BALDOR PROFIT SHARING AND SAVINGS PLAN ABB's OFFER TO PURCHASE BALDOR STOCK — FROM THE BENEFITS DEPARTMENT —Baldor Electric Co • December 8th, 2010 • Motors & generators
On November 29, 2010 Baldor and ABB entered into an Agreement and Plan of Merger. This agreement affects Baldor Stock held in the Baldor Profit Sharing and Savings Plan (Plan). This is the first of several notices that address this subject. The information is based on the latest information we have and may change. Please pay attention to future notices.
ABB Letterhead]Baldor Electric Co • December 8th, 2010 • Motors & generators • New York
ABB Ltd. (together with its affiliates, "ABB") will invest substantial time and resources and incur substantial expenses in negotiating and drafting any documentation related to a possible business combination (the "Transaction") involving Baldor Electric Company ("Baldor"). To induce ABB to incur such expenses and pursue the Transaction, by the execution and delivery of this exclusivity agreement (the "Agreement") and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and agreed, Baldor covenants and agrees with ABB as follows:
QuickLinks -- Click here to rapidly navigate through this documentBaldor Electric Co • December 8th, 2010 • Motors & generators
We are pleased to inform you that, pursuant to the Agreement and Plan of Merger, dated November 29, 2010 (the "Merger Agreement"), among Baldor Electric Company ("Baldor"), ABB Ltd ("ABB"), and Brock Acquisition Corporation ("Purchaser"), an indirect wholly-owned subsidiary of ABB, Purchaser has commenced a tender offer to acquire all outstanding shares of Baldor's common stock (the "Offer"). The Offer is being made on terms and conditions set forth in an Offer to Purchase, dated December 8, 2010, and the accompanying Letter of Transmittal (together, as each may be amended, the "Offer Materials").
QuickLinks -- Click here to rapidly navigate through this documentBaldor Electric Co • December 8th, 2010 • Motors & generators
This letter refers to that agreement, dated January 21, 2010 (the "Agreement"), between ABB Ltd ("ABB") and Baldor Electric Company ("Baldor"), under which Baldor agreed to provide certain Confidential Information (as defined in the Agreement) to ABB.
