ABB acquires New Zealand business to expand power electronics portfolio

Vectek’s innovative technology helps improve power quality for industry

Zurich, Switzerland, May 5, 2008 - ABB, the leading power and automation technology group, has acquired the business of Vectek Electronics, a New Zealand company with innovative technology that improves the quality of the power supply in industrial installations, which helps to reduce downtime and increase productivity.

The business has 73 employees as well as a research and development center in the town of Napier, and will operate as part of ABB's Automation Products division. Terms of the transaction are not being disclosed.

"Vectek is an ideal addition to our portfolio of technologies that help customers increase power reliability, productivity and energy efficiency," said Tom Sjoekvist, head of the Automation Products division. "ABB's global scope will enable customers on every continent to benefit from this new technology."

Modern electricity networks, while very secure from blackouts, suffer from variations in power quality that can result in very costly production shutdowns and variations in the quality of goods produced in industrial plants. Vectek's high-power electronic converters use Active Voltage Conditioning (AVC) technology to mitigate the effect of voltage surges and sags, creating a more stable and continuous supply.

The product is designed for industrial, commercial and marine applications, and has already been successfully introduced in the U.S. and in a number of Asian markets. ABB's new product unit will be managed by John Penny, formerly chief executive of Vectek.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB group of companies operates in around 100 countries and employs more than 110,000 people.

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