Battles 6,500 Asbestos Related Claims in United States Courts
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Published November 15, 2002

ALSTOM reports that its exposure to asbestos-related claims or 
litigation, in the US or elsewhere, is insignificant.  When ALSTOM 
purchased ABB's power generation activities in 1999, the asbestos risk 
was retained by ABB Ltd, the ABB parent company in Switzerland. ABB Ltd 
assumes full liability for any asbestos claim against ALSTOM, in the US 
and elsewhere, concerning the activities acquired from ABB. 

The reorganization of ABB's US subsidiary under Chapter 11 of the US 
bankruptcy code, which ABB announced as an option to resolve its 
asbestos liability, would therefore have no adverse impact on ALSTOM. 

Alstom said 6,500 individual legal claims for asbestos damage had been 
filed against it in the United States, but any financial  impact from 
the legal actions would be minimal. 

CEO Pierre Bilger told a conference call Alstom was among 200 companies 
targeted in the 6,500 individual complaints, which between them covered 
60 separate cases.  The company said "approximately 5,800 of these 
claims are asserted in two very recently filed cases in Mississippi, 
where the company is one of over two hundred defendants" and where 
Alstom would attempt to seek indemnity from a third party. 

Given the risk of potentially large awards to claimants in the United 
States and the unknown amount of indemnities provided by ABB, dealers 
said investors were not willing to take chances regarding asbestos 
lawsuits, which could mirror the large payments faced by the tobacco 
industry in the US in recent years. 


COMPANY PROFILE

ALSTOM (NYSE: ALS)
25, avenue Kleber
75116 Paris Cedex 16, France
Phone: +33-147552000
Fax: +33-147552861
http://www.alstom.com

Employees                   :         118,995
Revenue                     : $20,422,700,000
Net Income                  :   ($121,400,000)
Assets                      : $24,559,900,000
Liabilities                 : $23,033,700,000

As of March 31, 2002

Description:  ALSTOM is ready whether you need more power by the hour or
are just waiting for your ship to come in. The company makes 
power-distribution equipment for the transfer of electricity to large 
customers. ALSTOM is also a leading maker of rail equipment such as 
railcars and signaling devices. The company also makes luxury passenger 
ships (such as the Queen Mary 2), naval vessels, and natural gas 
tankers. Its Alstom Power subsidiary -- formed when it acquired ABB Asea
Brown Boveri's stake in joint venture ABB Alstom Power - makes 
power-generation systems and constructs power plants. Other businesses 
include electrical drives, motors, and generators.