Orders and Sales for the First Nine Months of fiscal year
2002 Ended 31 December 2001

• Orders and sales up over 8% in
  the three main sectors, Power, T&D and Transport.
• Overall, orders received down 7%
  due to Marine.
• Total sales stable.
• Strong order backlog at
  37 billion, equivalent to 20 months of sales.

 

Unaudited Reported Figures
(comparable figures on page 11)

⁽¹⁾ Contracting was disposed as of 20 July 2001

 

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

'Orders in the first nine months
stabilised at a high level and the full year will reflect a
similar pattern. As a consequence, the order backlog was up at
37bn equivalent to a very healthy 20 months of sales.
While global market conditions remain uncertain, we expect
order intake to be stable next year.

Operating performance has
continued in line with management expectations as detailed in
November. Our continued target is to sustain the first half
margins for the full year and we expect to deliver a
significant improvement in 2003.

Progress continues on GT24/26 gas
turbine recovery, the Renaissance situation and the UK regional
train orders.

Our priority continues to be to
improve the balance sheet through enhancing cashflow,
stabilising debt and then reducing it substantially. The main
actions include focusing on working capital, operational
restructuring, real estate monetisation and a review of our
business portfolio.

We will give an update on our
progress during a strategic presentation which we will hold on
March 14. We intend to give such a presentation every year,
separate from our annual results to improve communication and
transparency.'

 

Orders

During the first nine months of
fiscal year 2002, ALSTOM received orders for a total amount of
18.0 billion versus 19.4 billion for the
first nine months of fiscal year 2001. ALSTOM had an
exceptionally strong Q3 (8.6 billion) last year, due to
large Marine and Power orders.

The main reason for this decrease
of 7% was a lack of orders for Marine, versus three very large
orders last year in Q3, and the disposal of Contracting.
Markets in Power, T&D and Transport have remained healthy.
Power markets are now expected to tighten following the
slowdown in the US.

On a comparable basis, orders were
down 8%.

 

Sales

Sales recorded in the first nine
months of fiscal year 2002 amounted to 17.4 billion
versus 17.7 billion recorded during the same period
last year.

Sales decreased 2% on an as
reported basis, mainly due to the disposal of Contracting.
Power and T&D sales increased, offset by a slight drop in
Transport and a decline in Marine deliveries.

On a comparable basis, sales
remained stable. This was mainly due to a drop in Marine
counterbalanced by increases in all other sectors.

Order backlog was approximately
37 billion (including approximately 5.7 billion
of long-term operation and maintenance contracts) equivalent to
20 months of sales.

 

Currency Effect

Orders and sales have not been
significantly impacted during the first nine months of fiscal
year 2002 by the translation effect between Euro and non-Euro
currencies.

Geographic Breakdown

Orders receiveddecreased in all regions, except
Rest of Europe and South & Central America where there was
strong demand for gas turbines and T&D products. The overall
geographic breakdown was broadly stable.

The percentage breakdown of our
orders received was the following: European Union accounted for
35% of orders received in the first nine months of fiscal year
2002 versus 38% during the same period last year. North America
remained flat at 24% of the total. Asia - Pacific represented
16% and Africa - Middle East 8% of orders received, the same as
last year.

The European Union decreased by
15%, mainly due to Power. North America was down 7% due to
lower orders in Mexico and the Queen Mary II order last year in
Marine, which were offset by substantially higher orders in the
US for Power and Transport. Asia was down 7%, due to a decrease
in Transport. Africa - Middle East decreased by 13% mainly due
to Transport. South & Central America were up 16%, and Rest
of Europe was up 17%.

 

Salesincreased in all regions except the
European Union and North America.

Asia was up 25%, Africa - Middle
East increased by 25% and Central & South America was up
19%. Rest of Europe was up 12%. The European Union decreased by
17% mainly due to Power. North America was down 7% following
fewer deliveries in Marine.

The percentage breakdown of our
sales was the following: European Union accounted for 34% of
sales in the first nine months of fiscal year 2002 versus 40%
during the same period last year. North America remained flat
at 28% of the total. Asia - Pacific represented 19% of sales
versus 15% at the same period last year and Africa - Middle
East 9%, versus 7% at the same period last year.

 

Outlook

Our nine months orders and sales
figures and our secure order backlog prove that our ability to
generate new orders remains robust. Power, our largest single
business, is not significantly exposed to the US gas turbine
market slump and indeed we have several prospects outside the
US for gas turbine orders which should shortly be confirmed. We
expect order level for Power to be stable next year.

T&D has performed above
expectations and, with our new sales organisation, we feel
confident of the future.

Demand for our products in the
transport market remains solid with strong demand in the US and
Europe.

