ALSTOM and AAI Form Alliance to Deliver Integrated Controls and Hardware Solutions

March 24, 2003

ALSTOM Power Inc. (ALSTOM) and Automation Applications Inc, LLC (AAI) have formed an alliance to provide a compelling combination of equipment, service and technology to assist customers increase equipment reliability and realize associated revenues faster.

The alliance agreement, signed in late 2002, brings a one-dimension approach in maintenance service, hardware equipment and controls improvement to the pulp and paper market - resulting in real customer value. By combining ALSTOM's strength as a leading original equipment manufacturer and service provider with AAI's solid reputation for delivering superior regulatory and optimization control solutions, customers can gain a long-term competitive advantage.

Under the alliance, the two companies will participate in joint marketing, project planning, and implementation. Together, the relationship strengthens each company’s ability to develop, support and execute projects for the pulp and paper industry.

“As a result of this customer-driven alliance, two market-leading companies represent a new competitive force in the market, said Dave Gadai, Director Pulp and Paper, ALSTOM Power Inc. “ALSTOM will offer a winning boiler controls solution with AAI technology, while AAI can enjoy increased presence in the pulp and paper market through ALSTOM’s installed base of customers.”

“Customers are constantly looking for ways to stretch their maintenance dollar, without compromising the reliability or availability of their equipment,” said Dave Pasciolla, President, AAI. “The ALSTOM-AAI alliance makes it possible to deliver just that by using new hardware upgrades, combined with advanced controls on their existing equipment.”

The ALSTOM-AAI strategic alliance provides the marketplace with the optimum mix of hardware and control modifications to improve incremental payback on mill projects.

Moreover, by providing a single source of supply for integrated controls solutions, customers’ entire energy system can be maximized to take advantage of the total available steam at the lowest possible cost.

About ALSTOM SA

ALSTOM SA, the parent company of ALSTOM Power Inc., is the global specialist in energy and transport infrastructure. The Company serves the energy market through its activities in the fields of power generation and power transmission and distribution, and the transport market through its activities in rail and marine. In fiscal year 2001/2002, ALSTOM had annual sales in excess of €23 billion and employed 118 000 people in over 70 countries. ALSTOM is listed on the Paris, London and New York stock exchanges.

About AAI

Automation Applications Inc, LLC is an engineering firm specializing in the design, implementation and integration of advanced process controls. AAI provides coordinated powerhouse control systems and energy solutions. Headquartered in Exton, PA, the company has been servicing the pulp & paper, refining, chemical and pharmaceutical industries since 1990.

Visit ALSTOM Power Inc. at www.service.power.alstom.com

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. ALSTOM disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.