1st Quarter Results

ABB Ltd
26 April 2007


Q1 net income up by 163 percent

   • Continued strong demand for reliable power and industrial efficiency
   • Record EBIT and EBIT margin (13.2%) on volume growth and operational
    improvements
   • Cash from operations above $300 million
   • Oil, gas and petrochemicals business moved to discontinued operations

Zurich, Switzerland, April 26, 2007 - ABB's first-quarter net income rose 163
percent to $537 million from $204 million in the same period of 2006, driven
primarily by continued strong market demand and further operational
improvements.

Earnings before interest and taxes (EBIT) increased 67 percent from a year
earlier, to $822 million. The EBIT margin, or EBIT as a percentage of revenues,
increased to a record 13.2 percent from 9.6 percent.

Orders rose 26 percent (20 percent in local currencies), spurred by demand for
reliable electricity supplies in both mature and emerging markets, as well as
global industrial demand for technologies to improve energy efficiency and
productivity. Revenues rose 21 percent (15 percent in local currencies) to $6.2
billion on both high product sales in the quarter and progress on executing the
strong order backlog. Not included in the revenue comparison is $237 million in
the first quarter of 2007 from the ABB Lummus Global business that was
reclassified to discontinued operations (Q1 2006: $208 million).

'Our operational improvements and global reach are paying off,' said Fred
Kindle, ABB President and Chief Executive Officer. 'We are positioned to capture
the strong worldwide demand for technologies to deliver reliable power, increase
productivity and save energy. All five divisions and every region, particularly
Europe, contributed to our strong start to the year.'


               ----------------------    --------    -------    -------------
                                            Q1 07     Q1 06 1)     Change
2007 Q1 key figures
----------------------                   --------    -------       -------------
$ millions unless otherwise indicated                              US$    Local
----------------------                   --------    -------   --------- ------
Orders                                    8,639      6,859          26%     20%
----------------------                   --------    -------   ---------  ------
Order backlog (end March)                18,515     13,088          41%     34%
----------------------                   --------    -------   ---------  ------
Revenues                                  6,215      5,139          21%     15%
----------------------                   --------    -------   ---------  ------
EBIT                                        822        492          67%
----------------------                   --------    -------   ---------  ------
as % of revenues                           13.2%       9.6%
----------------------                   --------    -------   ---------  ------
Net income                                  537        204         163%
----------------------                   --------    -------   ---------  ------
as % of revenues                            8.6%       4.0%
----------------------                   --------    -------   ---------  ------
Basic net income per share ($)             0.25       0.10
----------------------                   --------    -------   ---------  ------
Cash flow from operating activities         303         39
----------------------                   --------    -------   ---------  ------
1)Adjusted to reflect the reclassification of activities to discontinued
operations


Summary of Q1 2007 results

Orders received and revenues

The strong order growth in the first quarter was led by continued demand for
improved power infrastructure across all regions. Orders in the Power Products
and Power Systems divisions grew 41 and 38 percent, respectively (local
currencies: 35 and 30 percent) during the quarter compared to the same period in
2006. Demand was strong for transformers and substations. Industrial markets
also remained robust in the first quarter, driven mainly by the metals and
marine sectors. This resulted in a 24-percent increase in orders (local
currencies: 16 percent) in the Automation Products division, especially for
energy-saving motors and drives. Order growth was modest (flat in local currencies) 
in Process Automation due to the timing of large order awards, primarily in the 
oil and gas sector. Orders in the Robotics division also increased, led by demand 
from general industry.

Regionally, orders in Europe rose 31 percent (20 percent in local currencies),
reflecting both power infrastructure investments and overall economic strength.
Order growth was strongest in Germany, Spain, Italy and Russia. Strong markets
in North and South America, especially in the power sector, resulted in a
25-percent increase in orders from the Americas (24 percent in local
currencies), led by the U.S. and Brazil. Orders in Asia grew 22 percent (18
percent in local currencies) and continued to benefit from rapid economic
development in China and India. High oil prices supported demand in the Middle
East and Africa where orders increased 16 percent (14 percent in local
currencies).

The volume of large orders (more than $15 million) rose 36 percent (32 percent
in local currencies) in the first quarter and base orders (less than $15
million) were up 25 percent (18 percent in local currencies). Large orders
represented 13 percent of total orders in the first quarter of 2007, slightly
higher than the first quarter of 2006 but below the exceptionally high levels
seen in the fourth quarter of 2006. The order backlog at the end of March was
$5.4 billion higher (41 percent in U.S. dollars and 34 percent in local
currencies) than at the end of the first quarter of 2006 and $2.6 billion higher
(up 16 percent in both U.S. dollars and local currencies) than at the end of
2006.

