ABB to deliver systems, equipment to North Korean nuclear plants; US$ 200 million in orders awarded under multi-government framework agreement.

Business Editors

ZURICH, Switzerland--(BUSINESS WIRE)--January 20, 2000

ABB, the global technology group, said today it has signed contracts to deliver equipment and services for two nuclear power stations at Kumho, on the east coast of North Korea. The contracts, with a value of US$ 200 million, were awarded by HANJUNG (Korea Heavy Industries and Construction Co. Ltd.) and KOPEC (Korea Power Engineering Corp.).

The two nuclear plants are being supplied to North Korea under a Supply Agreement with KEDO (Korean Energy Peninsula Development Organization), a consortium formed in 1995 by the governments of the United States, Japan, South Korea and the European Union. KEDO is to provide the stations under the Agreed Framework signed by the U.S. and North Korea in 1994.

Under the terms of the contracts, ABB will provide engineering, design and components for the two 1,000-megawatt (Mwe) light water nuclear steam supply systems. The systems are an advanced version of ABB's System 80(R) design, which is being employed under license in eight reactors in South Korea. The two power stations are scheduled to begin commercial operation by 2007 and 2008, respectively.

ABB and BNFL announced in late December of 1999 that British-based BNFL will acquire ABB's nuclear business, pending regulatory approval.

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.