ALSTOM's comments following analyst's report

Following an analyst report published this morning, Patrick
Kron, Chairman and CEO of ALSTOM commented :

We are aware of the allegations regarding
ALSTOMs pricing policy made by a competitor, that we
obviously deny.

Two specific contracts have been mentioned in this report:

-A Chilean rail contract ; ALSTOM has had several successes in
Chile in recent years, based on a technically superior offer
and in particular, low cost Brazilian manufacturing. The offers
submitted by this competitor were, we believe, based on
European manufacturing, which most observers would recognise as
more costly. Our net margin on these projects is clearly
positive and in line with ALSTOM Transports
profitability objectives.

-The order announced recently for heavy-duty gas turbines in
Spain; this was won in the face of intense pressure by
international competitors and the company has made no secret of
the fact that it was priced aggressively. This allegation is
part of a wide ranging campaign attempting to prevent ALSTOM
from reintroducing its GT26 in the market, as illustrated by
competitors predatory pricing on projects targeted by
ALSTOM.

Such surprising comments made by a competitor highlight the
current successful commercial recovery of ALSTOM, due to the
quality of our products and the increasing confidence of our
customers.

Press relations:

G. Tourvieille/S. Gagneraud

(Tel. +33 1 47 55 23 15)

Investor relations:

E. Chatelain

(Tel. +33 1 47 55 25 33)