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ABB Announces Price Increase

Resulting from Continued Cost Inflation and Constrained Supply

Raleigh, July 14, 2006 -- ABB, the leading power and automation technology group, said today that it will increase prices on power and distribution transformers by 18 to 32% based on ratings due to continuing commodity cost increases and market demands for its products. The increase applies to products from ABB plants as well as Power Partners, Inc. in Athens, GA. Upward pressure on commodity prices as well as unprecedented market demand for all classes of transformers is expected to continue throughout 2007.

“Our discussions with the commodity suppliers indicate no change in the upward trend of prices. This pressure combined with the need to expand our capabilities to accommodate our customer transformer needs has necessitated that we increase the prices for our products”, explains Thomas Lazarz, Head of ABB’s Transformer Business in the Americas.

The price increase is immediate for all quotations. Alliance customers will be contacted to review the impact on an individual basis.

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 105,000 people.