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To: Steve Fancy who wrote (209)	11/17/1998 6:02:00 PM
From: Steve Fancy	Respond to of 3891

Alstom 1H Net Pft XEU120 Mln Vs XEU104 Mln Alstom SA - Paris 1st Half Sept. 30: All Figures In European Currency Units (XEU) 1998 1997 Net Pft 120 mln 104 mln Operating Pft 290 mln 269 mln Revenue 6.35 bln 6.49 bln EPS 0.56 0.49 PARIS (Dow Jones)--Franco-British engineering company Alstom SA (ALS) said Tuesday that net profit for the six months ended Sept. 30 rose 15% to XEU120 million, but warned of a possible slowdown in orders. "Obviously, the deterioration of the world economic situation may lead to a slowdown in orders for the next two reporting periods, compared to the high levels reached in 1997-1998 and forecast for 1998-1999," said Alstom Chairman Pierre Bilger. "But we are intensifying and accelerating our cost reduction program to preserve and strengthen our operating margins," he said. Operating profit for the six-month period rose 7.8% to XEU290 million from XEU269 million a year earlier, while the group's order book at the end of September stood at XEU7.3 billion, up from XEU6.4 billion. Revenue, however, dropped 2.2% to XEU6.35 billion from XEU6.49 billion a year earlier. In a statement, Alstom said the first-half results "should lead to an increase in both operating income and net income for the full year."

To: Steve Fancy who wrote (209)	11/17/1998 6:03:00 PM
From: Steve Fancy	Respond to of 3891

Alstom Shrs Fall 7.6% In Wake Of Orders Warning PARIS (Dow Jones)--Shares in Franco-British engineering group Alstom SA (ALS) were down 7.6%, or FRF11.5, at FRF139.5 in early trading Tuesday after the company's chairman warned of a likely slowdown in orders in coming months. "Obviously, the deterioration of the world economic situation may lead to a slowdown in orders for the next two reporting periods, compared to the high levels reached in 1997-1998 and forecast for 1998-1999," said Alstom Chairman Pierre Bilger early Tuesday. Also Tuesday, Alstom said that net profit for the six months ended Sept. 30 rose 15% to XEU120 million. "Bilger's comments are what is pushing the shares down, but I think the fundamentals of the company are still good," said Denis de Ambrogi, salesman at BNP Equities in Paris.

To: Steve Fancy who wrote (209)	11/17/1998 6:07:00 PM
From: Steve Fancy	Respond to of 3891

Alstom Grapples With Forecast Slowdown In Orders PARIS (Dow Jones)--Franco-British engineering company Alstom SA (ALS) said Tuesday it will tackle an expected slowdown in orders during the next two years by reducing costs, lowering investment and focusing on growth markets. Although the company reported Tuesday a 14% rise in new orders to XEU7.4 for the first half, from XEU6.4 billion a year before, Chairman Pierre Bilger warned at a press conference that new orders for the full year won't rise from the previous fiscal year. "We cannot speculate on the outcome of the Asian crisis, so we are getting ready for the worst-case scenario," Bilger said. Alstom declined to give specific details of its strategy, but said it plans to intensify its cost-reduction plan, lower its capital investments and concentrate on growing U.S., Middle East, Chinese and Indian markets in order to face the current downturn in certain Asian economies. Bilger said that the industrial division, which produces engines and control systems, was the most affected by the turmoil in Asian economies. He confirmed that the company wishes to shed some of these assets by March 1999, but declined to point to the specific units he intends to sell. The shipbuilding division's profitability ratios will be slightly higher than those seen in 1997, but lower than those previously forecast. In July, Alstom had said its operating profit expressed as a percentage of sales would reach 4% during the year ending March, up from the 2.3% reported for the year before. Bilger said a rise in U.S. orders compensated for the slowdown in Asia. At Sept. 30, they represented 21% of total orders, up from 15% in the like period last year. Alstom intends to make acquisitions in the U.S. in order to boost the market share of its energy and railway transportation divisions, said Bilger, who declined to give further details. Alstom said net profit for the first half rose 15% to XEU120 million, while revenue dropped 2.2% to XEU6.35 billion from XEU6.49 billion a year earlier. Alstom said the first-half results suggest the company will post "an increase in both operating income and net income for the full year." The company said it still intends to reach an operating margin of 6% by 2001-2002. Investors gave the Alstom figures a thumbs down. The stock was trading at FRF140.3 at 1210 GMT, having plunged 7.6% or FRF10.7. "Bilger's comments are pushing the shares down, but I think the fundamentals of the company are still good," said Denis de Ambrogi, salesman at BNP Equities in Paris. -David Gauthier-Villars; 33 (0) 1-5300-0303; dvillars@ap.org

