Flow International to Acquire ABB Pressure Systems of Sweden

16 March 1999
Flow International to Acquire ABB Pressure Systems of Sweden
    KENT, Wash. and VASTERAS, Sweden, March 15 -- Flow
International Corporation and Asea Brown Boveri AB (ABB)
(Stockholm: ABBa and Nasdaq: ABBBY), today announced Flow has reached an
agreement in principal to acquire ABB Pressure Systems AB.  ABB Pressure
Systems, (Pressure Systems) based in Vasteras, Sweden, is a wholly-owned
subsidiary of ABB AB of Stockholm, Sweden.  Pressure Systems is the leading
supplier of large, bulk ultrahigh-pressure systems to the food industry and
the world leader in isostatic press systems for the automotive and aerospace
market.
    "This acquisition establishes Flow as the only supplier of both bulk and
pumpable ultrahigh-pressure systems in the world and brings additional
technological strength to our automotive and aerospace solutions," said
Ronald W. Tarrant, Chairman, President and CEO of Flow.  "The Pressure Systems
product line complements our Fresher Under Pressure(TM) technology, which
kills pathogens in pumpable food, by adding batch purification equipment that
is effective on bulk foods.  Pressure Systems' units are based on wire-wound
vessels that can withstand pressures over 100,000 pounds per square inch and
can process large batches of food at once.  Pressure Systems introduced its
food purification process several years ago, and its systems are currently
used in commercial operations."
    Flow also will acquire Pressure Systems' isostatic press business, which
uses heat and pressure to form parts primarily for the automotive and
aerospace industries.  Presently there are several hundred Pressure Systems
isostatic presses in production worldwide.  "We are delighted to add this
technology to our capabilities and believe that the isostatic press will be a
strong compliment to the other products and services we offer to our
automotive and aerospace customers," Tarrant said.
    "Based on current backlog and recent growth patterns, Pressure Systems is
expected to add significantly to our revenues in fiscal 2000, which begins
May 1, 1999," stated Steve Reichenbach, Flow's Chief Financial Officer.  "In
addition, we expect that the acquisition will be accretive to earnings in
fiscal 2000.  Pressure Systems currently has a strong backlog for fiscal
2001."
    "Flow is the ideal purchaser of this technology," stated Anders Narvinger,
President and CEO of ABB AB.  "The product fit is exceptionally complementary,
and strategically, Flow will provide market strength.  In addition, we believe
the quality of Flow's management and the company culture will be a good fit
for our employees and customers.  While the ultrahigh-pressure business has
been profitable for us, it is not a part of our core business competencies and
we are very pleased to have found such a good fit for this division."
    Flow International Corporation is the world leader in the development and
manufacture of ultrahigh-pressure waterjet technology for advanced commercial
application, and a leading provider of robotics and assembly equipment.  Flow
provides technologically advanced, environmentally-sound solutions to the
manufacturing and surface preparation cleaning markets.
    The ABB Group ( http://www.abb.com ) is a global engineering and
technology company serving customers in power generation, transmission, and
distribution; automation; oil, gas, and petrochemicals; industrial products
and contracting; and financial services.
    Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995:  Statements in this news release looking forward in time involve
risks and uncertainties, including risks associated with acquisitions, product
demand, market acceptance risk, product introduction delays, international
regulatory changes, and other risk factors detailed the Company's Securities
and Exchange Commission filings.
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