ABB increases ANSI Instrument Transformer pricing

In this unique time of continued commodity cost escalation and unprecedented demand for instrument transformer products, ABB is actively working to minimize the impact on our customers by striving to provide the shortest lead times, the highest quality, and the best value in the industry.

Unfortunately, as communicated in previous announcements, the cost escalation of key raw materials remains an ongoing and serious concern. Even with ABB's significant global purchasing power, we have now confirmed that the average cost of electrical steel as of July 2008 has increased 140% over the 2004 baseline (a 20% increase over the November 2007 cost). The cost of other key components of instrument transformers, such as copper, aluminum, carbon steel, thermoplastic rubber, and other packaging materials has also increased in 2008.

In order to continue providing world-class customer service during this period of increased demand, ABB recently expanded the Pinetops plant capacity. Significant capital investments were made, including additional manufacturing equipment and new floor layouts. These changes have already shown positive results in terms of lead time reduction over the last few months.

The following price increases will become effective on all quotes beginning August 18, 2008:

• Low Voltage Metering Transformers: 7%
• Low Voltage Plastic Case Transformers: 10%
• Medium Voltage Instrument Transformers: 15%
• Bushing Current Transformers: 15%

Customers with blanket agreements will be contacted to review the price impact on an individual basis.

ABB will continue to monitor this unique market trend and work to provide customers with the highest value. Please contact your local ABB representative with any questions.

Marco Machi,
Sales and Marketing Manager
ABB Inc.
Pinetops, North Carolina