To: Steve Fancy who wrote (209)	11/17/1998 6:08:00 PM
From: Steve Fancy	Respond to of 3891

Toshiba and Alcatel Announce Asymmetric Digital Subscriber Line (ADSL) Technology Agreement Toshiba to Develop and Market New ADSL Chipsets. SAN JOSE, Calif., Nov. 17 /PRNewswire/ -- Toshiba America Electronic Components, Inc. (TAEC) today announced that Toshiba Corporation of Japan and Alcatel (NYSE: ALA) have agreed to a licensing arrangement for Asymmetric Digital Subscriber Line (ADSL) technology under which Toshiba will develop, manufacture, and market chipsets which support the transmission of video, Internet services and other high-bandwidth data over conventional telephone lines. ADSL is viewed as one of the primary solutions to the bandwidth limitations plaguing businesses and consumers today. ADSL technology turns standard twisted-pair copper phone lines into a high-speed connection for Internet access, video conferencing, remote access and multimedia applications, such as video on demand. It supports an upstream bit rate of 640 kilobits a second and a downstream rate of up to 8 megabits per second. Downstream is allocated a higher bit rate to handle large data transfers after the initial upstream connection is made. Toshiba will introduce its first large-scale integrated circuits (LSI) using capabilities licensed from Alcatel in June, 1999. From this, Toshiba will develop ADSL LSI supporting ISDN in Europe and time-compression multiplex ISDN in Japan. Future developments will support G.Lite, the ADSL specification for 1.5 megabit per second downstream. Toshiba intends to combine the advantages of ADSL with its own capabilities in asynchronous transfer mode (ATM) switching, ethernet and RISC technology, and to apply the results to modem products, cost-effective solutions for PCs, and a series of high performance derivative products with a distinct technological edge. Toshiba can respond to customer demand for ADSL by applying its intellectual property to ASSP or customized ASIC products. "I am happy to welcome Toshiba as a valuable licensing partner in our strategic licensing program," said Martin De Prycker, VP and general manager Internet Access & ADSL, Alcatel. He continues, "Alcatel now has a well-balanced ADSL licensee portfolio, with a complete geographical coverage which will support the dominant position of Alcatel in the future ADSL market." "We are very pleased to form this alliance," said Javed Mohammed, TAEC's business development manager. "Alcatel is a leader in ADSL Technology. This agreement gives us excellent positioning in the emerging market for ADSL-supported technologies and solutions and -- together with our ATM and ethernet capabilities -- strengthens our presence in network applications." About Alcatel A world leader in telecommunications systems and equipment as well as related cables and components activities, Alcatel operates in over 130 countries. Alcatel provides complete solutions and services to operators, service providers, enterprises and consumers, ranging from backbone networks to user's terminals. For more information, visit the Alcatel web site at alcatel.com. About Toshiba Toshiba America Electronic Components, Inc. (TAEC) is the North American design, manufacturing, marketing and sales arm of Toshiba Corporation, one of the world's largest suppliers of semiconductors, integrated circuits and electronic components. TAEC offers one of the broadest IC product lines in the industry as well as technologically-advanced electron tubes and solid state devices, including color picture tubes, color display tubes, liquid crystal displays, rechargeable batteries, microwave components, laser diodes and optical transmission devices. In addition to its comprehensive offering of high quality components, the company markets a wide range of industry standard 2.5-inch hard disk drives, CD-ROM drives and DVD-ROM drives. The Systems IC Business Unit is located at 1060 Rincon Circle, San Jose, CA 95131. For more company information, please visit TAEC's Internet home page at: toshiba.com. /NOTE TO EDITORS: Reader inquiries please publish, 800-879-4963/ /CONTACT: Janet Schwegler of Toshiba America Electronic Components, Inc., 408-526-2535 (not for reader inquiries), * For reader inquiries publish 800-879-4963; Agency: Michelle Schneider, or Rick Sharga, both of Shafer Public Relations, 800-503-1177, or 949-553-1177/