ALSTOM Revised Consolidated Accounts

ALSTOM today announced that it is conducting an internal
review assisted by external accountants and lawyers following
receipt of letters earlier this month alleging accounting
improprieties on a railcar contract being executed at the
Hornell, New York facility of ALSTOM Transportation Inc. (ATI),
a US subsidiary of the Company.

The review has identified that losses have been
significantly understated in ATIs accounts, in
substantial part due to accounting improprieties by the
understatement of actual costs incurred, including by the
non-recognition of costs incurred in anticipation of shifting
them to other contracts, and by the understatement of forecast
costs to completion.

The contracts concerned are all fixed-price contracts and
there is therefore no financial impact on customers.

An additional net after tax charge equivalent to 51 ME is
being recorded in ATIs accounts for the year ended 31
March 2003. The Chairman & CEO of the Company will propose
to the Board of Directors for approval modifications to the
consolidated accounts for the year ending 31 March 2003,
including an additional net after tax charge of 51 ME. It will
also be proposed to the Board of Directors to approve a
resolution providing that such modified accounts be submitted
for approval to the Annual Shareholders Meeting of the Company
to be held on 2 July 2003.

Both the Senior Vice President and the Vice President of
Finance of ATI have been suspended pending the completion of
the review.

The Company has been advised of informal inquiries related
to ATI, by the United States Securities and Exchange Commission
and the United States Federal Bureau of Investigation. 
ALSTOM is cooperating fully with the investigating
authorities.

Press relations:  S. Gagneraud/ G. Tourvieille

   (Tél. +33 1 47 55 25
87)                    

   
internet.press@chq.alstom.com

Investor relations: J-G. Micol/A. Rebière

   (Tél. +33 1 47 55 26 34)  

   
Investor.relations@chq.alstom.com