Battles 6,500 Asbestos Related Claims in United States Courts ------------------------------------------------------------- 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.