Update on orders trend and action plan

Speaking at the Annual General Meeting in Paris today,
ALSTOM's Chairman and Chief Executive Officer Patrick Kron gave
the following update on trading and the execution of the Action
Plan announced on 12 March:

In our full-year results announcement on 14th May we
reported a slowdown in orders during fiscal year 2003,
particularly during the final quarter of the year, reflecting
the weak global economy, tightening financial markets and sharp
deterioration in the worldwide power generation equipment
market.

While these difficult market trends continue, we expect
order intake for the first quarter 2003/04, on a comparable
basis, to be above the preceding quarters level
(3.4 bn), although well below the high level registered
during the equivalent period last year (5.2 bn).
Detailed sales and orders figures for the first quarter 2003/04
will be published on 18th July.

We are actively implementing the action plan. We have
already secured 1.5 billion proceeds from disposals. In
the sales process of our Transmission & Distribution
Sector, we are at the stage of receiving definitive offers. We
have just received one such offer which we will study over the
coming days. On the basis of an analysis of all the offers
received, we will decide how to proceed. Furthermore, the
actions aiming at improving our operational performance have
been launched.'

ALSTOM will publish a press release at the end of the Annual
General Meeting covering the main resolutions adopted.

Press relations:  S. Gagneraud/ G. Tourvieille


Tel: +33 1 47 55 25 87/+33 1 47 55 23 15

internet.press@chq.alstom.com

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


Tel: +33 1 47 55 26 34

investor.relations@chq.alstom.com

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of Section 27A of the Securities Act of 1933 and Section 21E
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such forward-looking statements include, but are not limited
to (i) projections or expectations of sales, orders received,
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actual results to differ materially from the plans,
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with customary amounts or terms; (vii) the timing of and
ability to meet the cash generation and other initiatives of
the new action plan, particularly, the ability to dispose of
the Transmission and Distribution business and certain real
estate assets on favourable terms or in a timely fashion;
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of the foregoing. 

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