The 21-percent increase in revenues (15 percent in local currencies) is
primarily the result of strong product sales in the quarter as well as the
execution of orders from the backlog.

Earnings before interest and taxes

All divisions increased their EBIT and EBIT margins in the first quarter of
2007, mainly through higher volumes and capacity utilization, as well as
improved selection and execution of large projects. Other operational
improvements, including more efficient supply management and increasing
production and engineering capacity in lower cost countries, were further
factors in the EBIT and EBIT margin improvement. EBIT in the quarter also
benefited from a lower level of restructuring and other charges, such as those
related to the transformer consolidation program, compared to the same quarter
in 2006.


Discontinued operations

A small profit was recorded in the first quarter of 2007 in discontinued
operations. This includes income from the ABB Lummus Global oil, gas and
petrochemicals business, which was reclassified into discontinued operations
from Non-core activities. The reclassification reflects ABB's expectation to
sell the business. (Please refer to Appendix I for more detail on ABB Lummus
Global's first-quarter results.) The sale of ABB's Building Systems business in
Germany, announced in February of this year, was completed on April 12, 2007.
Discontinued operations in the first quarter of 2006 included an approximately
$90-million negative impact from the mark-to-market accounting treatment of ABB
shares held for the Combustion Engineering asbestos settlement.

Cash flow

Cash flow from operations improved significantly in the first quarter, mainly
reflecting earnings growth. Net working capital as a share of revenues increased
to 12.2 percent in the first quarter from 11.3 percent in the same quarter a
year ago, mainly the result of higher inventories to execute orders received in
recent quarters that have not yet flowed through to revenues, as well as higher
receivables.


Balance sheet

Cash and marketable securities increased, primarily the result of higher
cash-effective earnings. Following the conversion during the first quarter of 79
percent of the company's 1-billion Swiss franc convertible bonds maturing in
2010, total debt decreased by approximately $650 million and equity increased by
a similar amount. As the result of the bond conversion and the strong net income
in the quarter, ABB's gearing(1) at the end of March 2007 decreased to 26
percent from 34 percent at the end of 2006. Net cash(2) amounted to $2.3 billion
at the end of March 2007 compared to $1.5 billion at the end of the previous
quarter.

(1) The gearing ratio is calculated as total debt divided by the sum of total
debt and equity, including minority interest

(2) Net cash is calculated as the sum of cash and equivalents and marketable
securities and short-term investments, less total debt.

Credit rating increase

On April 23, 2007, Standard & Poor's raised ABB's long-term corporate credit
rating from BBB+ to A-, with a stable outlook. It was the third increase by
Standard & Poor's on ABB's credit rating since the beginning of 2006.

Divisional performance Q1 2007

Power Products division                     Q1 07     Q1 06 1)     Change
---------------------                    --------    -------   --------------
    
$ millions unless otherwise indicated                            US$     Local
---------------------                    --------    -------  -------- --------
Orders                                    3,257      2,310        41%       35%
---------------------                    --------    -------  --------  --------
Order backlog (end March)                 6,188      4,202        47%       40%
---------------------                    --------    -------  --------  --------
Revenues                                  2,060      1,463        41%       35%
---------------------                    --------    -------  --------  --------
EBIT                                        317        173        83%
---------------------                    --------    -------  --------  --------
as % of revenues                           15.4%      11.8%
---------------------                    --------    -------  --------  --------
Cash flow from operating activities          87         61
---------------------                    --------    -------  --------  --------
1) Adjusted to reflect the reclassification of activities to discontinued
operations

Order growth remained very strong in the first quarter. Both base and large
orders increased and orders were up in all businesses and regions. Transformer
orders grew strongest, driven by demand in the U.S., Brazil, Germany and Spain.
Large orders from eastern Europe and the Middle East for switchgear used in
high-voltage substations also contributed to the order growth.

Revenues grew significantly in all businesses on increased productivity, a
higher initial order backlog and price increases in some product areas to
compensate for higher raw material costs. There were no expenses in the first
quarter of 2007 related to the transformer consolidation program announced in
2005 (first quarter 2006: $17 million).

EBIT and EBIT margin rose, mainly reflecting the improved cost efficiency of
higher factory loadings, operational improvements and lower transformer
consolidation costs.

