ABB Signs Letter of Intent on $650-Million Brazil Ethylene Complex.

Business Editors

ZURICH, Switzerland--(BUSINESS WIRE)--Jan. 27, 2000

ABB, the global technology group, confirmed today it is part of a consortium that has signed a Letter of Intent to develop a greenfield gas chemical complex near Rio de Janeiro, Brazil. The agreement was signed with Consorcio Rio Eteno e Rio Polimeros Ltda. The project has a value to ABB of about US$ 650 million. ABB expects to book the order in the next few months, pending completion of financing, which is currently at an advanced stage.

The agreement covers the design and construction of ethylene and polyethylene facilities using proprietary ABB process technologies. The plant is scheduled to enter commercial operation at the end of 2003.

Consorcio Rio Eteno e Rio Polimeros Ltda. is owned by Brazilian petrochemicals groups Suzano and Unipar, as well as state oil company Petrobras and BNDES development bank.

ABB (http://www.abb.com) is a global technology company serving customers in power transmission and distribution; automation; oil, gas, and petrochemicals; industrial products and contracting; and in financial services. Power generation customers are served by the joint venture ABB ALSTOM POWER. The ABB Group employs about 170,000 people in more than 100 countries.