Alstom in Canada Wins Multi-million Dollar Freight Car Order.

MONTREAL--(BUSINESS WIRE)--May 10, 1999--

ALSTOM has won an order worth a minimum of CAN $300 million to supply First Union Rail Corporation, the freight leasing arm of First Union National Bank, with 3100 freight cars. The contract calls for ALSTOM to supply four different types of cars, over a period of five years.

Manufacture of the freight cars will be carried out at ALSTOM's plant in Montreal, Canada. Work will begin during the summer of 1999, and the pace of production will be geared to the customer's readiness to take delivery.

ALSTOM is currently supplying First Union Rail Corporation with 500 steel coil freight cars. "This contract demonstrates ALSTOM's ability to establish strong relationships, not only with Class I railroads, but also with leasing companies who are increasingly dominant in the freight market, allowing us to increase our market share," commented James Cherry, President of ALSTOM Canada Transport. Jack Thomas, President of First Union Rail Corporation, added: "This strategic alliance offers First Union Rail the opportunity to quickly and accurately react to the rail car marketplace for new, high quality equipment, while providing to ALSTOM the building block of a secure order position for several thousand cars."

In connection with this contract, ALSTOM will invest CAN $4.5 million in increasing its freight car capacity, and CAN $4.7 million in general facility rationalization. A working group composed of representatives from ALSTOM, the provincial government, the Canadian Auto Workers Union (CAW) and RESO (Regroupement pour la relance economique et sociale du sud-ouest), a community development organization, was established in January to implement a recruitment and training plan.

ALSTOM Canada Transport is also engaged in locomotive refurbishment and re-manufacturing, and has won significant market share of this activity. Over a twelve-month period, ALSTOM will have delivered more than 140 refurbished locomotives to Class I railroads. This latest contract with First Union Rail Corporation complements ALSTOM's already strong position in the North American transit market, following orders from the Chicago and New York subways and New Jersey Transit. ALSTOM is also involved in the design, manufacture and maintenance of Amtrak's high speed "Acela" trains to link Washington, New York and Boston.

Notes to Editors: Charlotte-based First Union Corporation (NYSE:FTU) is a leading financial services company with assets of US $223 billion at March 31, 1999. Ranked as the nation's sixth largest bank and ninth largest brokerage affiliation, it serves 16 million customers who can access account information and purchase financial products at 2,400 retail offices, 3,500 automated teller machines, through the Internet at www.firstunion.com, or by calling First Union Direct at 800/ASK-FUNB.