A new milestone in ALSTOMS long-term cooperation
with the Peoples Republic Of China

ALSTOM reinforced its long-term cooperation with the
Peoples Republic of China announcing a contract worth
around 65 million euros for a 300 MW circulating fluidized bed
boiler for the site of Baima, Sichuan Province, People's
Republic of China.  The contract was signed today in
Beijing by  Zhao Xizheng, President of the State Power
Grid Corporation of China and Patrick Kron, ALSTOMs
Chairman and CEO, in the presence of Wen Jiabao, Chinese
Premier and Jean- Pierre Raffarin, French Prime Minister during
his official visit to the Peoples Republic of China.

Under the terms of this contract, ALSTOM will supply
Chinas biggest CFB boiler in cooperation with Dong Fang
Boiler Group.  In addition, a transfer of CFB technology
will be granted for 15 years to the three main Chinese boiler
manufacturers, Dong Fang, Harbin and Shanghai Boiler Works and
the main Chinese Design Institutes.

ALSTOMs leading-edge combustion technology allows
coal to burn cleanly and efficiently so that in countries with
large deposits of coal, such as China, this natural resource
can be fully exploited to produce clean energy. CFB technology
provides maximum fuel flexibility with very low emissions, as
well as high availability and exceptional reliability. It is
one of the most efficient and versatile combustion methods for
utility-scale steam generation.

At the signing ceremony, Patrick Kron said : « This
contract marks a new phase in ALSTOMs close cooperation
with the Peoples Republic of China.  We are proud
that our  advanced clean coal technology will contribute
towards a cleaner environment and we look forward to a long and
successful collaboration with our Chinese partners ».

It is planned that Dong Fang, Harbin and Shanghai Boiler
Works will construct several units of this kind in co-operation
with ALSTOM in order to ensure the efficient implementation of
CFB technology.

This new order confirms ALSTOMs position as the world
leader for utility CFB boilers.

ALSTOM is the global specialist in energy and transport
infrastructure. The Company serves the energy market through
its activities in the fields of power generation and power
transmission and distribution, and the transport market
through its activities in rail and marine. In fiscal year
2001/02, ALSTOM had annual sales in excess of 23
billion and employed 112,000 people in over 70 countries.
ALSTOM is listed on the Paris, London and New York stock
exchanges.

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