Alstoms styrelse godkänner General Electrics bud

The Board of Directors of Alstom received, on June 20, 2014, an update to the offer from General
Electric (GE) to acquire the power and grid businesses of Alstom. It also received on June 20, 2014, a
revised proposal from Siemens and Mitsubishi Heavy Industries.

The ad hoc committee of independent directors appointed by the Board on April 29, 2014 and led by
Jean-Martin Folz, thoroughly reviewed, on multiple occasions, the proposed transactions. Based on the
works of the committee and financial and legal advisors, the Board of Directors has unanimously
decided to issue a positive recommendation of the offer from GE.

The Directors of Alstom expressed their satisfaction that the productive exchanges established with the
French State had resulted in a business proposal that not only addresses the interests of Alstom and of
its stakeholders, but also provides assurances in connection with concerns expressed by the French
State.

GENERAL ELECTRIC OFFER
GE would acquire, as previously announced, the Thermal Power, Renewable Power and Grid Sectors, as
well as corporate and shared services (the Energy Transaction) for a fixed and unchanged price
representing an Equity Value of €12.35bn and an Enterprise Value of €11.4bn.

Under the terms of the updated offer, following completion of the Energy Transaction, Alstom and GE
would establish joint ventures in Grid and Renewable Power.

In Grid, each company would hold a 50% stake in a global business combining Alstom Grid and GE
Digital Energy. In Renewables, each company would hold a 50% stake in Alstom’s Off-shore Wind and
Hydro businesses.

In addition, Alstom and GE would create a 50/50 Global Nuclear and French Steam alliance, which
would include the production and servicing of the “Arabelle” steam turbine equipment for nuclear
power plants, as well as Alstom’s steam turbine equipment and servicing for applications in France. In
addition, the French State would hold a preferred share giving it veto and other governance rights over
issues relating to security and nuclear plant technology in France.

The investment by Alstom in these Energy related alliances represents ca. €2.5bn, assuming these
companies are debt-free, cash-free. The terms of these alliances include usual shareholders agreements
with standard governance and liquidity rights.

Finally, GE proposes the creation of a global alliance in which GE would sell Alstom 100% of its signaling
business, with sales of ca. US$500m in 2013 and 1,200 employees, and the companies would sign
multiple collaboration agreements including a service agreement for GE locomotives outside of the
United States, R&D, sourcing and manufacturing and commercial support in the United States.

The ad hoc committee of independent directors reviewed the transaction proposed by GE with the
assistance of its financial and legal advisors. The financial expert appointed to advise the Board has
concluded that the financial consideration offered by GE to Alstom is fair from a financial point of view.
The legal advisor appointed to advise the Board has concluded that GE's offer appears, from a legal
point of view, favorable to the company, particularly in light of the fact that it provides for a fixed and
final purchase price, does not require representations and warranties and, with the updates proposed by
GE, addresses adequately the French State’s concerns. The Board, acknowledging unanimously the
strategic and industrial merits of this offer, has decided to issue a positive recommendation of this offer,
authorizing Mr. Patrick Kron, in his capacity of Chief Executive Officer of Alstom, to engage in the next
step of the process, with the information and consultation of the competent works councils within the
Alstom group.

SIEMENS AND MITSUBISHI HEAVY INDUSTRIES PROPOSAL
Further, the Board of Directors, with the assistance of the ad hoc committee and its legal and financial
advisors, reviewed the proposal received from Siemens and Mitsubishi Heavy Industries, as presented
to the ad hoc committee on June 16, 2014, and its improved proposal received on June 20, 2014.

Under the terms of the improved proposal, Siemens would acquire Alstom’s gas business for an equity
consideration of €4.3bn, a €400m improvement versus the initial proposal. MHI would buy a 40 percent
equity stake in the combined steam, grid and hydro business of Alstom through one single holding
company, for a consideration of €3.9bn. In addition, Siemens would offer to enter into an up to 50/50
Joint Venture with Alstom in Signaling and Mobility Infrastructure.

After review, the Board has unanimously determined that this proposal does not adequately address the
interests of Alstom and of its stakeholders.

NEXT STEPS
Completion of the GE transaction will be subject to works council consultation and merger control and
other regulatory clearances, including French Foreign Investment authorisation. In accordance with the
AFEP-Medef code, the final approval of the transaction will be submitted to the shareholders.

Should this offer be approved and completed, Alstom would refocus on its fully owned Transport
activities and on its Energy alliances with GE. Alstom would use the proceeds of this transaction to
strengthen its Transport business, to invest in its Energy alliances, to pay down its debt and return cash
to its shareholders.

Patrick Kron, Chairman and CEO of Alstom, commented: “The combination of the very complementary
Energy businesses of Alstom and GE would create a stronger entity, best placed to serve customers
globally and invest in people and technology over the long run. Alstom would be associated to this
ambitious combination through the Energy alliances. Alstom Transport, a solid leader with a large
portfolio of technologies and a worldwide presence in a dynamic market, would be further strengthened
through the acquisition of GE's signaling business as well as a far-reaching rail alliance with GE.”

För mer information kontakta: 
Ulrika Andersson, kommunikationsdirektör på Alstom
Telefon +46 (0)8 723 32 84
ulrika.andersson@alstom.com