOMs domestic market remain stable
compared to the same period last year.

Sales in the
First Nine Months 1999/00 amounted to11 862 million,
an increase of 16% compared to the same period last year.
Excluding Energy, sales increased by 7%.

Breakdown by Sector

Energy

The significant
increases in Energy orders and sales primarily reflects
the consolidation of ABB ALSTOM POWER since 1 July
1999.

Major orders
received by ABB ALSTOM POWER during its first 6-months
of operations include five gas-fired combined cycle
power plants for the merchant power plant market in
USA, 2 x 250 MW circulating fluidised bed boilers for
Guayama co-generation plant in Puerto Rico, 800 MW
combined cycle power plant in San Roque (Spain), 140 MW
combined cycle power plant and 8-year maintenance
agreement in Gaza (Palestine) and a major turnkey
retrofit order for the Turow power plant in
Poland.

Transmission & Distribution

Transmission
& Distribution continues to be impacted by difficult
market conditions leading to a 14% decrease in orders
received and a 7% decrease in sales compared to the First
Nine Months 98/99. Orders received during the 3
^rd Quarter, at474 million were
exceptionally low.

The decrease in
orders is primarily affecting the systems and
transmission businesses whilst the distribution
business has experienced increased activity, recording
double digit growth during the period.

The downward
trend in transmission is the combined result of the
continuing low level of investment in Asia as well as
lower levels of investment in Europe, particularly in
UK and more recently in Germany, where markets are
currently impacted by the on-set of
deregulation.

In North
America, by contrast, a combination of favourable
market conditions associated with the increased number
of on-going power generation projects and
ALSTOMs increased commercial focus, has led to a
44% increase in orders in this region compared to the
same period last year.

The 7% decrease
in sales is the mechanical effect of the low order
intake of the past period.

Transport

Transport
recorded sustained high levels of orders (+7%) and
sales (+18%) during the Nine Months to December
1999.

Major orders
received in the 3
^rd Quarter include 210 double deck cars for
Belgian railways (SNCB), 22 regional trainsets for
French railways SNCF as well as confirmation from SNCF
of previously awarded options for 99 diesel railcars.
In addition, the contracts for Shanghai Metro Line 3
and Caracas Metro Line 4 have been included in the
order book during the 3
^rd Quarter.

Orders won but
not yet registered in the order book include 100
locomotives for Iran and 130 commuter cars for New
Jersey, USA. In addition, the order book does not
include long-term service contracts, which currently
represent approximately a further 3.8 billion of
firm future revenues.

Industry

Industry
reported decreases of 20% in orders and 23% in sales
during the period. On a comparable basis, excluding the
mechanical effect of the transfer of the Industrial
Systems and Services business and a number of Overseas
subsidiaries from Industry to Contracting which took
place on 1 July 1999, orders increased by 1% and sales
decreased by 5%. Major orders received during the 3
^rd Quarter include coal and ash handling
systems for Tianjin Port (Phase 2 - China) and Manjung
Power Plant (Malaysia).

Further progress
in the refocusing of the Industry Sector was made during
the 3
^rd Quarter with the sale of the
French-based automated assembly activity. This brings the
total of businesses sold or for which sales agreements
have been signed to more than400 million of
sales since the launch of the disposals
programme.

Marine

Orders received
in Marine increased by 77% compared to the First Nine
Months 98/99. Order intake in the 3
^rd Quarter alone reached an exceptional level
of over850 million and
includes two 1000-cabin cruise ships for P&O and 2
fast ferries for Greek operator, Nel Lines. No major new
cruise ship orders are expected during the 4
^th Quarter as compared to over1.3 billion of
orders recorded in the 4
^th Quarter of last year.

At 31 December
1999, Marines order book contained 13 cruise
ships for delivery before 2003/04.

Sales increased
by 67% as a result of the successful delivery of three
complete cruise ships, two for Renaissance and one for
Festival as well as part-completion of the Millenium
cruise ship for RCCL and a further cruise ship for
Renaissance.

