ABB Acquires Major Stake in Xiamen Electrical Controlgear Factory

Xiamen, China, September 9, 2001 – ABB, the global technology group announced today that it has reached an agreement with Xiamen State-Owned Assets Investment Company to acquire eighty percent shares of the Xiamen Electrical Controlgear Factory. The acquired company is active in the manufacturing and sale of medium and low voltage electrical equipment, and has been a partner of ABB in Xiamen for many years. The joint venture agreement under the new company name ABB Xiamen Electrical Controlgear Co. Ltd., will be signed during the 5th China Investment Forum held this month. ABB will be honoured by the attendance of senior Chinese Government Officials during the ceremony.

The acquisition further enhances ABB’s leading position in the medium voltage switchgear market in China, expanding the existing product portfolio of locally produced switchboards and outdoor equipment. The newly acquired company will concentrate on the production of outdoor equipment for domestic consumption and export to the South East Asian markets.

“We are excited about this new venture. It complements our existing portfolio and it opens new opportunities to address the local medium voltage equipment market, offering customers a wide selection of choice. It also fosters better use of management resources, facilities, and our existing operations in Xiamen,” said Mr. Peter Leupp, President and Country Manager of ABB (China) Ltd.

In China, ABB is already a market leader for a full range of power technology products such as transformers and switchgear. This is the fourth plant in Xiamen and the 27th in the country, making Xiamen a major production base for ABB for high voltage, medium voltage and low voltage electrical equipment

ABB (www.abb.com) is a leading supplier of power products, automation products and financial services, as well as industry-specific products, solutions and services – to the utilities, manufacturing and process industries, and the energy sector. The group has 160,000 employees in more than 100 countries.