Re Contract

ABB Ltd
10 July 2003



ABB wins US$ 90 million contract in Saudi Arabia

Flexible AC Transmission Systems for added power in Riyadh area

Zurich, Switzerland, July 10, 2003 - ABB, the leading power and automation
technology group, announced today it has won a turnkey contract worth US$ 90
million to install Flexible AC Transmission Systems (FACTS) technology in Saudi
Arabia.



The installation will improve the transmission capability of a 380-kilovolt
power transmission corridor by 80 percent, preventing power shortages in the
Riyadh area during summer peaks and eliminating the need to build costly new
transmission lines or power generation facilities.



'With FACTS, more power can reach consumers at lower investment costs and with a
minimal impact on the environment,' said Peter Smits, head of ABB's Power
Technologies division. 'This high-end power technology enhances the security,
capacity and flexibility of existing power transmission systems.'



ABB will design, manufacture, install and commission four series compensation
units in the existing transmission corridor between the Eastern and Central
regions of the Saudi Electricity Commission (SEC) grid. Series compensation is
part of FACTS technology and enables grid owners to increase capacity while
maintaining or improving grid stability.



ABB's system is the first series compensation technology to be used in Saudi
Arabia. ABB leads the growing field of FACTS, with 40 contracts worth more than
US$ 600 million in the past three years.



ABB will also expand a 230-kilovolt substation, install a 300-kilometer long,
high speed fiber optic telecommunication link, and build an auxiliary power
feeder and associated equipment.


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ABB (www.abb.com) is a leader in power and automation technologies that enable
utility and industry customers to improve performance while lowering
environmental impact. The ABB Group of companies operates in around 100
countries and employs about 135,000 people.


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