Elsag Bailey Process Automation N.V. announces completion of the acquisition of the Hartmann & Braun Group of companies.

DUSSELDORF, Germany--(BUSINESS WIRE)--Jan. 3, 1996--Elsag Bailey Process Automation N.V. (NYSE:EBY) announced today that it completed the acquisition of the Hartmann & Braun Group of companies on January 2, 1996 for a total transaction value of approximately DM 1 Billion (US $696.1 Million), inclusive of debt. The acquisition has been financed through a $207 Million offering of 5.5% Convertible Trust Originated Preferred Securities (TOPrS(SM)) made through Merrill Lynch and a placement with majority shareholder Finmeccanica of $80 Million of TOPrS and $120 Million of the Company's common shares and the balance was funded through a new credit agreement arranged by Bank of America and Merrill Lynch, which also replaces Bank of America's current credit arrangements with the Company.

"We are pleased to have received the necessary regulatory approvals both in Europe and the United States and to have completed this transaction in such an expeditious manner," said Vincenzo Cannatelli, Chief Executive Officer. "This acquisition combines the prestigious brand names of Hartmann & Braun and Elsag Bailey to create one of the broadest based portfolios of products and services in the process control industry. This combination increases my optimism for the future prospects of our Company, its customers, its employees, and its shareholders."

Hartmann & Braun, based in Frankfurt, Germany, is a leading producer of systems and instrumentation for the automation of energy production and other industrial processes in Germany and Europe. The company is also a world leader in gas analysis technologies. The Hartmann & Braun Group of companies had 1994 revenues at DM 1.3 Billion (US $905 Million).

Elsag Bailey Process Automation N.V., incorporated in the Netherlands, is a leading producer of distributed control systems, instrumentation products, and professional services for the process industries. The firm's technologies are sold worldwide for the automation of varied processes in the electric power, chemical and pharmaceutical, oil and gas, pulp and paper, and other industries. Elsag Bailey Process Automation had 1994 pro-forma revenues of approximately $800 million, and reported revenues for the first nine months of 1995 totalling $619 million.

CONTACT: Elsag Bailey Process Automation N.V.

William P. Donnelly, Group Controller, 216/585-8355