Power Systems division                      Q1 07      Q1 06       Change
---------------------                    --------    -------   --------------
$ millions unless otherwise indicated                            US$     Local
---------------------                    --------    -------  -------- --------
Orders                                    1,797      1,306        38%       30%
---------------------                    --------    -------  --------  --------
Order backlog (end March)                 6,357      4,417        44%       35%
---------------------                    --------    -------  --------  --------
Revenues                                  1,154      1,012        14%        8%
---------------------                    --------    -------  --------  --------
EBIT                                         80         48        67%
---------------------                    --------    -------  --------  --------
as % of revenues                            6.9%       4.7%
---------------------                    --------    -------  --------  --------
Cash flow from operating activities          17          4
---------------------                    --------    -------  --------  --------


Both base and large orders increased significantly in the first quarter compared
to the same quarter a year earlier. The substations and network management
businesses led the growth as electrical utilities continued to invest in
infrastructure upgrades. Orders were up strongly in Europe, the Americas and in
Asia, especially India. Orders also grew at a high single-digit pace in the
Middle East and Africa.

Revenue growth in the quarter reflected primarily the timing of project
execution from the order backlog. EBIT and EBIT margin increased on higher
revenues combined with improved project selection and execution and increased
capacity utilization.

Automation Products division               Q1 07       Q1 06       Change
--------------------                    --------   ---------   --------------
 $ millions unless otherwise indicated                            US$     Local
--------------------                    --------   ---------  -------- --------
Orders                                   2,411       1,944        24%       16%
--------------------                    --------   ---------  --------  --------
Order backlog (end March)                3,006       1,862        61%       51%
--------------------                    --------   ---------  --------  --------
Revenues                                 1,898       1,530        24%       16%
--------------------                    --------   ---------  --------  --------
EBIT                                       309         221        40%
--------------------                    --------   ---------  --------  --------
as % of revenues                          16.3%       14.4%
--------------------                    --------   ---------  --------  --------
Cash flow from operating activities         97         131
--------------------                    --------   ---------  --------  --------

Industrial markets continued to develop favorably in the first quarter, leading
to a further increase in demand. Orders were higher in all businesses and
regions. Among the larger orders booked in the quarter were traction converters
and motors for rail customers, medium-voltage drives for a metals customer and
high-power rectifiers for a smelter project in India.

Higher revenues followed the good order development during the quarter as well
as benefiting from the strong order backlog. Revenue growth and continued high
capacity utilization led to a further increase in EBIT and EBIT margin.

Process Automation division                Q1 07       Q1 06       Change
--------------------                    --------   ---------   --------------
 $ millions unless otherwise indicated                            US$     Local
--------------------                    --------   ---------  -------- --------
Orders                                   1,741       1,659         5%       (1%)
--------------------                    --------   ---------  --------  --------
Order backlog (end March)                4,348       3,118        39%       31%
--------------------                    --------   ---------  --------  --------
Revenues                                 1,383       1,235        12%        6%
--------------------                    --------   ---------  --------  --------
EBIT                                       139         118        18%
--------------------                    --------   ---------  --------  --------
as % of revenues                          10.1%        9.6%
--------------------                    --------   ---------  --------  --------
Cash flow from operating activities         83           4
--------------------                    --------   ---------  --------  --------

A decrease in large orders in the first quarter compared to the same quarter in
2006 was offset by a 13-percent increase in base orders (7 percent in local
currencies). Orders increased in the metals sector - especially in the steel
industry - and in marine. Demand from these two sectors was mainly driven by
Asia. Orders from the oil and gas sector were lower, primarily reflecting the
timing of project awards.

Revenue growth in the first quarter principally reflected progress made on the
execution of systems orders and higher product sales during the quarter. Higher
revenues and continued solid project execution contributed to the higher EBIT
and EBIT margin.

Robotics division                             Q1 07     Q1 06       Change
---------------------                      --------  --------   -------------
  $ millions unless otherwise indicated                            US$     Local
---------------------                      --------  --------  ------- --------
Orders                                        378       326       16%        9%
---------------------                      --------  --------  -------  --------
Order backlog (end March)                     516       496        4%       (2%)
---------------------                      --------  --------  -------  --------
Revenues                                      305       333       (8%)     (13%)
---------------------                      --------  --------  -------  --------
EBIT                                           15         1       --
---------------------                      --------  --------  -------  --------
as % of revenues                              4.9%      0.3%
---------------------                      --------  --------  -------  --------
Cash flow from (used in) operating             43       (67)
activities                                 --------  --------  -------  --------
---------------------

Orders rose in the quarter as higher demand from general industry, such as
packaging, consumer electronics and food processing, more than offset continued
weakness in the automotive sector.

Revenues declined in the first quarter as a result of the weak order backlog.
However, both EBIT and EBIT margin improved. This was a reflection of costs
incurred in the first quarter of last year to improve the division's operational
performance, the non-recurrence of costs related to a project, and the first
positive results from the operational improvement initiatives. Increased
revenues from general industry also contributed to the higher EBIT and EBIT
margin.

