ALSTOM Wins Overhaul Order for Caltrain Commuter Cars.

HAWTHORNE, NY--(BUSINESS WIRE)--October 7, 1999--

ALSTOM (NYSE: ALS) has won an order worth US $ 34.7 million for the routine overhaul of 73 cars for the Peninsula Corridor Joint Powers Board (Caltrain). Funding in the amount of US $30.3 million for the first 63 cars is already in place, and the Board authorized its Executive Director to execute an option for the remaining 10 cars at a contract value of US $4.4 million, upon funding availability. Caltrain is the transportation agency responsible for the commuter railroad servicing the San Francisco - San Jose corridor. The service is operated by the National Railroad Passenger Corporation (Amtrak).

The stainless steel gallery cars, designed for push/pull operation, were built from1985 to 1987 by Nippon Sharyo. The contract provides for the overhaul of 73 cars (52 trailer cars and 21 cab cars) and a spare set of trucks. The refurbishment includes truck re-working, installation of new coupler and draft gear, new seats and carpet, and heating, ventilation and air conditioning.

"We are pleased that Caltrain has once again chosen ALSTOM to help them extend the life of their equipment, while enhancing dependability, safety and passenger comfort" said James Cherry, President ALSTOM Canada Transport. "This contract demonstrates ALSTOM's ability to provide American rail operators with service solutions that are customized to their needs."

The work will be carried out in ALSTOM Canada's plant in Montreal, Canada, where the company is currently overhauling 20 F40PH-2 locomotives for Caltrain's fleet. Final assembly will be done by ALSTOM's key sub-contractor, Amtrak, in its Beech Grove, IN and Wilmington, DE facilities. The vehicles will be overhauled in batches of five at a time so as not to disrupt service. The first cars will be delivered within 6 to 9 months of the contract's start date.

"Our partnership with ALSTOM is another example of Amtrak's business strategy in action to drive revenues by teaming up with industry leaders, " said George Warrington, Amtrak's president and chief executive officer. "And, winning this contract further proves that our maintenance facilities are staffed by some of the most skilled and experienced passenger rail workforce available anywhere."

This latest contract with Caltrain reinforces ALSTOM's strong position in the North American transit market, following orders for bi-level commuter cars for Amtrak's Southern California service, and for propulsion systems destined for the New York City subway and New Jersey Transit's Hudson-Bergen line. ALSTOM is also bringing its two decades of TGV experience to the design, manufacture and maintenance of Amtrak's high-speed "Acela" trains to link Washington, New York and Boston.

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, and electromechanical infrastructure for power supply, track and stations. These products are specified, produced, commissioned and guaranteed by ALSTOM. They are supplied at various levels of integration and customization according to customer needs, leading up to complete solutions comprising project finance and/or long-term concession partnership as well as partial or complete turn key construction of the complete transport system. ALSTOM also offers a complete range of maintenance and renovation services for trains and railroads, backed up by a world-class logistics organization for parts. The company strategy is to pursue its profitable growth into the next century through superior care for its customers and by investment in innovation and process management.