1998 Press Releases-05

Yokogawa Electric Corporation, a leader in distributed control systems and field instruments headquartered in Tokyo, Japan, announces the acquisition of TechComm Simulation Division of Utility Service Corporation, a power plant simulator training division. Yokogawa Electric Corporation purchased the assets of TechComm Simulation Division of Utility Service Corporation Limited to enhance its power system business. The new wholly owned subsidiary of Yokogawa began operations effective October 1, 1998 as TechComm Simulation Pty Limited.

Utility Service Corporation Limited, an Australian company providing facilities and services to the water, gas, railroad and other transportation, electric power, and utility industries in the Australian and Asian markets,has an enviable 18-year record in the development, production, marketing and engineering of power plant training simulation systems. Other assets include the service business of operational training programs for operators who actually use the simulation systems. Based in Sydney, Australia TechComm Simulation Division's 1997 annual sales were approximately 400 million yen with 27 employees.

Acquisition Significant to Yokogawa's Power Systems Business

Substantial growth is expected in the electric power market driven by rapid movement toward operation of in-house power plants and sustained investment in power generation facilities. Recent demands for safety and environmental protection have created a need for training simulators and operational training services tailored to power plant operators. This makes training simulators compulsory for in-house power plant systems.

Yokogawa integrated control system for power plants, the CENTUM PS 3000, partnered with Enterprise Technology Solutions (ETS), a business concept in the power plant market, supports multiple business strategies to enhance Yokogawa's system business for power plants. The recent acquisition of TechComm Simulation PTY Limited allows Yokogawa to actively pursue business development by differentiating itself from competitors in the market for electric power systems.