An unprecedented scheme : ALSTOM shares the success of its
recovery with its 60,000 emplyees

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.

Contacts presse
:     


Philippe Kasse (Corporate) 


+ 33 1 41 49 29 82     

press@chq.alstom.com