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Sulzer Sells Turbomachinery Business to MAN GHH BORSIG

20 December 2000

Sulzer Sells Turbomachinery Business to MAN GHH BORSIG

       First Divestiture Within the Framework of the Focusing Strategy

    WINTERTHUR, Switzerland, Dec. 20 The MAN Turbomaschinen AG
GHH BORSIG, a subsidiary of the commercial vehicle and mechanical engineering
company MAN, in Oberhausen (DE), and Sulzer Ltd, Winterthur (CH), have signed
an agreement for selling the complete business of Sulzer Turbo to MAN GHH
BORSIG, subject to approval of the regulatory and antitrust authorities.  The
purchaser is acquiring the management, all employees and all sites of Sulzer
Turbo.
    MAN Turbomaschinen AG GHH BORSIG had sales of EUR 360 million with
approximately 1700 employees in 1999.  The complete MAN Group employs
approximately 76 000 people world-wide, who achieve sales of approx.
EUR 15 billion.  Sulzer Turbo has sales of approximately EUR 200 million
(CHF 300 million) with approximately 1000 employees.
    On September 18, 2000, the Sulzer Group announced that it was going to
divest different business units of its industrial sector within the framework
of a focusing strategy.  These were to be sold to partners who had strategic
goals.  This goal has been achieved in the case of Sulzer Turbo.  Following
the acquisition, the new company will belong to the group of global market
leaders for thermal turbomachines.  The price of the transaction was concluded
tacitly, but is within the range of expectations.  Additionally, the
conditions for a socially acceptable divestiture have been fulfilled.  With
this, Sulzer has completed the first step in its announced focusing program
successfully.

    International Presence Strengthened
    The new company will be composed of the three legally independent core
companies in Germany, Switzerland and Italy with a world-wide sales and
service network.  The management of this group of companies will be at MAN
Turbomaschinen AG GHH BORSIG, Oberhausen.  The new company has a complete
range of turbomachines for the oil and gas industry, the processing industry
and associated energy generation.  The merging of the sales and service
organizations from MAN Turbomaschinen and Sulzer Turbo will strengthen the
overall presence in international markets substantially, especially the
position in the USA.
    The linking of the activities and the joining of the strengths of the
two companies will further improve their technological and economic
competitiveness.  This applies especially in view of the increasing
competitive global market for turbines and compressors.
    Sulzer Turbo manufactures turbocompressors for various applications,
mainly for the oil and gas industries, the chemical industry and for air
separation.  The strengths of Sulzer Turbo include research and development as
well as modern production processes among other things.  The company has a
leading position with its emission-free, high-pressure compressors with
magnetic bearings for the oil and gas production sector.  Sulzer Turbo also
has a comprehensive range of customer services for turbocompressors, gas and
steam turbines.  Sulzer Turbo employs a total of approximately 1000 people,
about 600 of them (incl. approx. 50 trainees) in Zurich (Switzerland), 200 in
Schio (Italy), 50 in Ravensburg (Germany), 70 in Johannesburg (South Africa),
40 in Farnborough (Great Britain), 20 in Houston (USA) and 15 in Mantes
(France).