ALSTOM placement more than 5 times oversubscribed

9 February, 2001 - ALCATEL SA (Paris Premier Marché:
CGEP, NYSE: ALA), MARCONI PLC (LSE: MONI; NASDAQ: MONI) and
ALSTOM (NYSE: ALS, Paris Premier Marché: ALS) announced
today the successful completion of a placement of 71,077,860
shares in the French industrial group ALSTOM, representing 33%
of ALSTOM's share capital. Alcatel and Marconi are selling an
equal number of shares in the placement. The size of the
offering exceeds the one announced on 25 January, 2001 by 10%.
Total demand represented an oversubscription of more than 5
times.

63,970,074 shares were placed in the international offer and
7,107,786 shares in the French retail offer. In addition, the
selling shareholders have granted the underwriters an option
('greenshoe') to purchase additional shares up to 10% of the
final number of shares offered to cover over-allotments. If the
underwriters exercise the greenshoe option in full, the
offering would increase to 78,185,646 shares (representing
approximately 36% of ALSTOM's share capital), leaving Alcatel
and Marconi each with a residual holding of 5.7% of ALSTOM's
share capital and ALSTOM with a free float around 89%.

The price of the shares offered in the international
offering was determined at 26.25, following a
bookbuilding exercise. Shares in the French retail offer, which
accounted for 10% of the total placement, were priced at
25.60 representing a 2.5% discount to the institutional
offer price.

Commenting on the placement, Pierre Bilger, CEO of ALSTOM,
said, 'We are delighted by the success of this offering and the
strong vote of confidence we have received from the investor
community and from individual shareholders who now exceed
400,000. ALSTOM enters a new phase and we reaffirm our
commitment to delivering profitable growth for the benefit of
all our shareholders'.

Alcatel and Marconi will each receive cash proceeds of
approximately 900 million net of fees and expenses,
before any exercise of the greenshoe option. Alcatel and
Marconi will use the proceeds of the placement for general
corporate purposes.

Credit Suisse First Boston and Société
Générale acted as joint bookrunning lead managers;
Merrill Lynch acted as a joint lead manager.

This communication shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale
of these securities in any country in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state. In
France, the offering is made pursuant to a 'prospectus
définitif' that has received the visa of the Commission
des opérations de bourse, number 01-092 on 8 February
2001. In the United States, a registration statement with
respect to this offering has been declared effective by the
Securities and Exchange Commission. The offering in the United
States is made solely by way of the prospectus contained in the
registration statement.

For further information please contact :

ALCATEL 

Investor Relations

Claire Pedini

+33 1 40 76 13 27

claire.pedini@alcatel.fr

Chris Welton

+331 40 76 50 45

chris.welton@alcatel.fr

Emmanuel Spite

+331 40 76 16 04

emmanuel.spite@alcatel.fr
 Corporate Media Relations

Aurélie Boutin

+331 40 76 11 79

aurelie.boutin@alcatel.fr

Laurent de Segonzac

+331 4076 15 04

laurent.de-segonzac@alcatel.fr 

  

MARCONI

Charlie Foreman

+44 20 7306 1545

charlie.foreman@marconi.com
    

ALSTOM  

Investor relations

Heather Green

+33 1 47 55 25 78

heather.green@chq.alstom.com
 Press Enquiries

Gilles Tourvieille

+33 1 47 55 23 15

gilles.tourvieille@chq.alstom.com
   

SOCIETE GENERALE  

Jean-François Tiné

+33 1 42 13 37 24

jean-francois.tine@ota.fr.socgen.com  

   

CREDIT SUISSE FIRST BOSTON 

Marius Brinkhorst

+ 44 207 888 3859

marius.brinkhorst@csfb.com