Alstom Enters into Two Electricity Transmission Agreements in Russia

Regulatory News:

Alstom (Paris:ALO) is continuing with its long-term strategy to establish a presence in Russia and signed during the St. Petersburg International Economic Forum two agreements to produce and engineer equipment for high-voltage electricity transmission.

"Alstom is keen - alongside its main economic and institutional stakeholders - to support Russia's infrastructure development. We are extremely proud that our knowledge and expertise in generating and transmitting electricity are acknowledged by leading companies in Russia's industrial sector which was proved by the two signed agreements”, said Patrick Kron, chairman and CEO of Alstom.

Alstom Grid and Soyuz Holding S.A. signed a Memorandum of Understanding (MoU) in the presence of Federal Grid Company (FSK), who welcomes the notifying advancement of joint venture negotiations to begin local manufacture and commercialisation of Alstom Grid high voltage switchgear products by the end of this year.

The MoU builds on an agreement signed between Alstom Grid and FSK in October 2010, which established the framework for an ongoing industrial and technology collaboration, specifically, to implement Smart Grid technologies in the modernisation of the Russian electrical grid. Manufacturing for the new joint venture is set to take place in the existing high voltage switchgear facilities of Soyuz in Mozhaisk.

Alstom Grid has joined forces with KER Ltd. to study the creation of a joint venture for engineering and project execution in the High Voltage Direct Current (HVDC) sector. The objective of the joint venture is the localisation of expertise in Russia, as well as the realisation of a direct current Engineering Centre in Saint Petersburg by the end of 2011. Alstom Grid is a recognised leader in HVDC technology, essential to carrying greater electrical loads over extremely long distances, reliably and efficiently. This new joint venture would enable locally based interests to play a major role in the supply and development of HVDC projects such as Vyborg – LAES, linking Russia to Finland.

Alstom Grid has been supplying electrical equipment and engineered projects in Russia for over 50 years, and already has manufacturing, engineering and service activities in Krasnoyarsk, Yekaterinburg and Moscow.

About Alstom

Alstom is one of the world's leading providers of electricity production and transmission infrastructures, as well as rail transport infrastructure. The Group sets the benchmark for innovative and environmentally-friendly technologies. It builds the world's fastest trains and the highest capacity automated metros. Alstom also provides integrated turnkey power plants, equipment and various associated services for a range of energy sources including hydroelectricity, nuclear power, gas, coal and wind energy. It offers a vast range of solutions for transmitting electricity; particularly in the area of "smart grids”. Alstom employs around 93,500 people in nearly 100 countries and generated turnover of more than €20.9 billion in 2010/11.

Websites: www.alstom.com, www.alstom.com/power, www.alstom.com/grid

ALSTOM – 3 avenue André Malraux – 92309 Levallois Perret Cedex – France