Alstom creates a third Sector - Alstom Grid

By its acquisition on 7
June 2010 of Areva T&Ds transmission business, Alstom completes a decisive
stage in its development by forming a new sector, named Alstom Grid, to
supplement the existing two sectors in power generation and rail transport,
Power and Transport. Priced at 2.3 billion, this acquisition gives a new
dimension to the Group, which, now with its three activities, achieves sales of
more than 23 billion and employs more than 96,000 people.

In Finland Alstom Grid employs about 260 people in two main sites
(Tampere, ex. Nokian Capacitors, and Vantaa), bringing the total number of
Alstom local employees to more than 470 working in seven sites (Vantaa,
Tampere, Nokia, Raahe, Viiala, Kokkola, Oulu).

In Finland Alstom Grid represented sales of 53 million in 2009. With a
presence of over 50 years in Finland,
Alstom Grid is one of the major product and system suppliers to the Finnish
Grid and energy companies. The Finnish Alstom Grid has globally well-known
products, systems and know-how to improve power transmission efficiency,
reliability and power quality.

Alstom Grids portfolio of ongoing projects in Finland include :
- Supply of Series Capacitor Banks to Hydro-Québec - Jacques Cartier project in
Canada
- Supply of SVC MaxSine STATCOM solution to ensure full wind farm Grid Code
compliance to Scottish & Southern Energy Renewables - Dunneil project in
Ireland
- Supply of Utility SVC to Brilhante Transmissora de Energia - Imbirussu
project in Brazil

This acquisition occurs after Alstom and Schneider Electric announced in July
2009 they were launching a joint acquisition offer of Areva T&D. At the end
of November 2009, Alstom and Schneider Electric entered into exclusive
negociation with Areva for the acquisition of its transmission and distribution
business, then signed the acquisition agreement end of January 2010. The
closing of this transaction took place yesterday, according to the planned
schedule.

Alstom Grid, which is Alstoms high-voltage transmission business, will be its
third sector alongside Power and Transport. This sector will benefit from all
the synergies and all the resources that the Group has, particularly in its
international network having a presence in 70 countries, its technological and
industrial capabilities and in the existing links between the high-voltage
electricity transmission and power generation business, says Patrick Kron,
Alstoms Chief Executive Officer.

The Alstom Groups third sector, alongside Alstom Power (sales of 13.9 billion
in 2009/10, 50,000 employees) and Alstom Transport (sales of 5.8 billion in
2009/10, 25,000 employees), Alstom Grid generated sales of over 3.5 billion in
2009. Employing 20,000 people on more than 90 manufacturing sites worldwide,
Alstom Grid is among the top three groups specialising in electricity
transmission, along with ABB and Siemens.

Alstom Grid brings its customers more than 100 years of experience in the
development of the world electrical grids, advanced technologies and expertise
in key domains such as power electronics, ultra high voltage, direct current
interconnections, integration of renewables into the grid and network
management solutions. Alstom Grid has all the necessary advantages in terms of
technologies, manufacturing and people to continue to be a leading contributor
to the smarter grids of the future,, says Henri Poupart-Lafarge, President of
Alstom Grid.

The new sector, headquartered in France at La Défense, the business district
west of Paris, has four main businesses: Products (electrical equipment of the
ultra-high-voltage and high-voltage electricity transmission system, 53% of
sales), with world leading positions in disconnectors and instrument
transformers; Systems (network management systems and big turnkey projects, 34%
of sales), with a leading position in HVDC solutions (high voltage direct
current) thanks to its expertise in power electronics; Automation
(sophisticated information systems for real-time management of electricity
grids); and Service.

Geographically, 2009 sales are equally divided between Europe (27%),
Africa-Middle East (31%), Asia-Pacific (28%) and the Americas (14%). Beyond the current
economic slowdown caused by the financial crisis, the transmission business is
part of a world market which is estimated to be growing at approximately 3% per
year over the next five years. Alstom Grid expects to benefit from this dynamic
to create a stable development by strengthening its positions in its target
markets, both geographically and technologically. It already benefits from its
strong positions in Europe, the Middle East, India
and Latin America on which it is planning to
build. Furthermore, it aims to reinforce its presence in the two key areas of China and North America,
essential for its future growth and where there is scope to improve its market
share