ABB sets up generator joint venture in China

Beijing, October 31, 2006 - ABB, the leading power and automation technology group, announced today that it has signed a contract with Tellhow Sci-Tech Ltd. to set up a new joint venture- ABB Tellhow Generators Ltd. for the production, sales and servicing of advanced and reliable low voltage generators in the world wide market.

"We feel very happy that we could cooperate with first-class Chinese high-tech company," said Peter Leupp, chairman and president of ABB in China during the contract signing ceremony. "I strongly believe that we can contribute to China achieving its goal to strengthen its position as a leading industrialization nation in the coming years. This investment allows us to play an important role in the dynamic Chinese market as well in the whole world."

Under terms of the contract, ABB and Tellhow are investing around $10 million in setting up the new joint venture in Nanchang. Building upon the world leading technology, the new joint venture will produce Low-Voltage generators for ships and auxiliary power emergency generator sets. The joint venture combines both parties' sales and marketing experience in both domestic and international market, technology know how, sales network and customer serving experience. The new joint venture is scheduled to start operating on January 1, 2007.

By joining forces under the JV contract, ABB and Tellhow aim to further strengthen their position as a supplier of generators to the Chinese and world wide market. Prior to the signing, ABB had already developed a strong position as a supplier of generators for marine auxiliary gen sets, while Tellhow was the dominant domestic supplier of generators in this market. Tellhow is a high-tech enterprise set up and developed in Nanchang National High-tech Development Zone with the support of both Jiangxi Province and Tsinghua University. It has been ABB's licensee for low voltage generators in China since 2004.

Mr. Huang Daifang, president of Tellhow Sci-Tech Ltd., said: "I believe that based on our successful cooperation in the past and mighty support from ABB brand, the new joint venture will be win-win partnership for both parties."

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 107,000 people. ABB has a full range of business activities in China, including manufacturing, R&D, sales and service, with 10,000 employees, 26 joint ventures and wholly owned companies, and an extensive sales and service network across 30 cities. To know more about ABB, visit www.abb.com.cn.