Marine, as anticipated, suffered a
substantial downturn in orders. However, they are fully loaded
until the end of fiscal year 2004 with all orders
reconfirmed.

While global market conditions
remain uncertain, we expect overall order intake to be stable
next year.

 

Comments by Sector

Orders

Power

Orders received during the first
nine months of fiscal year 2002 in Power grew to
9.2 billion, an increase of 7% versus the first
nine months of fiscal year 2001.

Customer service, boilers and
industrial turbines saw significant increases which were offset
by declines in gas turbines, steam power plants and hydro.
Customer service increased mainly due to higher operation and
maintenance bookings, particularly in the US and South American
markets. Boiler and environment had a strong performance,
especially in the CFB utility boilers business in the US.
Industrial turbines increased significantly due to the success
of two new gas turbines Cyclone and GTX100. The decline in the
US gas market is now confirmed but we are not exposed to order
cancellation risks. As a consequence of the US decline, we
expect global market conditions to tighten but we have several
good prospects because of our strong presence in all global
markets.

Steam power plants decreased
following the lack of orders in turnkey projects, partly offset
by the high order intake for direct turbine and generator
orders, mainly in the US. However, since September order
inquiry levels are lower. Hydro registered fewer large orders
in the first nine months of fiscal year 2002 than in the same
period last fiscal year.

By geography, the Americas grew
significantly as a result of a strong increase in orders in the
US and Brazil. The US market benefited from boiler products as
well as customer service activity. Orders in Europe dropped
slightly while Eastern Europe grew due to three large orders in
Poland. Asia-Pacific increased significantly and the Africa -
Middle East remained relatively flat.

In Q3, the main orders received
were:

• One 250MW Circulating Fluidized
  Bed 'CFB' utility boiler in the US
• Camacari: customer service in
  Brazil

During the first half of fiscal
year 2002, Power booked the following major orders:

• Termo Rio Conversion: 6
  GT11combine-cycle gas turbines in Brazil
• Perlis: 3 GT13 combine-cycle gas
  turbines and service contract in Malaysia
• Al Hidd: 3 GT13 combine-cycle
  gas turbines in Bahrain
• Seward: 2 250 MW CFB utility
  boiler for a plant in the US
• Western Power Kwinana: GT13
  combine-cycle gas turbine in Australia

 

Transmission and Distribution
(T&D)

Orders received by T&D
amounted to 2.5 billion, an increase of 11%, versus
orders received during the same period last year.

The new T&D sales organization
has greatly assisted in this growth.

South America grew significantly,
due to both the integration of the transformer manufacturing
facility in Brazil and the high number of Brazilian
transmission projects. North America continued to increase,
representing 17% of T&D orders received. This was mainly
due to a large project in Mexico. In the US, the continuing
growth of the high voltage equipment market offset the reduced
number of large contracts in the Energy Management &
Markets, which was affected by regulatory
re-organisation.

In Asia - Pacific, the Australian
and Chinese markets continued to increase while India suffered
from a lack of orders as compared to last fiscal year.

The African market remained
active, with a strong growth in South Africa and Egypt.

The decreasing activity in Western
Europe was more than offset by increases in the other regions
mentioned above.

In Q3, the main orders received
were :

• 220kV GIS substation in Qatar
  for Enel Power Italy
• 3 power transformers in Brazil
  for Enel Power Italy
• 230 kV switchyard in the US for
  Bechtel

Major orders received in the first
half of fiscal year 2002 included :

• 3 substations (2 extensions: 230
  & 400 kV; one new 400 kV) in Mexico for CFE
• 16 x 220 MVA and 8 x 360 MVA in
  the US for DFD
• High voltage substations in
  Qatar for Kahramaa
• 500 kV substation extension in
  Brazil for Furnas
• Telecom infrastructure in Brazil
  for Acre Rondonia Telecom

 

Transport

Orders received by Transport in
the first nine months of fiscal year 2002 amounted to
4.6 billion, an increase of 9% versus the same
period last year. Total orders received for maintenance and
operation contracts were 1.3 billion.

The growth in orders received was
essentially due to the strong rolling stock and freight market
worldwide as well as to demand for our information systems,
such as the order in Singapore. The higher activity in Europe
was mainly the result of the continued revival of the French
market in rolling stock and freight where we have maintained
our market share. However, the UK market is depressed due to
the regulatory uncertainty. Order intake was also strong in the
Far East and in North America.

Europe continued to be the
dominant market, increasing by 33% versus the first nine months
of fiscal year 2001.

