U.S. regulators approve ABB ALSTOM POWER joint company

Zurich, Switzerland, June 22, 1999 – U.S. competition regulators have given the green light to the proposed 50-50 joint company in power generation created by ABB and ALSTOM, the two companies announced today.

The new Brussels-based group – called ABB ALSTOM POWER – received European Commission approval at the beginning of June. ABB ALSTOM POWER is now clear to begin operations. It will employ some 58,000 people in more than 100 countries. Pro-forma revenues in 1998 were the equivalent of about US$ 11 billion.

As the partners announced in March, ABB ALSTOM POWER is to comprise all of ABB’s Power Generation Segment, excluding its nuclear activities and its distributed power business. The new company will also comprise all of ALSTOM’s Energy Sector activities, excluding their heavy duty gas turbine business, which ALSTOM is divesting.

To compensate for the difference in the size of the contributed businesses, ABB will receive a cash compensation from ALSTOM of US$ 1.5 billion.

ABB <http://www.abb.com> is a globalized technology and engineering company serving customers in power generation, transmission, and distribution; automation; oil, gas, and petrochemicals; industrial products and contracting; and financial services. ABB employs about 200,000 people in more than 100 countries. (End)

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    • John Fox
      ABB Corporate Communications, Zurich
      Tel: +41 1 317 7371
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