ALSTOM To Supply 50 Remanufactured Locomotives in North American Leasing Deal.

Business/Transportation Editors

HAWTHORNE, N.Y.--(BUSINESS WIRE)--March 14, 2000

ALSTOM (NYSE: ALS) announced today that it will supply First Union Rail Corporation (FURC) with 50 SD40-2 remanufactured locomotives. FURC will lease the locomotives to CSX Transportation Inc. (CSXT), the US Class 1 railroad, under a multi-year lease agreement. The terms of the agreement were not disclosed.

ALSTOM will take SD40 locomotives from its own inventory and remanufacture them to SD40-2 configuration. The work will be performed at ALSTOM's Montreal, Canada facilities.

ALSTOM won the contract on the basis of its attractive delivery schedule and in conjunction with FURC's competitive lease terms. Work is already underway, with the first units delivered in early February 2000 and the balance to be delivered by April 2000.

"ALSTOM has already supplied several hundred `like new' remanufactured SD40's to other Class 1 carriers," said James Cherry, president of ALSTOM Canada Transport. "We are gratified that both FURC and CSXT, through this order, have expressed their confidence in the reliability and quality of ALSTOM's workmanship."

ALSTOM, with manufacturing facilities in the US, Canada and Mexico, offers the North American rail market a full range of rolling stock products and services including the remanufacture and maintenance of locomotives, complete manufacture of freight cars, signaling, and related services.