Mitsubishi Heavy Industries and Siemens specify proposal to Alstom

The specified proposal continues to preserve Alstom's current perimeter in almost all its activities, enhances its industrial sustainability, strengthens its financial structure, enabling it to be a approx. Euro 20 billion revenue French listed group. With additional 1,000 new created jobs by MHI and additional 1,000 apprenticeship training positions by Siemens the proposal will foster job creation in France. MHI and Siemens continue to firmly believe that their proposal is the best one for Alstom, its employees, its clients, its shareholders and French national interests. Such proposal is superior industrially, financially and socially.

The specifications result in the following measures:

MHI now intends to buy a 40 percent stake in the combined steam, grid and hydro business of Alstom. This amendment will significantly simplify the implementation of the transaction, as this investment may now be undertaken through one single holding company, as opposed to three JVs as contemplated in its June 16th proposal. Therefore cash contribution from MHI increases by Euro 800 million, from Euro 3.1 billion up to Euro 3.9 billion, while the valuation of the underlying businesses remain unchanged.

Based on a subsequent, more advanced opportunity / risk analyses Siemens had been able to increase its cash offer by Euro 400 million. This will increase the total evaluation of the proposal accordingly to Euro 4.3 billion.

In addition to the proposed Letter of Intent for the Rail business, Siemens offers to enter immediately into a Joint Venture for Mobility Management including Signalling between Alstom and Siemens.