Acquisition

ABB Ld
15 November 1999


ABB Acquires Valve and Wellhead Manufacturer in Argentina

Ongoing privatization in Latin America oil and gas sector brings opportunities
for growth

Zurich, Switzerland, November 15, 1999 - ABB, the global technology group, said
today it has agreed to acquire Danco Talleres Metalurgicos S.A. (DANCO) a
leading oil and gas equipment manufacturer in Argentina.  DANCO employs about 30
people and is based in Buenos Aires.  The terms of the acquisition were not
disclosed.  The sale is subject to regulatory approvals.

DANCO manufactures low pressure valves and wellheads for use in oil and gas
wells, with some 20 percent of its production exported to other South American
countries.  ABB said the acquisition, to be integrated into its ABB Vetco Gray
unit, broadens its product range and opens new market opportunities for other
ABB products in the growing Argentina oil and gas market, the second largest in
Latin America in terms of wells drilled.  ABB intends to market the company's
products worldwide.

Ongoing privatization in the Latin America oil and gas sector has created an
attractive environment for investment and ABB intends to invest in upgrading
DANCO's production technology.  ABB said the acquisition will position the
company to tap growth opportunities in other parts of the region as well.

'Part of our expansion strategy is to build up our presence in sectors with
superior growth potential, and where we can realize synergies with other parts
of our business' said ABB President and CEO, Goran Lindahl.  'This acquisition
fits well with that approach.  This is a solid company that serves as a platform
for marketing other ABB products in an important growth market.'

ABB  is a globalized technology and engineering company
serving customers in power transmission and distribution; automation; oil, gas,
and petrochemical; industrial products and contracting; and in financial
services.  Power generation customers are served by the joint venture ABB ALSTOM
POWER.  The ABB Group employs about 170,000 people in more than 100 countries. 

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