An unprecedented scheme - ALSTOM shares the success of its
recovery with its 60,000 employees

This initiative allows employees to share in the
Groups collective success, and to be closely linked to
its development strategy.  Announced in November 2005 by
Patrick Kron, Chairman & CEO of ALSTOM, the initiative was
dependent on the achievement of the Groups major
financial objectives, considered important for the
Groups recovery, stated as positive free cash-flow and
an operating margin of 5.6%.



With the announcement of the 2005/06 fiscal year results last
May, ALSTOM confirmed that its objectives had been achieved,
indeed exceeded, with a positive cash-flow of 525
million and an operating margin of 5.6%.



In line with the commitment made, employees in the 62 countries
where ALSTOM is present will benefit from this scheme. This
distribution of free shares will represent 0.5% of the
Groups capital and will increase the stake held by
employees to 1.5%. ALSTOM intends to further increase
employees shareholding in the Groups capital.



In clear terms, after an initial acquisition period of two
years, then a vesting period of the same length, employees can
sell their shares from 20 May 2010 onwards. On the same day, in
countries where the allocation of shares has not been possible,
employees will receive a cash equivalent of the 12 shares,
based on an average of the share price over the previous 20
trading days.



With Awards for All, ALSTOM employees can
see their efforts rewarded, after a number of difficult
years says Patrick Dubert, Senior Vice President, Human
Resources. Whats more, at the heart of a
redefined, stronger Group, enjoying restored profitability and
strong development prospects, employees will share in the
success of their company over the years to come, associating
their individual contribution to ALSTOMs collective
success. Awards for All will equally be an
important tool for dialogue and objective sharing within the
Group.



* on June 26, 2006 at 11hrs,  ALSTOMs share was
listed at 69,50 on the Paris Bourse. Twelve actions thus
represented on this date the equivalent of 834.



Press Contact :  


   


Philippe Kasse (Corporate) 


+ 33 1 41 49 29 82     

press@chq.alstom.com

• file_35439_53263.pdf