Orders & Sales: 01/04/2002 - 31/12/2002

First Nine Months - Orders & Sales


(1st April 2002 31st December 2002)

• Resilient performance in orders (-2%) and sales
  (+1%) on a comparable basis
• More than 450 million in disposals including
  further real estate in Europe (142 million) and
  captive insurance company (101 million)
• Debt reduction remains top priority

Commenting on the first nine months Orders and Sales
announced this morning, Patrick Kron, Chief Executive Officer
of ALSTOM, stated:

Since our last announcement two months ago, there has
been no major change in market trends: demand for Transport
remains strong, T&D is stable overall, while demand in
Power and Marine is still low in an uncertain economic
environment.


After completion of our current budget process, in mid-March I
will announce our plans and expectations for the coming years.
Debt reduction remains a top priority for ALSTOM and we expect
proceeds from real estate and business disposals to exceed the
original Restore Value target.

Reported Figures (Unaudited)

Comparable Figures (Unaudited)

Orders and sales, as reported, were impacted during the
first nine months of fiscal year 2002/03 by the translation
effect between euro and non-euro currencies, particularly the
US dollar (impact of approximately 4.1%), and by the change in
scope, mainly the disposal of Contracting in July 2001 and GTRM
(Transport) in September 2001. Comparable figures below adjust
the fiscal year 2001/02 figures for these impacts.

Orders received: -2%

Despite a poor economic environment overall orders received
during the third quarter of 2002/03 (4,953 million) were
above the second quarter of this year (4,863 million)
and the third quarter of the previous year (4,824
million).

On a comparable basis, order intake for the first 9 months
of fiscal year 2002/03 decreased by 2% compared with the same
period of the previous year, mainly due to Power (-16%) and to
a lesser extent Marine (-41%). Transport improved significantly
(+32%), taking advantage of a very buoyant market. T&D
remained stable (-1%).

The backlog, at 33 billion, remains equivalent to 19
months of sales.

Sales: +1%

On a comparable basis, cumulative sales for the first
three-quarters of fiscal year 2002/03 were up 1% versus last
year. This was mainly due to the performances of Transport
(+30%) and Marine (+27%), which offset the decrease in Power
(-10 %). T&D remained stable (+2%).

Geographic Breakdown

Comparable Figures (Unaudited)

Europe remained the main market for the Company, with 48% of
orders versus 37% at the end of December 2001, and continued to
grow (+13%).

Orders in North America decreased by 11%, reflecting the
collapse of the US energy market partly offset by a good
performance from Transport.

Orders in Latin America were down 41%, affected by the
economic crisis in this region.

Orders in Africa/Middle East were up 25% due to significant
demand for power infrastructure, particularly in the Middle
East.

Orders in Asia/Pacific decreased by 20%, largely due to a
decrease in Power orders, where several important projects were
secured in Malaysia and Australia last year.

More than 450 million of disposals

The Company is making significant progress with the real
estate and business disposals outlined in its Restore Value
plan:

• The South African subsidiary was sold for
  50 million in September 2002.
• The UK real estate portfolio was sold for
  175 million in December 2002. This
  portfolio constituted 19 properties, comprising 800 000
  square metres of buildings and 600 acres of land. The Company
  has taken leases on most of these properties, the average
  length of the leases being approximately 13 years.
• Two new agreements have just been signed for the sale of
  real estate in continental Europe, one with CDC Ixis Capital
  Market (120.5 million) and the other with a consortium
  including Morgan Stanley International Real Estate Funds and
  the group Foncière des Régions (21million),
  for a total of 142 million. These transactions cover
  16 sites in France, Spain, Switzerland and Belgium,
  comprising 310 000 square metres of buildings. Again, the
  Company has taken leases on the properties and the average
  length of the leases will be approximately 9 years.
• Sale of captive insurance company to be closed end of
  January for 101 million.
  
  
  
  In addition, in November 2002, the Company selected EDS as
  preferred bidder for the outsourcing of its IT services in 14
  countries. Negotiations are now well advanced.

Comments by Sector

Power

Despite long-term growth fundamentals, the power generation
equipment market is currently at a low level following the
collapse in US demand after an unprecedented boom.

Orders in Power decreased by 16% and sales by 10% compared
with the first 9 months of the previous fiscal year, with
contrasting trends in the Sectors constituent Segments.
Customer Service continued to grow while Steam Turbine
benefited from a very positive retrofit market, which offset
the decline in the US combined cycle market. Gas Turbine,
Industrial Turbine and the Heat Recovery Steam Generators
business of Boilers & Environment were also impacted by the
US market decline. However, demand in Gas Turbine remained
strong in the Middle East. Orders in the Hydro Power Segment
decreased, particularly in Brazil.

Important orders received in the third quarter included an
operation and maintenance contract for a GT24 gas turbine power
station in Mexico for Iberdrola; two 130 MW steam turbines as
part of a combined cycle conversion project for Israel Electric
Co and the first orders for our new GT10C gas turbine in
Egypt.

Whilst the US market remains difficult, ALSTOM is benefiting
from its global coverage, with a stable European utility
sector, a steady level of activity in the Middle East and
selective opportunities in Asia/Pacific.

Transmission & Distribution (T&D)

Overall the market remained flat with growth in
transmission, particularly high voltage systems, offset by a
continuing low level of activity in distribution products. The
relatively weak order intake for the nine months overall, (-1%)
was due to an exceptional low level of orders registered in
large projects in the third quarter 2002/03. Demand is buoyant
in China and the Middle East and the Company remains well
positioned to benefit from an improvement in the US market as
soon as a new regulatory regime is put in place. Sales remained
stable (+2%).

Transport

In a continuing strong market, Transport achieved a very
good performance both in orders (+32%) and sales (+30%). During
the third quarter some major orders were registered, including
the New York Metro (ALSTOMs share: 650 million)
and a 14-year maintenance contract for AVE in Spain (500
million).

The recently-announced contracts for the supply of new metro
trains in Barcelona (290 million) and the maintenance of
locomotives for BNSF in the US (420 million) have not
yet been included in the backlog. Based on the high level of
current activity, this positive trend for the Sector is
expected to continue.

In the UK, the last six regional trains were delivered. The
first Pendolino passenger service ran successfully in December
2002 on the West Coast Main Line, with commercial service due
to start by the end of January 2003.

Marine

The merger of the two main cruise operators in the market
and the weakening of the US dollar against the euro have
delayed orders for cruise-ships. However, the cruise holiday
market has recovered following the impact of 11 September
2001.

The other high added-value ship markets, including LNG
tankers, are more positive in the short term. Orders received
included an oceanographic ship for the French Ifremer Institute
and a luxury yacht.

Despite a significant decrease in orders (-41%), sales are
progressing well (+27%), reflecting the shipyards
backlog with 5 cruise-ships to be delivered over the next 15
months.

Resolution of the consequences of the Renaissance bankruptcy
is now well advanced, with 6 of the 8 vessels either sold or
chartered (three for long-term charter, one for short-term
charter and two sold to P&O Princess).

Outlook

The nine-month trend in orders and sales is expected to be
maintained for the full year 2002/03.

***

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 25 78)

investor.relations@chq.alstom.com

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

***

Forward-Looking Statements

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reports and communications of ALSTOM may from time to time
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Section 27A of the Securities Act of 1933 and Section 21E of
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that could cause actual results to differ materially from the
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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
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foregoing factors and other uncertainties and events, as well
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