Orders and Sales for the First Quarter of fiscal year 02/03
Ended 30 June 2002

• Orders received up 11% on a comparable
  basis.
• Sales down 2% on a comparable basis
• Backlog at  35 billion representing 19
  months of sales.

Unaudited Reported Figures

^{(1)Including Power Conversion}

^{(2)Including Contracting and GTRM}

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

'The
good level of orders in the first quarter of fiscal year 02/03
compared to the same period last year and to the previous
quarter is encouraging. It confirms our customers confidence in
our products and we believe that ALSTOM is resisting well to
the current, challenging, economic environment.

Also,
during the quarter ending 30 June 2002 we met the first
significant milestone of the
RestoreValue plan, the rights issue, which was successfully
concluded despite difficult stock market conditions.

We
maintain our efforts and continue to focus on free cash flow
and improvement in operating margins in order to meet our
objectives.'

 

 Overview

Orders received for the
first quarter of fiscal year 02/03 amounted to 
5,675 million, an increase of 11 % on a comparable basis
versus the same period of last fiscal year. On a reported
basis, the decline of 9% is due to the disposal of GTRM and
Contracting. Versus the previous quarter, the last quarter of
fiscal year 01/02, orders were up 22%.

Most
geographical regions improved except the US, principally due to
lower Power orders (see page 6).

Sales amount
to  5,269 million, down 2% on a comparable basis
mainly due to a decline of revenues in the Gas activities in
Power.

Currency Effect - During
the first quarter of fiscal year 02/03, orders received were
impacted by translation effects between Euro and non-Euro
currencies. The impact is -3.5% on orders received and -3.8%
on sales. These translations of foreign currencies versus
Euro are due to a fall in value of currencies versus the Euro
in June 2002 (USD by 8.5% and GBP by 4.4% versus June
2001).

The Rights issue launched
on May 28
^th was the first step in the implementation of the
Restore Value plan whose aim is to enhance the balance sheet
by generating cash proceeds of around 2.1bn by March
2003 and achieve a gearing of 20% by March 2005. The capital
increase of  636 million was fully subscribed,
despite particularly challenging market conditions.

 

Comments by Sector

Power

In
Power, during the first quarter of fiscal year 02/03, orders
received grew to  2,879 million, an increase
of 53 % versus the previous quarter and an increase of 11%
versus the first quarter of fiscal year 01/02. This encouraging
performance was achieved despite a general slowdown in new
equipment investment in the US.

In Q1,
the main orders received were:

• Turnkey contract with Gaz de France of a total value
  of approximately 450 million for the supply of a 800
  MW gas fired power plant to be built at Dunkirk (France),
  which includes a maintenance contract;
• Steam
  turbine retrofit for Virginia Power in the US;
• Contract for a combined cycle power plant for EVN in
  Vietnam, including 2 x GT13E2;
• 2 x
  GT13 E2 for Naoc JV in Nigeria;
• Power
  plant refurbishment contract for CS Energy in
  Australia.

Sales in
Power amounted to  2,932 million in the first
quarter of fiscal year 02/03, a decrease of 11% versus the
first quarter of fiscal year 01/02, reflecting the decline in
deliveries of the GT 24/26.

Transmission and Distribution (T&D)

Orders
received in the first quarter of fiscal year 02/03 increased by
20% versus previous quarter at  1,092 million and
remained flat versus the same period of last fiscal year. As of
1
^st April 2002, Power Conversion was integrated in
T&D in order to extract synergies from their complementary
products and markets (all T&D figures are presented
including Power Conversion).

In Q1,
the main orders received were:

• Substations (extension 200 kV and 500 kV) for
  Transelec in Chile;
• 18
  distribution sub-stations for CFE, the state electrical
  utility in Mexico;
• Supply
  of protection and control products for the National Grid
  Company in the UK.

T&D
sales amounted to  824 million in the first quarter
of fiscal year 02/03, an increase of 11 % versus the first
quarter of fiscal year 01/02, itself a relatively low
quarter.

T&D
continued its industrial reorganisation to improve product
standardisation and specialisation of manufacturing
sites.

Transport

Orders
received by Transport in the first quarter of fiscal year 02/03
amounted to  1,624 million, an increase of 5%
versus the previous quarter. On a comparable basis versus the
same period of last year, orders increased by 20%. On a
reported basis, orders decreased 10% versus Q1 of fiscal year
01/02 because of the disposal of GTRM.

