Full year results 2004/05: 1.4.2004 - 31.3.2005

Patrick Kron, Chairman
and Chief Executive Officer said: "The results we are presenting today
clearly demonstrate the ongoing recovery of ALSTOM."

ALSTOMs
recovery is clearly reflected in the FY04/05 results:

   ·Orders received of 15.8
billion, up 15 per cent on a comparable basis from FY03/04

    ·Operating income at 550 million, multiplied by three
on a comparable basis versus 168 million in the previous fiscal year; operating margin up from 1.2 per cent in FY03/04 to 4.0 per cent in
FY04/05

    ·Net losses cut in half to 0.86 billion from 1.84
billion in FY03/04 in spite of significant non-recurring charges

    ·Net debt strongly reduced during the fiscal year, down
to 1.4 billion from 3.7 billion

    ·Free Cash Flow showing
strong improvement at -170 million versus 

    
-1007 million in the last fiscal year

     ·Liquidity reinforced due to the financial
consolidation undertaken during the fiscal year

2005/06 objectives confirmed:

    ·6 per cent operating margin leading to a return to
profitability

    ·Positive Free Cash Flow with continuing debt reduction

The Board, in its meeting held on 30^th May 2005, has approved
the accounts for the fiscal year 2004/05. Commenting
on these results, Patrick Kron, Chairman & Chief Executive Officer said:
The results we are presenting today clearly demonstrate the ongoing recovery
of ALSTOM. All key indicators are in line with, or better than the guidance
previously given. These results enable us to confirm the FY 2005/06 targets
announced in March 2003 when we launched our recovery plan: an operating margin
of 6 per cent leading to a return to profitability and a positive Free Cash
Flow."