Non-core activities

Following the reclassification of ABB Lummus Global to discontinued operations,
Non-core activities now principally comprises ABB's Equity Ventures investment
portfolio and the Group's corporate real estate activities. In the first quarter
of 2007, Non-core activities generated EBIT of $35 million.

In February 2007, ABB announced the sale of its Equity Ventures investments in
the Jorf Lasfar (Morocco) and Neyveli (India) power plants. That transaction is
expected to close during the second quarter of 2007.

Outlook

The business environment for ABB during the remainder of 2007 is expected to
remain in line with the positive market situation seen in 2006 and the first
quarter of this year. Demand for power transmission and distribution
infrastructure is expected to continue on a high level in all regions. Equipment
replacement and improved network efficiency and reliability are forecast to be
the drivers of higher demand in Europe and North America.

Automation-related industrial investments are expected to continue in most
sectors. Overall, automation-related demand growth is expected to be strongest
in Asia and the Americas in 2007, with more modest growth in Europe.

In addition, ABB is well-positioned to benefit from increasing investments to
mitigate climate change with energy-efficient products and systems.

Order growth is expected to continue on a high level but to moderate somewhat
over the remainder of 2007, compared to the extraordinarily high order growth
rates experienced in 2006.


More information

The 2007 Q1 results press release and presentation slides are available from
April 26, 2007, on the ABB News Center at www.abb.com/news and on the Investor
Relations homepage at www.abb.com/investorrelations.


ABB will host a press conference today starting at 10:00 a.m. Central European
Time (CET). U.K. callers should dial [phone]. From Sweden, +46 8 5069
2105, and from the rest of Europe, [phone]. Lines will be open 15
minutes before the start of the conference. Audio playback of the call will
start one hour after the call ends and will be available for 72 hours: Playback
numbers: [phone] (U.K.), [phone] (rest of Europe) or +1 (1) 866
416 2558 (U.S./Canada). The code is 295, followed by the # key.

A conference call for analysts and investors is scheduled to begin today at 3:00
p.m. CET (9:00 a.m. EDT). Callers should dial [phone] (from the U.S./
Canada) or [phone] (Europe and the rest of the world). Callers are
requested to phone in 15 minutes before the start of the call. The audio
playback of the call will start one hour after the end of the call and be
available for two weeks. Playback numbers: [phone] (U.S./Canada) or +41
91 612 4330 (Europe and the rest of the world). The code is 683, followed by the
# key.

Investor calendar 2007
-----------------------------                                 ------------------
ABB Ltd Annual General Meeting                                       May 3, 2007
-----------------------------                                 ------------------
Q2 2007 results                                                    July 26, 2007
-----------------------------                                 ------------------
Q3 2007 results                                                    Oct. 25, 2007
-----------------------------                                 ------------------

ABB (www.abb.com) is a leader in power and automation technologies that enable
utility and industry customers to improve performance while lowering
environmental impact. The ABB Group of companies operates in around 100
countries and employs about 109,000 people.


Zurich, April 26, 2007

Fred Kindle, CEO


Important notice about forward-looking information

This press release includes forward-looking information and statements including
the section entitled 'Outlook,' as well as other statements concerning the
outlook for our business. These statements are based on current expectations,
estimates and projections about the factors that may affect our future
performance, including global economic conditions, the economic conditions of
the regions and industries that are major markets for ABB Ltd. These
expectations, estimates and projections are generally identifiable by statements
containing words such as 'expects,' 'believes,' 'estimates,' 'targets,' 'plans'
or similar expressions. However, there are many risks and uncertainties, many of
which are beyond our control, that could cause our actual results to differ
materially from the forward-looking information and statements made in this
press release and which could affect our ability to achieve any or all of our
stated targets. The important factors that could cause such differences include,
among others, the amount of revenues we are able to generate from backlog and
orders received, raw materials prices, market acceptance of new products and
services, changes in governmental regulations and costs associated with
compliance activities, interest rates, fluctuations in currency exchange rates
and such other factors as may be discussed from time to time in ABB Ltd's
filings with the U.S. Securities and Exchange Commission, including its Annual
Reports on Form 20-F. Although ABB Ltd believes that its expectations reflected
in any such forward-looking statement are based upon reasonable assumptions, it
can give no assurance that those expectations will be achieved.