In Q3, the main orders received
were:

• TGV
  ^TM 2N Duplex for SNCF (France)
• 33 new diesel electric locos for
  New Jersey Transit
• 20 shuttles for RENFE
  (Spain)
• 28 trams-trains for city of
  Kassel (Germany)

Major orders received in the first
half of fiscal year 2002 included:

• 300 electrical freight
  locomotives for SNCF (France)
• Regional double decker and
  diesel trains for SNCF
• METROPOLIS cars, signaling
  infrastructure works for Singapore Marina Line metro
• CITADIS
  ^TM tramways in Barcelona (Spain)
• 350 metro propulsion sets for
  New York City (NYCTA)
• Overhaul of 108 metro cars for
  Chicago Transit Authority

Marine

Orders received by Marine in the
first nine months of fiscal year 2002 amounted to
0.2 billion, versus 1.5 billion in the first
nine months of fiscal year 2001. During the first half of fiscal
year 2002, Marine registered the NTCD contract from the French
Navy, which entails the construction of the fore halvesof two new assault ships. No orders
were registered in Q3, while three major orders were recorded
during the same period last fiscal year, including the
exceptional contract for the Queen Mary II.

 

Power Conversion

Orders received amounted to
0.5 billion versus 0.6 billion recorded during
the same period last year. This decrease was mainly due to the
decline in industrial investment which affected Process
Industries, General Drives and Industrial Motors activities,
partly offset by the Naval Marine market. During the first nine
months of fiscal year 2002, two main orders were registered:
the Vega do Sul new Cold mill and Galvanizing Line for Brazil
and the BAE Systems order for 3 ship sets of
integrated power and propulsion systems.

We have plans to integrate Power
Conversion within T&D as of 1st April 2002. There are
synergies in terms of technology, markets and customers plus
overhead cost reductions to exploit through this
re-organisation.

 

Sales

Power

Sales in Power amounted to
9.8 billion in the first nine months of fiscal year
2002, an increase by 9% versus the first nine months of fiscal
year 2001. The main contributors to this increase of were gas
turbines, steam power plants, especially in direct turbine and
generator sales, and customer service. This was offset by
boiler and environment and hydro. Industrial turbines remained
flat.

By geography, North America
continued to represent the main region for Power, dominated by
our service business. Europe remains an important market, while
Asia - Pacific increased significantly following major
deliveries of gas turbines in Malaysia and Thailand.

 

Transmission and Distribution
(T&D)

T&D sales amounted to
2.3 billion in the first nine months of fiscal year
2002, an increase of 12% versus 2.0 billion during the
first nine months of fiscal year 2001.

Sales increase was particularly
strong in North America, due to the important energy management
contracts signed in the US last year, and in the Middle East,
following the execution of contracts in Kuwait and in the
United Arab Emirates.

Europe remained an active market,
especially in Spain, which more than offset the declines in
Germany and the UK.

 

Transport

Sales in Transport amounted to
3.1 billion in the first nine months of fiscal year
2002, an increase of 6% versus 2.9 billion recorded in
the first nine months of fiscal year 2001.

By geography, Europe remained the
most important market, despite the decrease in deliveries,
reflecting the difficulties in UK. The increase in Asia is due
to the Singapore metro contract as well as signaling
contracts.

 

Marine

Sales amounted to 0.8
billion in the first nine months of fiscal year 2002 versus
1.4 billion in the first nine months of fiscal year
2001.

Marine completed and delivered in
the first nine months of fiscal year 2002:

• European Vision, a 750-cabin
  cruise-ship to Festival
• Summit, a 1,000 cabin
  cruise-ship to RCCL/CELEBRITY
• Two high speed ferries to NEL
  Lines in Greece.

Marine also progressed in the
construction of other vessels, with floating of 'Constellation'
(for RCCL), 'European Stars' (for Festival) and two frigates
for Morocco, the 'Mohamed V', to be delivered next quarter, and
the 'Hassan II'.

 

Power Conversion

Sales increased by 12% to
0.5 billion versus the 0.4 billion recorded
during the same period 2001.

This growth reflected the strong
order intake in fiscal year 2001 and was particularly good for
both the Marine & Offshore and Process Industries
activities. In Marine, the principal growth in sales came from
both the Naval segment (electric ship test demonstrator for the
UK and French Navies) and the Merchant segment for electrical
propulsion systems for Cruise Liners and Tankers built in Japan
and the US.

*


* *

Contacts

Press enquiries:

G. Tourvieille


(Tel. +33 1 47 55 23 15)


gilles.tourvieille@chq.alstom.com

Investor relations:

Rob Shaw


(Tel. +33 1 47 55 25 78)


investor.relations@chq.alstom.com

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

*


* *

 

Explanatory Notes

This document explains the
assumptions used to determine comparable figures between
December 2000 and December 2001 for orders and sales.

