Re Contract

ABB Ltd
19 July 2001


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ABB wins US$ 17-million power transmission contract in Laos

Technology group undertakes large rural electrification project

Zurich, Switzerland, July 19, 2001 - Global technology group ABB says today it
has won a US$ 17-million contract to design and build a 340-kilometer power
transmission line, complete with a 282-kilometer power distribution network, as
part of an ongoing initiative to upgrade Laos' rural electrical infrastructure.

ABB says the order was placed by Electricite du Laos (EDL), the state-owned
utility, and is set for completion within two years. The project is financed by
the Asian Development Bank.

'This project is an excellent example of how ABB can help a national power
utility plan and implement a sustainable electrification program,' says Richard
Siudek, executive vice president and head of ABB's utilities division.
'Accelerated completion of the network will enable EDL to focus its resources on
delivering electricity to rural areas where it is greatly needed for economic
growth and standard of living improvements.'

The underdeveloped state of rural infrastructure in Laos has been a major
constraint to rural economic growth and poverty alleviation. According to
Siudek, ABB will use its expertise in rural electrification--gleaned from work
in parts of Africa, South America and other parts of Southeast Asia--to shorten
the construction schedule for expanding the power grid in the northern Laos
provinces of Luang Prabang, Xayaburi, Vientiane, Xaisomboun and Xieng-Khonuang.
The project will increase the number of electrified villages in Laos by about
three percent.

Under the terms of the project, ABB will erect and commission a 340-kilometer,
115-kilovolt (kV) double circuit transmission line, a 282-kilometer, 34.5 kV
distribution network, including distribution transformers. A team of ABB
engineers from Spain and Germany will carry out the work.
In related news, ABB recently announced that it had won US$ 300-million in
contracts to upgrade the power transmission network in Brazil. That work is also
slated for completion within two years.

ABB (www.abb.com) serves manufacturing, process and consumer industries,
utilities, the oil and gas markets, with 160,000 employees in more than 100
countries.