Re Contract

ABB Ltd
20 March 2002


ABB wins US$ 22 million contract to build IT platform for 
Korea Power Exchange 

New IT system will operate Korea's competitive wholesale power market 

Zurich, Switzerland, March 20, 2002 - ABB, the global power and automation
technology company, said today it has won a US$ 22 million contract from the
Korea Power Exchange to provide the IT systems and software infrastructure to
operate South Korea's deregulated energy market. 

ABB won the project as part of an international consortium with local company
Korea Electric Power Data Network, and will supply the systems and software for
market participants to submit bids, receive awards and interact with the central
exchange. The IT system also executes the mathematical models used to determine
market prices, create power generation schedules and ensure the security of the
electricity supply for the entire country. 

Noting that several developing countries in Southeast Asia have begun energy
market restructuring, Richard Siudek, executive vice-president and head of ABB
Utilities division, said; 'We are very excited to be able to play a role in that
process. This important project will set the standard for deregulated power
markets for the whole of Southeast Asia, and will help the South Korean energy
market to meet the demands of a robust economy, as well as provide for future
growth.' 

ABB sub-contractor OM Technology Energy Systems will provide the financial
settlement systems. Korea Electric Power Data Network will provide part of the
system hardware and local implementation and support, while its subcontractor
Samsung SDS will supply more of the hardware and the metering systems. The total
value of the project is more than US$ 37 million (KW 50 billion). 

The IT systems are planned for delivery in July of 2002. The deregulated power
market in South Korea is scheduled to open on January 1, 2003.

'ABB won a decisive victory in our technology assessment,' said Korea Power
Exchange executive director, Kim Young Chang. 'Their system can optimize both
energy markets and ancillary services simultaneously. They also have substantial
experience, having delivered the IT systems that serve the energy markets of the
large economies in the U.S. and Canada. That was also an important factor in our
decision.' 

The Korean energy market is similar in size to California and growing rapidly,
with 48,000 megawatts of generation and a 2000 peak demand of 41,000 megawatts.
Over the last decade, generation capacity has more than doubled while demand has
increased by an average of ten per cent per year. 

ABB is a global leader in power and automation technologies that enable utility
and industry customers to improve their performance while lowering environmental
impact. ABB has 155,000 employees in more than 100 countries. 



For more information please contact:

Media Relations 
ABB Corporate Communications, Zurich 
Thomas Schmidt 
Tel: [phone] 
Fax: [phone] 
[e-mail] 

Investor Relations 
Switzerland: Tel. [phone] 
Sweden: Tel.[phone] 
USA: Tel. [phone] 
[e-mail] 
 



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