ABB Moves Ahead On Tyumen Oil Project Following U.S.-Exim Loan Guarantee Approval.

Business Editors

NORWALK, Conn.--(BUSINESS WIRE)--April 6, 2000

ABB said today it will move ahead with a modernization project for Russia's Tyumen Oil Company (TNK) in the wake of a decision by the U.S. Export-Import (Exim) Bank to approve a $500 million loan guarantee.

The global technology group ABB, through its ABB Lummus Global subsidiary, will use $198 million in Exim loan guarantees to modernize Tyumen's Ryazan Refinery, significantly increasing the yield of valuable transportation fuels and making it one of the most efficient and profitable refineries in Russia.

Stephen M. Solomon, president and CEO of ABB Lummus Global, said: "I am very happy that the program to upgrade and modernize Tyumen Oil's Ryazan Refinery will move ahead based on the loan guarantees just approved by the U.S. Exim Bank. This project will significantly increase the refinery's yield of high value, high purity transportation fuels which will specifically serve Tyumen Oil's objective of increasing the number of its gasoline stations from 600 to 1,000, and capturing 20 percent of Moscow's gasoline market. In addition to the significant impact on Tyumen Oil and the Russian economy, the Exim loan guarantees will support hundreds of jobs at ABB Lummus Global and will retain or create thousands of other jobs among many U.S. suppliers for this project."

Simon Kukes, president and CEO of Tyumen Oil Company, added: "TNK looks forward to working with ABB Lummus Global on the Ryazan project. ABB's effort to modernize Ryazan will result in it becoming one of the best refineries in Russia."

This is the third major project that will be implemented by ABB Lummus Global under U.S. Exim guarantees sponsored by the US-Russia Oil and Gas Framework Agreement.

ABB's worldwide oil, gas and petrochemicals business activities include the companies ABB Lummus Global, ABB Offshore Systems, ABB Soimi and ABB Vetco Gray. The business focuses on the development and supply of offshore production installations, refineries and petrochemical plants worldwide.

ABB, with U.S. headquarters at ABB Inc. in Norwalk, Conn., serves customers in automation; power transmission and distribution; oil, gas and petrochemicals; building technologies; and financial services. ABB's U.S. operations employ over 16,000 people at manufacturing and other facilities in 40 states http://www.abb.com/us.

Worldwide, ABB Group reported revenues of $25 billion in 1999. With novel IT applications, tailored software solutions, growing eBusiness and a fast expanding knowledge and service base, ABB is building links to the new economy. The Group employs about 165,000 people in more than 100 countries.