ALSTOM and Siemens to create a consortium for European high
speed trains

ALSTOM and SIEMENS are prepared to cooperate on the
development and construction of a new cross-border high-speed
train for Europe. Both companies have officially informed
Deutsche Bahn AG (DB AG) and French railways SNCF of this firm
intention. It is the clear response of the two biggest
suppliers of high-speed rail systems in Europe to a joint
initiative launched by the German and French railways with the
backing of their respective governments that focuses on the
building of one high-speed train for the European railway
network. Hartmut Mehdorn and Louis Gallois, the respective
heads of DB AG and SNCF, had announced their vision of placing
a joint order for the next high-speed train generation.

In a joint letter to DB AG and SNCF, ALSTOM and SIEMENS
declare their willingness to form a consortium of equal
partners on a 50/50% basis for this project which would
specify, develop and manufacture a train in close cooperation
with both railway administrations. ALSTOM and SIEMENS have
proposed the creation of a working group composed of
representatives of DB AG, SNCF, ALSTOM and SIEMENS to define
the technical conditions of the new train (in terms of
capacity, operating speed, acceleration capability), the
corresponding commercial conditions (such as lifecycle costs,
investment price per passenger), as well as financial
plans.

ALSTOM and SIEMENS do not rule out that their consortium may
work together on this project with other European companies
after the first phase of definition has been reached.

The two partners will naturally present this project to the
European Commission for approval.

Over the past few decades, ALSTOM and SIEMENS have been
major players in the development of high-speed trains building
respectively, the TGV and the ICE. The two companies have
already worked together on several projects, particularly for a
high-speed train in Asia. Both will tackle the project as a
true European partnership.

About ALSTOM Transport:

ALSTOM is the largest supplier of rolling stock, signaling,
services and railway systems. The Company has been able to
anticipate world trends and offer its customers daring and
innovative solutions at the lowest cost, largely by developing
and applying its unique concept for modularity, which makes the
most of standardisation and customisation. ALSTOM is ready to
meet the growing demand for complete railways systems, rail
freight transportation, services for maintenance and renovation
and innovative financing solutions.

About SIEMENS Transportation Systems:

The SIEMENS Transportation Systems Group is one of the
leading international suppliers to the railways industry. As a
single source and system integrator, the Group combines all the
technical expertise in the fields of signaling and control
systems, traction power supplies, as well as rolling stock for
mass transit, regional and main line services. In the last
fiscal year 1998/99 (30 September), SIEMENS Transportation
Systems generated sales of approx. EUR3 billion (equaling about
DM5.8 billion) with a staff of approx. 14,500.

ALSTOM:

Press enquiries: S. Gagneraud / G. Tourvieille (Tel. +33 1
47 55 25 87

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

SIEMENS Transportation Systems:

Press enquiries: Eberhard Dombek (Tel. +49 9131 7-20238)