ALSTOM Awarded Follow-on Order for Chicago Subway Car Refurbishment.

HAWTHORNE, N.Y.--(BUSINESS WIRE)--Sept. 16, 1999--

ALSTOM (NYSE:ALS) has been awarded an order worth $54 million to refurbish 96 subway cars for the Chicago Transit Authority (CTA). This order represents the first option exercised by the CTA under a contract signed with ALSTOM in December 1997. That base contract, worth $169 million, provided for the overhaul of 284 cars, with three options for an additional 314 vehicles.

The refurbishment of the type 2600 Series cars will extend the operating life of the rolling stock to thirty years. To date, ninety cars have been refurbished under the base contract and shipped to the CTA. The work is three months ahead of contract schedule.

The cars are being fitted with an upgraded propulsion system and an advanced cab signal system. The interior refurbishment work includes the installation of air conditioning, a public address system, and improved lighting. The latest order includes two additional improvements, to be implemented starting with the 101st car: adding vandal shield to the windows, and installing silicone cleats which will reduce the long term wear on the high voltage cabling under the car.

The work is being carried out at ALSTOM's plant in Hornell, New York, in batches of up to 40 cars so as not to disrupt service.

This latest order further strengthens ALSTOM's position in North America and follows orders for bi-level commuter cars for Amtrak's Pacific Surfliner service, and for propulsion equipment destined for the New York City subway and New Jersey Transit's Hudson-Bergen line.

ALSTOM has grown its transport businesses to become the leading supplier to the rail transport industries of the world. The company offers urban and mainline rail transport owners and operators on every continent, a complete range of trains and train equipment, locomotives, signaling products and systems, as well railroad power supply, track, station utilities and depot facilities. These products are specified, produced or purchased, commissioned and guaranteed by ALSTOM. They are supplied at various levels of integration and customization according to customer needs -- from partial to full turn-key provision of a complete transport system which may comprise project finance and/or long-term concession partnership as well.

ALSTOM also offers a comprehensive range of maintenance and renovation services for trains and railroads, backed-up by a world-class logistics organization for parts.

The Company's strategy is to pursue its profitable growth into the next century through superior care for its customers and by sustaining investment in innovation and process management.