Contracting

The 28% and 16%
increases in orders and sales respectively includes the
effect of the transfer of the Industrial Systems and
Services business and Overseas subsidiaries from
Industry to Contracting during the period.

Excluding these
transferred businesses, orders received increased by 7%
as a result of the continuing economic improvement in
Western Europe leading, in particular, to increased
activity in France and the Benelux countries. Sales
decreased by 3% as a result of the mechanical
accounting effect of a change in timing of recognition
of sales, related to the change in fiscal year for this
ex-Cegelec business, already observed in First Quarter
99/00 figures.

Notes to Table

• First Nine
  Months 1998/99 restated to include the split of
  former Cegelec businesses.

• Three
  perimeter changes have affected Industry figures for
  the First Nine Months

• Orders and
  sales in respect of businesses disposed of during the
  First Nine Months have not been included. These
  businesses include Painting Systems, Nuclear Valves
  (Velan) and Automated Assembly activities. Overall
  during the First Nine Months 1998/99, these businesses
  had recorded approximately150 million of
  orders and180 million of
  sales

• A number of
  activities have been transferred from Industry to
  Contracting as of 1 April 1999. These activities which
  include mainly Industrial Systems and Services
  contributed approximately280 million of
  orders and250 million of
  sales during the First Nine Months 1999/00

• In October 99,
  ALSTOM acquired the remaining 50% of its subsidiary in
  South Africa from Reunert; This subsidiary has been
  fully consolidated within the Industry Sector from 1
  April 1999 when control effectively passed to ALSTOM.
  During the First Nine Months 1999/00, ALSTOM South
  Africa contributed130 million in
  orders and135 million in
  sales.

• Others
  represents orders received or sales made by ALSTOM
  Network

• Energy
  figures include for the period 1 April 30
  June 1999, 100% of ALSTOMs Energy Sector,
  still including the heavy duty gas turbine business
  sold to General Electric on 25 June and the remaining
  businesses contributed to the new joint company, ABB
  ALSTOM POWER on 30 June 1999, and for the period 1
  July 31 December, 50% of ABB ALSTOM
  POWER.

Attachments
:

• ALSTOM
  Quarterly Orders and Sales figures 1999/00 by
  Sector

• ALSTOM First
  Nine Months Orders and Sales by Geographic
  Zone

Press
enquiries:

G. Tourvieille
/ S. Gagneraud (Tel. +33 1 47 55 22 71)

gilles.tourvieille@chq.alstom.com/severine.gagneraud@chq.alstom.com

Investor
relations:

H. Green (Tel.
+33 1 47 55 25 78)

investor.relations@chq.alstom.com

Internet :
http://www.wcm.alstom.com

*

* *

"Safe
Harbor" statement under the United States Private
Securities Litigation Reform Act of 1995 :

"This
Press Release contains "forward looking statements" as
that term is defined in the United States Private
Securities Litigation Reform Act of 1995 including those
statements directly quoting ALSTOMs Chairman and
Chief Executive Officer and others elsewhere relating to
the Companys expected future performance.These
"forward looking statements" are based on the
Companys current expectations and assumptions.
However such statements are subject to certain known and
unknown risks and uncertainties and actual results may
differ materially from those anticipated in the forward
looking statements. These include, in most cases, with
respect to both ALSTOM and ABB ALSTOM POWER, without
limitation the inherent difficulty of forecasting future
market conditions, costs and/or cost savings at certain
times and/or in certain markets, timing of completion of
the strategic repositioning in the field of Industry and
the risks and other uncertainties listed from time to
time in ALSTOM's public filings, including but not
limited to the "Risk Factors" which impact the Company
and ABB ALSTOM POWER business or operations contained in
ALSTOM's Prospectus dated June 22, 1998 filed with the
French COB and the United States Securities and Exchange
Commission in connection with ALSTOM's initial offering
."