Elsag Bailey To Outsource Information Technology Services in Germany.

FRANKFURT, Germany--(BUSINESS WIRE)--June 16, 1998--Elsag Bailey Process Automation N.V. (NYSE:EBY) announced today it has reached agreement to outsource all internal information technology services for its operations in Germany, with plans to extend the outsourcing to other European locations. Under a seven-year contract, CSC Ploenzke AG -- a unit of Computer Sciences Corporation, El Segundo, California -- will handle the operation and administration of Elsag Bailey's computing centers, network (LAN/WAN) infrastructure, software services, application development, and help desk functions. About 90 Elsag Bailey employees affected by the outsourcing will be offered employment with CSC Ploenzke.

The new information technology services will support Elsag Bailey facilities across Germany, operating primarily under the Hartmann & Braun and Bailey-Fischer & Porter names. Included in the outsourcing contract will be upgrading of Elsag Bailey commercial and logistics systems in the region to SAP/R3software. Implementation in Germany will occur over a period of 18 months, accompanied by introduction of SAP/R3 systems to Elsag Bailey facilities in Belgium, the Netherlands, Austria, and Switzerland. SAP/R3, utilized in more than 15,000 sites worldwide, is a client/server computing and software structure designed to link corporate mainframe systems, personal computers, and processing logic via an integrated suite of business software applications.

Dr. Wolf Klinz, Elsag Bailey Group Vice President for Central and Eastern Europe, commented on the outsourcing contract, stating, "This action is part of Elsag Bailey's strategic plan to more closely focus on core business activities, complemented by partnerships which support our goals for a more efficient infrastructure. We expect this alliance to help optimize the overall delivery of information technology services, while accelerating the benefits of advanced computing tools as our operations in this region are drawn closer together by the European Union."

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].

    CONTACT:  Elsag Bailey Process Automation
               Christopher M. Farage, Ph.D., 440/585-8675