Law Offices of Marc S. Henzel Announces Class Action Lawsuit Against Alstom, SA.

Business Editors/Legal Writers

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Sept. 5, 2003

A class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of Alstom, SA (NYSE:ALS) from May 26, 1999 through June 29, 2003, inclusive (the "Class Period").

The complaint alleges that throughout the Class Period, defendants issued numerous positive statements concerning the growth and financial performance of its transportation subsidiary. These statements were materially false and misleading for the following reasons: (1) the Company underreported operating expenses by failing to recognize costs incurred in a rolling-stock supply railcar contract at its transportation unit in anticipation of shifting the costs to other contracts; (2) Alstom could not determine its true financial condition because the Company lacked adequate internal controls; and (3) as a result of the foregoing, the financial performance of the Company and its transport division was materially overstated, the value of the Company's losses was materially understated at all relevant times and the value of the Company's margins was materially overstated at all relevant times.

On June 30, 2003, before the NYSE opened for trading, Alstom announced that it was "conducting an internal review assisted by external accountants and lawyers following receipt of letters earlier this month alleging accounting improprieties on a railcar contract being executed at the Hornell, New York facility of Alstom Transportation Inc. (ATI), a US subsidiary of the Company." During the review, the Company "identified that losses have been significantly understated in ATI's accounts, in substantial part due to accounting improprieties by the understatement of actual costs incurred, including by the non-recognition of costs incurred in anticipation of shifting them to other contracts, and by the understatement of forecast costs to completion." As a result, the Company announced that it would record an additional net after tax charge of 51 million euros ($55 million) for the fiscal year ended March 31, 2003. The Company also announced that the SEC and the United States Federal Bureau of Investigation had advised the Company of informal inquiries related to ATI. Lastly, the Company announced that both the Senior Vice President and the Vice President of Finance of ATI had been suspended pending the completion of the review.

Plaintiff is represented by The Law Offices of Marc S. Henzel. If you are a member of the class, you may, no later than October 28, 2003, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.

If you have any questions concerning this case or your rights or interests with respect to these matters, please contact: Marc S. Henzel, Esq. of The Law Offices of Marc S. Henzel, 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by telephone [phone] or [phone], by facsimile [phone], by e-mail at [e-mail] or visit the firm's website at http://members.aol.com/mhenzel182.