ALSTOM informs European Works Forum select committee on
Power Turbo-Systems restructuring project

ALSTOM informs European Works Forum select committee on
power turbo-systems restructuring project

In line with the strategic plan announced on 12 March 2003,
ALSTOM today began the process to inform trade union
representatives regarding its overhead reduction and industrial
restructuring plans.

The first of these restructuring plans, concerning mainly
the Power Turbo-Systems Sector, was presented today to the
Select Committee of the Groups European Works Forum. The
project aims to improve operational performance and adapt the
Sectors industrial base to the severe downturn in the
power generation market.

The Power Turbo-Systems Sector, which currently employs
around 11,000 people in turnkey plant activity and in component
activities (heavy duty gas turbines, large steam turbines and
generators) is facing a sharp downturn of the gas turbine
market, a decrease in orders for steam power plants and a
significant market overcapacity.

The main countries which would be affected are France,
Germany, Italy, Poland, Switzerland and the UK, with a proposed
reduction in employee numbers close to 3,000 people.

Following todays meeting, all necessary consultation
with our social partners will take place in the concerned
countries, as part of the Groups commitment to find
appropriate solutions for those employees affected.

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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