Elsag Bailey Awarded $73 Million Automation Contract in Saudi Arabia.

GENOA, Italy--(BUSINESS WIRE)--Sept. 22, 1998--Elsag Bailey Process Automation N.V. (NYSE:EBY) announced today it has received a contract valued at nearly $73 million to supply the Unified Control System, Load Dispatch Center, and Management Information System for the Yanpet Infrastructure Expansion Project in Yanbu, Saudi Arabia. The contract, awarded to the company's Italian subsidiary, Elsag Bailey Hartmann & Braun S.p.A., in consortium with Saudi Arabian Kent, covers comprehensive modernization and expansion of one of the most extensive petrochemical facilities in the Kingdom of Saudi Arabia.

Mr. Vincenzo Cannatelli, Elsag Bailey Managing Director and Chief Executive Officer, commented on the new project, stating, "We are extremely gratified by the confidence shown in our company through the award of this major contract. Considering the difficult economic conditions in certain parts of the world, and the maturing of the sale process involving our company, we are pleased to see that key customers continue to view Elsag Bailey as a preferred partner in process automation."

The Yanpet Infrastructure Expansion Project encompasses modernization and improvement of the automation systems for power generation and distribution, plus the desalination plants serving the Yanbu Petrochemical Complex. The project includes three power plants (160MW each), nine desalination units, nine gas turbine generator units, and five heat recovery steam generators.

Elsag Bailey will serve as prime contractor for the automation improvements, providing a full range of products including distributed control systems, SCADA systems, management information systems, process instrumentation and analytical measurement products. Elsag Bailey will also provide a variety of professional services including project management, installation, commissioning, training, and logistics support. Project implementation is expected to span a period of 24 months, with shipments beginning in the first quarter of 1999 and project completion scheduled for mid 2000.

Mr. Antonio Cavo, Elsag Bailey Group Executive Vice President, announced the project, stating, "This contract continues a very significant series of recent successes for our company in the Middle East. We have invested carefully in our strategic presence in the region, and we have been rewarded with a number of key projects across the chemical, oil and gas, and electric power sectors. We are committed to blending this local presence with our substantial global resources, providing world-class service to our customers in the area."

The Yanpet project follows a long and successful relationship between Elsag Bailey and the Royal Commission of Saudi Arabia. Past projects have been implemented with the support of multiple Elsag Bailey units, including group companies in Italy, Japan, and the United States. Mr. Franco De Benedetti, Managing Director for the company's Italian unit, commented on the most recent contract, stating, "We are proud to play a critical role in this project -- the largest ever recorded by our Italian operations. International diversification is very important to us, complementing our long-standing expertise in the energy industries within Italy, and we are gratified by the increased credibility which this project brings to our efforts."

One of the world's leading process automation companies, Elsag Bailey Process Automation N.V., incorporated in the Netherlands, has grown its revenues to more than $1.5 billion by aggressively expanding its global markets and technologies. The company employs some 11,000 employees in over 30 countries. Elsag Bailey's computer and electrical products -- control systems, instrumentation products, and analytical devices -- keep its customers on the cutting edge of productivity. Elsag Bailey's global customers are among the leading names in the process industries including electric utilities, oil and gas, chemicals and pharmaceuticals, pulp and paper, water and wastewater, metals and ceramics, and other industrial companies.

For copies of additional press releases or quarterly reports, call Elsag Bailey's Fax-on-Demand service at 1-888-329-2311, or visit the Company's web site at www.ebpa.com. Requests for information can also be made via e-mail at [e-mail].