Elsag Bailey Forms 10 Year Automation Alliance With Hemlock Semiconductor.

WICKLIFFE, Ohio--(BUSINESS WIRE)--Oct. 8, 1998--Elsag Bailey Process Automation N.V. (NYSE:EBY) announced today it has formed a strategic alliance for the supply of process automation technologies to Hemlock Semiconductor Corporation. Implemented through Bailey Controls Company (USA), the agreement names Elsag Bailey as the preferred supplier of automation technologies to Hemlock Semiconductor while establishing a forum for inter-company cooperation to develop advanced automation solutions aimed at improving HSC's competitive advantages in its manufacturing operations.

Under the alliance, Elsag Bailey will supply process automation systems as required by Hemlock Semiconductor's production facilities over the next ten years. Each company has assigned a dedicated Alliance Manager to lead a joint Alliance Team in identifying and implementing automation initiatives aimed at improving HSC's bottom line. A steering committee composed of management personnel from both companies will monitor the effectiveness of the alliance and maintain the focus on achieving the alliance objectives.

Dr. Donald B. Anthony, Bailey President and Chief Operating Officer, announced the agreement, stating, "This alliance represents the culmination of many years of progress and hard work by both companies in the field of process automation. We are gratified by the confidence which Hemlock Semiconductor has shown in Elsag Bailey technologies, and we are committed to working together toward new levels of automation performance."

Mr. Donald E. Pfuehler, Hemlock Semiconductor President and Chief Executive Officer, characterized his company's expectations, stating, "I believe there are significant benefits to be derived by both companies from this alliance. The challenging and competitive nature of our business requires an exceptional focus on improving efficiency and reducing costs. We look forward to working with Elsag Bailey to leverage their demonstrated expertise in this regard."

Hemlock Semiconductor Corporation is the world's largest supplier of high purity polycrystalline silicon and related products used in the manufacture of semiconductors, computer chips, memory products, etc.

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].