This
significant increase reflects a buoyant market in rolling stock
as the result of continuing urbanisation and the consequent
increase of investment in urban and suburban rail
infrastructure. Transport registered several successes
world-wide, notably in Northern Europe and in the US.

In Q1,
the main orders received were:

• 55
  suburban trains in Sweden;
• 62 new
  metro cars for Washington D.C. (US);
• 135
  coach cars for New Jersey Transit (US);
• 20
  suburban trains and 8 pendolino trainsets in Finland;
• Nanjing metro in China
• Major
  service orders in Australia and Ireland.

Sales in
Transport amounted to 1,116 million in the first
quarter of fiscal year 02/03. On a comparable basis versus the
same period last year, and as a consequence of to the
favourable trend in orders received in past fiscal years, the
increase was 22%. The increase on a reported basis was only 12%
due to the disposal of GTRM.

Marine

Orders
received by Marine in the first quarter of fiscal year 02/03
amounted to  19 million, versus  5
million in the first quarter of fiscal year 01/02. The
orderbook still represents approximately two years of sales,
and there is now renewed interest in new cruise ship
ordering.

Sales
remained flat at  343 million in the first quarter
of fiscal year 02/03 versus the same period of last fiscal
year. In the first quarter of fiscal year 02/03, Marine
delivered two cruise-ships, the
European Stars to Festival and the
Constellation to RCCL.

Marine
also progressed in the construction of other vessels, such as
Queen Mary II for Cunard and
Crystal Serenity for NYK.

 

Outlook

The
encouraging order intake performance in the first quarter of
the current fiscal year, gives confidence that we can maintain
an overall stable level of orders and sales for the full year,
despite our expectation of a continuing uncertain economic
environment.

 

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Contacts

Press
enquiries: G. Tourvieille

(Tel.
+33 1 47 55 23 15)

gilles.tourvieille@chq.alstom.com

Investor
relations: E. Rocolle-Teyssier

(Tel.
+33 1 47 55 21 70)

investor.relations@chq.alstom.com

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

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Explanatory Notes

This
document explains the assumptions used to determine comparable
figures between June 2001 and June 2002.

Analysis of orders received and sales on a comparable
basis

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

• Orders
  received and sales contributed by activities sold since 30
  June 2001 have been excluded from the first quarter of fiscal
  year 01/02.
• Orders
  received and sales contributed by activities acquired since
  30 June 2001 have been added to the first quarter of fiscal
  year 01/02 using historical data or same data of fiscal year
  02/03 when historical data are not available.
• No
  modification is performed on fiscal year 02/03
  figures.

Acquisitions

Railcare Ltd and Transport Services Calgary have
been acquired since the end the first quarter of fiscal year
01/02. The total impact on comparable figures for June 2001
is a  17 million increase in orders received
and  20 million in sales.

No
other major activity has been acquired since 30 June
2001.

Disposals

The
Contracting Sector and GTRM within the Transport Sector, were
sold since 30 June 2001. The total impact on comparable
figures is presented in the table below.

No
other major activity has been sold since 30 June 2001.

 

Geographic Breakdown

 

 

Forward-Looking Statements

This
Press Release contains, 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. Examples of such forward-looking
statements include, but are not limited to (i) projections or
expectations of sales, income, operating margins, dividends,
provisions, cash flow, debt 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 inherent risks
and uncertainties that the forecasts, projections and other
forward-looking statements will not be achieved. Such
statements are based on management s 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 and control costs while maintaining high quality products
and services; (v) the timely development of new products and
services; (vi) the inherent technical complexity of many of
ALSTOM s 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
ALSTOM s 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 ALSTOM s Sectors; (x) the availability of adequate cash
flow from operations or other sources of liquidity to achieve
management s objectives or goals, including our goal of
reducing indebtedness; (xi) timing of completion of the actions
focused on cash generation contemplated in ALSTOM s 'Restore
Value' programme; (xii) 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; (xiii) the inherent difficulty in estimating ALSTOM s
exposure to vendor financing which may notably be affected by
customers payment default; (xiv) the unusual level of
uncertainty at this time regarding the world economy in
general; and (xv) ALSTOM s 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 Commission des Opérations de Bourse
and 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.