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ABB Announces Price Increase

Transformers

Raleigh, July 9, 2007 -- ABB, the leading power and automation technology group, said today that it will increase prices (in North America) on power and distribution transformers by 10 to 20% 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 costs for commodities used in the production of our transformers continue to rise although not at the levels we saw last year. Our discussions with our suppliers have confirmed industry forecasts that positive pressure on commodity prices will continue in the foreseeable future.", explains Thomas Lazarz, Head of ABB’s Transformer Business in the Americas.

The price increase is immediate for all quotations for shipment after January 1, 2008. 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.