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Frost & Sullivan Award Recognises ALSTOM Power Service's Superlative Performance

Posted on: Monday, 21 November 2005, 06:00 CST

LONDON, November 21 /PRNewswire/ -- In recognition of its leadership in the highly profitable power plant services market, the successful reorganisation of its various equipment and service businesses and its impressive turnaround following the problems experienced with its large heavy-duty gas turbines, ALSTOM Power Service has been conferred the prestigious 2005 Frost & Sullivan Energy Company of the Year Award.

Grouping its service activities under the ALSTOM Power Service umbrella, ALSTOM Power Service has established itself as a leader in the power services arena. Globally, ALSTOM Power Service's revenues reached EUR2,844 million in the fiscal year 2004/2005, an increase of 6 per cent over the previous fiscal year. Orders recorded even stronger growth, rising by 9 per cent over the same period, to EUR3,228 million.

In addition to leading in the key European markets, and continuing to grow its business well above the industry average in that region, ALSTOM Power Service is also well positioned for strong future growth in Asia due to buoyant equipment sales in important markets such as China and India.

Responding to evolving customer needs, ALSTOM Power Service is transforming itself from a pure service provider into a complete asset management company. Full operation and maintenance (O&M) contracts already account for over 10 per cent of the company's total power services revenues.

Restructuring has been central to ALSTOM Power Service's success with the company reorganising its power business division into three specialised units - Power Turbo Systems, Power Environment and Power Service. Supported by its vast experience in developing, maintaining and operating varied power plants in different parts of the world, ALSTOM Power Service has increasingly followed a strategy of not only targeting its own turbines and other equipment, but also that of other OEMs.

"This reorganisation also fits in well with the strategies pursued by the world's major power generation companies," remarks Harald Thaler, Manager of Frost & Sullivan's Energy Group. "As power markets liberalise, there is greater demand for global service offerings and ALSTOM Power Service, with its global presence and experience in a vast array of technologies, is very well placed to meet the demand for such integrated global offerings."

Exhibiting a rapid comeback from the problems associated with the GT24/26 models of gas turbines, ALSTOM Power Service has reached agreements with virtually all affected customers even as it has received new orders for these machines from major markets as Spain and Thailand.

"As a result of these strategies, ALSTOM Power Service now finds itself in the unique position where it is able to leverage its vast power generation equipment knowledge and expertise in the services sector, which is a higher-margin business and is also much less cyclical in nature than the traditional equipment business," concludes Mr. Thaler.

"Substantial investments in this high-growth business, successful reorganisation of all power-related divisions and the resolution of problems linked with the heavy-duty gas turbines accompanied by enhanced customer confidence, have underlined the company's excellent all-round performance, making it the undisputed recipient of this award."

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com/.

Frost & Sullivan Awards are presented to companies that demonstrate best practices in their industry, commending the diligence, commitment, and innovative business strategies required to advance in the global marketplace. Frost & Sullivan rigorously analyses specific criteria to determine award recipients in a broad spectrum of market industries and landscapes. For more information, visit http://www.awards.frost.com/.

Media Contact Magdalena Oberland Corporate Communications Frost & Sullivan P: +44-(0)20-7915-7876 E: magdalena.oberland@frost.com

Frost & Sullivan

CONTACT: Media Contact: Magdalena Oberland, Corporate Communications,Frost & Sullivan, P: +44-(0)20-7915-7876, E: magdalena.oberland@frost.com

Source: PRNewswire

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