---

MAN Acquires ALSTOM's Diesel Engine Operations

22 February 2000

MAN Acquires ALSTOM's Diesel Engine Operations

    PARIS, Feb. 22 -- Engineering companies ALSTOM of France and
MAN of Germany have agreed terms for the acquisition by MAN of ALSTOM's Diesel
engines business.  Through this acquisition, the MAN Group will strengthen its
activities in the field of large Diesel engines.  With economic effect as of
31 March 2000, MAN B&W Diesel AG, Augsburg, will take over ALSTOM Engines Ltd.
of the UK with its brands Ruston, Paxman and Mirrlees Blackstone.  ALSTOM
Engines Ltd. supplies on a worldwide scale medium and high speed Diesel and
gas-fuelled engines with outputs ranging from 500 kW to 15.000 kW, which are
primarily incorporated into fast ferries, navy and coast guard ships, luxury
yachts, locomotives, power stations and packaged generator sets.  ALSTOM
Engines Ltd. employs some 1500 persons, has an annual business volume of some
euro 200 million and its business is profitable.
    For MAN this move represents a diversification in profitable and growing
markets for high speed engines as well as valuable extension of its presence
in the market for medium speed engines.  In terms of output the ALSTOM range
is situated above the upper end of the engine lines supplied by MAN
Nutzfahrzeuge AG.  The takeover is expected to yield synergies in
technological development, engine programmes and worldwide distribution in all
areas of application.  The Ruston, Paxman and Mirrlees Blackstone brands have
developed excellent reputations in their respective markets and are
complementary to the MAN and MAN B&W brands.  The plan is to maintain the
acquired business within the MAN family and to strengthen their technical and
brand identities, bringing a wider range of products to a wider range of
markets and place more resources at the disposal of customers.
    For ALSTOM the proposed deal is in line with the decision announced a year
ago to divest its non-core industrial businesses, representing about euro 850
million of sales by April 2000.  The announcement of this sale is another step
closer to the completion of this divestment process.
    The acquisition is subject to the approval of MAN's Supervisory Board and
of the relevant regulatory authorities.  It is anticipated that the
transaction will be completed in May 2000.  Consultation with employees of
ALSTOM Engines Ltd. and with key customers will commence immediately.

    CONTACT:  G. Tourvieille, gilles.tourvieille@chq.alstom.com, or
              S. Gagneraud, Severine.gagneraud@chq.alstom.com, or
              +33-1-47-55-22-71, or investor relations, H. Green,
              +33-1-47-55-25-78, or investor.relations@chq.alstom.com,
              all of ALSTOM