ALSTOM Completes the Sale of its Small Gas Turbines Business to Siemens

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ALSTOM announces that, further to
the announcement of 28 April 2003, it has completed the first
of two transactions with Siemens AG, being the disposal of
the small gas turbines business. The enterprise value of this
transaction is €575 million, with net proceeds to
ALSTOM of approximately €525 million. 

Completion of this transaction
follows receipt of a formal derogation from the European
Commission under the EC merger regulation, allowing ownership
of the business to be transferred to Siemens AG with
immediate effect. Siemens AG has committed not to integrate
the small gas turbine business with its own businesses until
formal merger clearance has been obtained from the European
Commission in relation to all the industrial turbines
businesses. 

Pending merger clearance, the
medium gas turbines and industrial steam turbines businesses
to be acquired by Siemens AG will continue to be owned and
managed by ALSTOM. 

Further announcements will be made
in due course. 

Press Enquiries :
Gilles Tourvieille

Tel. : +33 1 47 55 23 15

Fax. :
internet.press@chq.alstom.comInvestor relations :
E. Rocolle-Teyssier

Tel. : +33 1 47 55 25 78

Fax. :
investor.relations@chq.alstom.com