Kazakhstan entrusts the modernisation of its rail industry to KTZ and Alstom-Transmashholding

Press release, 27 October 2010:

Kazakhstan Temir Zholy (KTZ), Alstom and Transmashholding (TMH), set up
as a joint venture¹,
that will supply 295 electric locomotives to the Kazakh railway company. The
contract was signed in Paris on 27 October 2010
by Philippe Mellier, President of Alstom Transport, Askar Mamin, Chairman
of Kazakh Railways and Andrey Andreev, Managing Director of Transmashholding in
presence of the President Republic of Kazakhstan, Nursultan Nazarbaev and the President French Republic,
Nicolas Sarkozy.

Five months after a tripartite memorandum of cooperation was signed in
Almaty²,
Kazakh Railways confirmed their electric locomotive order for a total of
1.3 billion. Alstom evaluates its share of the contract at approximately 800
million. The contract will take effect on 11 March 2011. This is the first
contract won outside of Russia
by Alstom and Transmashholding as part of the strategic partnership initiated
by the two companies in 2009. It illustrates the joint Alstom-TMH strategy
of establishing a lasting presence in Kazakhstan, and more generally on
the 1520-mm gauge market.

This order is for a total of 200 double freight (KZ8A) and 95 passenger
locomotives (KZ4A). Both models will incorporate Alstom technology (such as the
traction system), as well as a number of other components to be manufactured by
Alstom-TMH in Russia.
The double BoBo freight locomotives are among the most powerful in the world
(8800 kW). They will be able to tow up to 9000 tonnes and will be capable of
running at 120 km/h. The passenger locomotives will make it possible - for the
1^st time in Kazakhstan
- to run trainsets at 200 km/h and to reduce the journey time between Almaty
and Astana by 3 hours. Both types of locomotives are designed to operate at
temperatures as low as -50°C.

Alstoms Belfort
plant will deliver the first freight locomotives in 2012, and the first
passenger locomotives are slated for delivery in 2014. The following
locomotives will then be built in Astana at a factory the construction of which
will begin sometime over the next few weeks for completion in 2012. It will be
equipped by Alstom and TMH and is expected to reach its annual production
capacity of 50 double (100 sections) in 2016. This project should contribute to
the development of a true Kazakh rail industry.

This contract will result in the creation of 650 qualified jobs in Kazakhstan. In France, over 120 employees from Alstoms Belfort manufacturing
plant will be assigned to the project for a five-year period. Other Alstom
sites (Le Creusot, Ornans, Tarbes and Villeurbanne in France,
and Charleroi in Belgium) will also contribute
around 100 employees to the project. The performance of this contract will
have an impact on employment for suppliers (one job at Alstom creates some
three jobs for its suppliers).

About Alstom Transport  

Alstom Transport develops and offers the most
complete range of systems, equipment and services on the rail market, with
sustainable transport always in mind. Alstom Transport is capable of managing
complete transport systems, comprising rolling stock, signalling equipment,
maintenance services and infrastructure. It also offers turnkey solutions. In
2009-2010, Alstom Transport recorded sales of 5.8 billion. Alstom Transport is present in over 60 countries and
employs some 27,000 people.

About
Transmashholding 

Transmashholding is Russias
leading railway equipment manufacturer. In particular, it manufactures electric
and diesel locomotives, converters, freight and passenger cars, suburban and
metro cars, diesel engines for locomotives and diesel generators. TMH
posted sales of 1.7 billion in 2009. The company employs over 54,000 workers.

 Alstom
contacts:

Press

Philippe Kasse, Stéphane Farhi
(Corporate)                            Karen Brouiller (Transport)

Tel +33 1 41 49 29 82 /33
08                                                            Tel +33 1 57 06 18 42
philippe.kasse@chq.alstom.com                                              karen.brouiller@transport.alstom.com  

stephane.farhi@chq.alstom.com   

 

 Investor relations:                                                                

Emmanuelle Châtelain, Juliette Langlais - Tel + 33 1 41 49 37 38 / 21 36                                                                                                                                                                                                      emmanuelle.chatelain@chq.alstom.com
, juliette.langlais@chq.alstom.com
 

Website www.alstom.com 

^{1 EKZ: joint
company held equally by the Alstom consortium (25%), TMH (25%) and Kazakh
Railways (50%).} 

^{2Alstom and Transmashholding
(TMH) signed a memorandum of cooperation during the Kazakhstan Investment Forum
on 3 June 2010 with Kazakh Railways (KTZ) for the production of electric
locomotives.}