ALSTOM informs European unions on a restructuring project
concerning the Utility Boilers business

This business is part of ALSTOM's Power Turbo systems /Power
Environment Sector and focuses on supplying new clean-coal
boilers, and providing products and services to coal-based
power plants.

The need to right-size the ALSTOM's Utility Boilers business
has been forced by a decline in the accessible market for new
equipment utility boiler orders in Europe and the US, with a
shift of the substantial proportion of the market to Asia.

The final project was defined following extensive
consultation with employee representatives and the evaluation
of several different solutions. The project recognises the need
to maintain a local presence and access to the retrofit
markets, and to keep our technical competencies and experience
base.

Consequently, the final project considers:

• Right-Sizing of the European Operation on two locations
  in Germany and in France
  • In Stuttgart, Germany, it is planned to re-adjust the
    organisation to its areas of highest contribution,
    resulting in a reduction of the work force. It is envisaged
    that 200 (out of 300) positions would be retained.
  • In France, it is envisaged that approximately 50
    positions (out of 250 currently in Vélizy) would be
    retained and located in the Paris region.
    
     
• Right-sizing of the US Operation
  • In Windsor (Connecticut) the implementation of tools
    and processes would lead to productivity improvements
    resulting in a reduction of up to 40 positions.

The Project has been presented to the European Works Forum
Select Committee today. Further consultations will be done with
employee representatives. Measures will be taken to minimize
the impact of this plan on all concerned sites.

Press relations:

S. Gagneraud / G. Tourvieille

Tel. +33 1 41 49 27 40

internet.press@chq.alstom.com

Investor relations:

E. Châtelain

Tel. +33 1 41 49 37 38

investor.relations@chq.alstom.com