ALSTOM sells its Industrial Turbines Businesses to Siemens
for €1.1 billion

ALSTOM announces that it has signed binding agreements to
sell its small gas turbines business and its medium-sized gas
turbines and industrial steam turbines businesses in two
transactions to Siemens AG, which are key steps in its
continuing disposal programme.

The total enterprise value of the two transactions is
1.1 billion.  Net cash proceeds to ALSTOM are
expected to be approximately 950 million after deduction
of debt transferred and certain other adjustments for cash
items.

The first transaction will cover the small gas turbines
business, and the second transaction will cover the
medium-sized gas turbines and industrial steam turbines
businesses.

The industrial turbines businesses being sold account for
approximately 10% of ALSTOMs Power sector revenues and
sales are typically to specialist industrial customers, for
example in the oil and gas industry.  They include:

• the small gas turbines business (3 MW 15 MW)
  based principally in the UK;
• the medium-sized  gas turbines business (15 MW
  50 MW) based principally in Sweden;
• the industrial steam turbines (up to about 100MW)
  business with manufacturing sites in Sweden, Germany and
  the Czech Republic, and global customer service
  operations.

In the year ended 31 March 2003, ALSTOMs industrial
turbines businesses generated sales of approximately
1.25 billion and an estimated EBIT(1) margin of
approximately 7%. They employ some 6,500 people.

The transactions are subject to regulatory clearances and
documentation is being submitted to the relevant merger control
authorities.

Commenting on the sales, Patrick Kron, Chairman and CEO of
ALSTOM said:

These transactions constitute a key milestone in our
action plan to strengthen our financial base.  We thank
all our employees in the industrial turbines businesses for
their support and are confident that they will have a
successful future within the Siemens Group.

Dresdner Kleinwort Wasserstein and Crédit Agricole
Indosuez are acting as financial advisers to ALSTOM on the
disposal.

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.

Press enquiries
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Investor relations
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Tel. +33 1 47 55 25 78

investor.relations@chq.alstom.com