RNS Number:0732N
Alstom
02 July 2003

                                                                     2 July 2003



                                     ALSTOM

                     UPDATE ON ORDERS TREND AND ACTION PLAN


Speaking at the Annual General Meeting in Paris today, ALSTOM's Chairman and
Chief Executive Officer Patrick Kron gave the following update on trading and
the execution of the Action Plan announced on 12 March:


"In our full-year results announcement on 14th May we reported a slowdown in
orders during fiscal year 2003, particularly during the final quarter of the
year, reflecting the weak global economy, tightening financial markets and sharp
deterioration in the worldwide power generation equipment market.


While these difficult market trends continue, we expect order intake for the
first quarter 2003/04, on a comparable basis, to be above the preceding
quarter's level (Euro3.4 bn), although well below the high level registered during
the equivalent period last year (Euro5.2 bn). Detailed sales and orders figures for
the first quarter 2003/04 will be published on 18th July.


We are actively implementing the action plan. We have already secured Euro1.5
billion proceeds from disposals. In the sales process of our Transmission &
Distribution Sector, we are at the stage of receiving definitive offers. We have
just received one such offer which we will study over the coming days. On the
basis of an analysis of all the offers received, we will decide how to proceed.
Furthermore, the actions aiming at improving our operational performance have
been launched."


ALSTOM will publish a press release at the end of the Annual General Meeting
covering the main resolutions adopted.


Press relations:                S. Gagneraud/ G. Tourvieille
                                (Tel. +33 1 47 55 25 87/+33 1 47 55 23 15)
                                internet.press@chq.alstom.com

Investor relations:             J-G. Micol/A. Rebiere
                                (Tel. +33 1 47 55 26 34)
                                Investor.relations@chq.alstom.com



This press release contains, and other written or oral reports and
communications of ALSTOM may from time to time contain, forward-looking
statements, within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934.  Examples of such
forward-looking statements include, but are not limited to (i) projections or
expectations of sales, orders received, income, operating margins, dividends,
provisions, cash flow, debt or other financial items or ratios, (ii) statements
of plans, objectives or goals of ALSTOM or its management, (iii) statements of
future product or economic performance, and (iv) statements of assumptions
underlying such statements.  Words such as "believes", "anticipates", "expects",
"intends", "aims", "plans" and "will" and similar expressions are intended to
identify forward looking statements but are not exclusive means of identifying
such statements.  By their very nature, forward-looking statements involve risks
and uncertainties that the forecasts, projections and other forward-looking
statements will not be achieved.  Such statements are based on management's
current plans and expectations and are subject to a number of important factors
that could cause actual results to differ materially from the plans, objectives
and expectations expressed in such forward-looking statements.  These factors
include: (i) the inherent difficulty of forecasting future market conditions,
level of infrastructure spending, GDP growth generally, interest rates and
exchange rates; (ii) the effects of, and changes in, laws, regulations,
governmental policy, taxation or accounting standards or practices; (iii) the
effects of currency exchange rate movements; (iv) the effects of competition in
the product markets and geographic areas in which ALSTOM operates; (iv) the
ability to increase market share, control costs and enhance cash generation
while maintaining high quality products and services; (v) the timely development
of new products and services; (vi) difficulties in obtaining bid, performance
and other bonds with customary amounts or terms; (vii) the timing of and ability
to meet the cash generation and other initiatives of the new action plan,
particularly, the ability to dispose of the Transmission and Distribution
business and certain real estate assets on favourable terms or in a timely
fashion; (viii) the availability of adequate cash flow from operations or other
sources to achieve management's objectives or goals; (ix) the effects of
disposals and acquisitions generally; (x) the unusual level of uncertainty at
this time regarding the world economy in general; and (xi) ALSTOM's success at
adjusting to and managing the risks of the foregoing.



The foregoing list is not exhaustive; when relying on forward-looking statements
to make decisions with respect to ALSTOM, you should carefully consider the
foregoing factors and other uncertainties and events, as well as other factors
described in other documents ALSTOM files or submits from time to time with the
U.S. Securities and Exchange Commission ("SEC"), including ALSTOM's Annual
Report on form 20-F and reports submitted on Form 6-K. Forward-looking
statements speak only as of the date on which they are made, and ALSTOM
undertakes no obligation to update or revise any of them, whether as a result of
new information, future events or otherwise.



This press release is not an offer to sell securities or the solicitation of an
offer to buy securities, nor shall there be any offer or sale of securities in
any jurisdiction in which such offer or sale would be unlawful prior to
registration or qualification under the securities laws of such jurisdiction.


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