ALSTOM REINFORCES ITS COMMITMENT TO CHINA'S NEW GREAT PLANS
FOR DEVELOPING THE HYDROPOWER

To ensure the sustainable supply of clean electricity, Chinese
government has given priority to the development of renewable
energies including hydropower in the 11th Five-Year Plan. 
Chinas new hydropower development plan focuses on the
development of Jinshajiang River in the southwest region. 
Four huge hydropower projects (Xiluodu, Xiangjiaba, Baihetan,
Wudongde) totaled 38500MW were planned along its lower reaches
while one reservoir with 8 cascades of hydropower stations
totaled 21150MW will be built on its middle reaches.

ALSTOM commits to actively participate in the construction of
these projects, building on its rich experience, substantial
references, and a well-established local industrial base to
reinforce its leadership position in Chinas hydropower
market.  As the largest power generation equipment supplier
to the Three Gorges Project, ALSTOM has won the 16x300MW bundled
Pumped Storage Hydro Projects (Baoquan/Huizhou/Bailianhe) in
2004, whereby ALSTOM has transferred its world leading Pumped
Storage units technology to Chinese
manufacturers.  

In December, 2005, ALSTOM has been selected with its partner
Dongfang for another project of this kind, the 4x300MW Heimifeng
Pumped Storage Project PSP) in Changsha of Hunan
Province.  The winning of this project, a continuation of
the similar projects in 2004, enabled ALSTOM to further transfer
its advanced technologies to Chinese manufacturers including
Dongfang and help them fully grasp the PSP technology.

ALSTOMs long term dedication to Chinas
hydropower development has also been embodied in its local
manufacture base--Tianjin ALSTOM Hydro Co., Ltd (TAH), a leading
supplier with more than 20% share of Chinas domestic hydro
market.   With the heavy investment and the full
technologies transferred from ALSTOM in the past 10 years since
its establishment, TAH has been transformed into the
worlds first class hydropower equipment manufacturer that
is capable of manufacturing & supplying the largest hydro
turbine (up to 900 MW) in the world.

Speaking about ALSTOMs commitment to hydropower in
China, Alain Berger, ALSTOM China President said Thanks to
our customers & partners, our unparalleled references in
Chinas hydropower market have provided us with unique
competitive advantages to participate in the grand hydropower
development plans of China.  We are fully committed to these
new growth opportunities and we hope to make further
contributions in enhancing the overall competence level and
sustainable development of Chinas hydropower industry,
through our dedication and continued transfer of our advanced
technologies, 

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ALSTOM is a global leader in power generation & services
and rail transportation infrastructure. ALSTOM's annual sales are
around 14 billion. It employs 69,000 people in over 70
countries worldwide.

 As one of the FORTUNE 500 companies, ALSTOM has invested
so far in China in 2 wholly owned enterprises including ALSTOM
(China) Investment Co. Ltd. and ALSTOM Technical Services
(Shanghai) Co. Ltd., as well as 8 joint ventures plus 2
subsidiaries in Hong Kong. The company employs more than 2300
people nation-wide.