ALSTOM Wins Order for Propulsion Equipment From Kinki-Sharyo.

HAWTHORNE, N.Y.--(BUSINESS WIRE)--Oct. 7, 1999--

ALSTOM (NYSE: ALS) has signed a contract to supply propulsion systems and auxiliary inverters for 30 light rail vehicles being supplied by Kinki-Sharyo to the Santa Clara Valley Transit Authority (SCVTA), in California. The SCVTA light rail line began operation in 1987 and carries 6.2 million passengers a year in "Silicon Valley."

The 30 vehicles, similar to light rail vehicles built for New Jersey Transit, will be fitted with ALSTOM's ONIX 800 traction motors and CARA auxiliary converters. ONIX systems use advanced Insulated Gate Bipolar Transistor (IGBT) technology, which brings the benefits of low volume and weight, low noise operation, excellent reliability and reduction in maintenance costs and energy consumption. The equipment will be roof-mounted to accommodate the low-floor vehicles. ALSTOM is working with Kinki-Sharyo to ensure compatibility of performance, braking and overall operations at the trainline level, so that these new vehicles will be compatible with the rest of the fleet.

ALSTOM is the world leader in electric propulsion and train electronics, and its IGBT propulsion systems account for 60% of the world market share. The SCVTA order is the second project for which Kinki-Sharyo has chosen ALSTOM's ONIX drives. ALSTOM is the traction drive supplier to the consortium of Ratheon-Itoachui-Kinki-Sharyo, which has the design/build/operate contract for New Jersey Transit's Hudson Bergen light rail transit system.

The traction equipment will be manufactured in ALSTOM's Hornell, New York facility. The first trainsets are scheduled to enter service in November 2001, with the final vehicles delivered by September 2002.

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 as 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.