RNS Number:4204K
Alstom
28 April 2003

                      ALSTOM SELLS ITS INDUSTRIAL TURBINES BUSINESSES 
                                 TO SIEMENS FOR Euro1.1 BILLION

ALSTOM announces that it has signed binding agreements to sell its small gas
turbines business and its medium-sized gas turbines and industrial steam
turbines businesses in two transactions to Siemens AG, which are key steps in
its continuing disposal programme.

The total enterprise value of the two transactions is Euro1.1 billion. Net cash
proceeds to ALSTOM are expected to be approximately Euro950 million after deduction
of debt transferred and certain other adjustments for cash items.

The first transaction will cover the small gas turbines business, and the second
transaction will cover the medium-sized gas turbines and industrial steam
turbines businesses.

The industrial turbines businesses being sold account for approximately 10% of
ALSTOM's Power sector revenues and sales are typically to specialist industrial
customers, for example in the oil and gas industry. They include:

* the small gas turbines business (3 MW - 15 MW) based principally in the UK;

* the medium-sized gas turbines business (15 MW - 50 MW) based principally in 
  Sweden;

* the industrial steam turbines (up to about 100MW) business with manufacturing 
  sites in Sweden, Germany and the Czech Republic, and global customer service 
  operations.

In the year ended 31 March 2003, ALSTOM's industrial turbines businesses
generated sales of approximately Euro1.25 billion and an estimated EBIT(1) margin
of approximately 7%. They employ some 6,500 people.

The transactions are subject to regulatory clearances and documentation is being
submitted to the relevant merger control authorities.

Commenting on the sales, Patrick Kron, Chairman and CEO of ALSTOM said:

"These transactions constitute a key milestone in our action plan to strengthen
our financial base. We thank all our employees in the industrial turbines
businesses for their support and are confident that they will have a successful
future within the Siemens Group."

Dresdner Kleinwort Wasserstein and Credit Agricole Indosuez are acting as
financial advisers to ALSTOM on the disposal.

ALSTOM is the global specialist in energy and transport infrastructure. The
Company serves the energy market through its activities in the fields of power
generation and power transmission and distribution, and the transport market
through its activities in rail and marine. In fiscal year 2001/02, ALSTOM had
annual sales in excess of Euro23 billion and employed 112,000 people in over 70
countries. ALSTOM is listed on the Paris, London and New York stock exchanges.

Press enquiries:    G. Tourvieille / M. Dowd 
                    Tel. +33 1 47 55 25 60 
                    internet.press@chq.alstom.com

Investor relations: E. Rocolle-Teyssier
                    Tel.+33 1 47 55 25 78
                    investor.relations@chq.alstom.com

(1) Earnings before interest and taxation


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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