The following adjustments have
been made to evaluate orders received and sales on a comparable
basis :

• Orders received and sales
  contributed by Power are consolidated 100% from 1 April 2000
  (see note 1).
• Orders received and sales of
  Fiat have been excluded in fiscal years 2001 and 2002; orders
  and sales contributed by activities acquired since 31
  December 2000 have been excluded in first nine months of
  fiscal year 2002 figures (see note 2).
• Orders received and sales of
  Contracting and GTRM have been excluded (see note 3).

1. Power Figures

For the first nine months of
fiscal year 2002, the published figures reflect the 50%
consolidation of ABB ALSTOM POWER from 1 April 2000 10
May 2000 and the 100% consolidation of ALSTOM Power from 11 May
2000 31 December 2001.

Comparable figures have been
calculated to illustrate the estimated effects of the
integration of 100% of Power as if it had occurred on 1 April
2000.

2. Acquisitions

The comparable basis of Transport
figures excluded the impact of the acquisition of 51% of Fiat
Ferroviaria in fiscal year 2001 and 2002:

The table below sets out orders
received and sales contributed to Transmission and Distribution
and Transport by activities acquired since 31 December 2000.
Main acquisitions were Railcare in UK for Transport, Coemsa in
Brazil, RMK in India and Bitronics in the US for
T&D.

3. Contracting and GTRM
disposals

Contracting Sector was sold on 20
July 2001. On a comparable basis, Contracting figures have been
excluded to cancel the impact of the Sector in the first nine
months of fiscal years 2001 and 2002.

 

As our 51% stake in GTRM has been
sold to Carillon at the end of September 2001, GTRM was
excluded on a comparable basis in first nine month of fiscal
years 2001 and 2002.

4. Comparable basis
figures

 

Forward-Looking
Statements

This press release and the First
half of fiscal year 2002 Management Report contain, and other
written or oral reports and communications of ALSTOM may from
time to time contain, forward-looking statements, within the
meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such
statements appear, without limitation, in all of the paragraphs
of the comments of the Chairman and CEO in the press release
and in the sections Orders, Power and Outlook. Examples of such
forward-looking statements include, but are not limited to (i)
projections or expectations of sales, income, operating
margins, dividends, provisions or other financial items or
ratios, (ii) statements of plans, objectives or goals of ALSTOM
or its management, (iii) statements of future product or
economic performance, and (iv) statements of assumptions
underlying such statements. Words such as 'believes,'
'anticipates,' 'expects,' 'intends,' 'aims,' 'plans' and 'will'
and similar expressions are intended to identify
forward-looking statements but are not the exclusive means of
identifying such statements.

By their very nature,
forward-looking statements involve risks and uncertainties that
the forecasts, projections and other forward-looking statements
will not be achieved. Such statements are based on
managements current plans and expectations and are
subject to a number of important factors that could cause
actual results to differ materially from the plans, objectives
and expectations expressed in such forward-looking statements.
These factors include: (i) the inherent difficulty of
forecasting future market conditions, level of infrastructure
spending, GDP growth generally, interest rates and exchange
rates; (ii) the effects of, and changes in, laws, regulations,
governmental policy, taxation or accounting standards or
practices; (iii) the effects of competition in the product
markets and geographic areas in which ALSTOM operates; (iv) the
ability to increase market share, control costs and enhance
cash generation while maintaining high quality products and
services; (v) the timely development of new products and
services; (vi) the inherent technical complexity of many of
ALSTOMs products and technologies and the ability to
resolve effectively and at reasonable cost technical problems
that inevitably arise, including in particular the problems
encountered with the GT24/26 gas turbines; (vii) risks inherent
in large contracts that comprise a substantial portion of
ALSTOMs business; (viii) the effects of acquisitions and
disposals; (ix) the ability to invest in successfully, and
compete at the leading edge of, technology developments across
all of ALSTOMs Sectors; (x) the availability of adequate
cash flow from operations or other sources to achieve
managements objectives or goals; (xi) the inherent
difficulty in estimating future charter or sale prices of any
relevant cruise-ship in any appraisal of the exposure in
respect of the Renaissance matter or the unusual level of
uncertainty at this time regarding the world economy in
general; and (xii) ALSTOMs success at adjusting to and
managing the risks of the foregoing. ALSTOM cautions that the
foregoing list of important factors is not exhaustive; when
relying on forward-looking statements to make decisions with
respect to ALSTOM, investors and others should carefully
consider the foregoing factors and other uncertainties and
events, as well as other factors described in other documents
ALSTOM files from time to time with the Securities and Exchange
Commission, including reports on Form 6-K. Forward-looking
statements speak only as of the date on which they are made,
and ALSTOM undertakes no obligation to update or revise any of
them, whether as a result of new information, future events or
otherwise.