ABB first-quarter (Q1) 2007 key figures
$ millions unless otherwise indicated          Q1 07    Q1 06 1)     Change
----------------------                      --------  --------   -------------

                                                                  US$      Local
   --------               ----------------  --------  --------  -------  -------
Orders      Group                            8,639     6,859       26%      20%
--------    ----------------                --------  --------  -------  -------
            Power Products                   3,257     2,310       41%      35%
   -------- ----------------                --------  --------  -------  -------
            Power Systems                    1,797     1,306       38%      30%
   -------- ----------------                --------  --------  -------  -------
            Automation Products              2,411     1,944       24%      16%
   -------- ----------------                --------  --------  -------  -------
            Process Automation               1,741     1,659        5%      (1%)
   -------- ----------------                --------  --------  -------  -------
            Robotics                           378       326       16%       9%
   -------- ----------------                --------  --------  -------  -------
            Non-core activities                101        93        9%       1%
   -------- ----------------                --------  --------  -------  -------
            Corporate (Inter-division       (1,046)     (779)
   -------- eliminations)                   --------  --------  -------  -------
            ----------------
Revenues    Group                            6,215     5,139       21%      15%
--------    ----------------                --------  --------  -------  -------
            Power Products                   2,060     1,463       41%      35%
   -------- ----------------                --------  --------  -------  -------
            Power Systems                    1,154     1,012       14%       8%
   -------- ----------------                --------  --------  -------  -------
            Automation Products              1,898     1,530       24%      16%
   -------- ----------------                --------  --------  -------  -------
            Process Automation               1,383     1,235       12%       6%
   -------- ----------------                --------  --------  -------  -------
            Robotics                           305       333       (8%)    (13%)
   -------- ----------------                --------  --------  -------  -------
            Non-core activities                 98        95        3%      (5%)
   -------- ----------------                --------  --------  -------  -------
            Corporate (Inter-division         (683)     (529)
   -------- eliminations)                   --------  --------  -------  -------
            ----------------
EBIT        Group                              822       492       67%
--------    ----------------                --------  --------  -------  -------
            Power Products                     317       173       83%
   -------- ----------------                --------  --------  -------  -------
            Power Systems                       80        48       67%
   -------- ----------------                --------  --------  -------  -------
            Automation Products                309       221       40%
   -------- ----------------                --------  --------  -------  -------
            Process Automation                 139       118       18%
   -------- ----------------                --------  --------  -------  -------
            Robotics                            15         1       --
   -------- ----------------                --------  --------  -------  -------
            Non-core activities                 35        12      192%
   -------- ----------------                --------  --------  -------  -------
            Corporate                          (73)      (81)
   -------- ----------------                --------  --------
EBIT margin Group                             13.2%      9.6%
(%)         ----------------                --------  --------
--------
            Power Products                    15.4%     11.8%
   -------- ----------------                --------  --------
            Power Systems                      6.9%      4.7%
   -------- ----------------                --------  --------
            Automation Products               16.3%     14.4%
   -------- ----------------                --------  --------
            Process Automation                10.1%      9.6%
   -------- ----------------                --------  --------
            Robotics                           4.9%      0.3%
   -------- ----------------                --------  --------
1) Adjusted to reflect the reclassification of activities to discontinued
operations



ABB Q1 2007 orders received and revenues by region
$ millions      Orders received     Change          Revenues         Change
------------      -----------     ----------      -----------      ----------
                Q1 07  Q1 06 1)   US$     Local    Q1 07  Q1 06 1) US$     Local
   ------------  ------  ------  ------  ------  -------  ------  ------  ------
Europe          4,004   3,053      31%     20%   2,926   2,283      28%     17%
------------     ------  ------  ------  ------  -------  ------  ------  ------
Americas        1,565   1,256      25%     24%   1,133   1,052       8%      8%
------------     ------  ------  ------  ------  -------  ------  ------  ------
Asia            2,143   1,751      22%     18%   1,501   1,321      14%      8%
------------     ------  ------  ------  ------  -------  ------  ------  ------
Middle East and
Africa            927     799      16%     14%     655     483      36%     34%
------------     ------  ------  ------  ------  -------  ------  ------  ------
Group total     8,639   6,859      26%     20%   6,215   5,139      21%     15%
------------     ------  ------  ------  ------  -------  ------  ------  ------
1) Adjusted to reflect the reclassification of activities to discontinued
operations







                                   Appendix I

ABB Lummus Global Q1 2007 key figures
                                            Q1 07       Q1 06       Change
                ---------------------    --------    --------   -------------
 $ millions unless otherwise indicated                            US$     Local
---------------------                    --------    --------  ------- --------
Orders                                      155         153       (1%)      (3%)
---------------------                    --------    --------  -------  --------
Revenues                                    237         208       14%        6%
---------------------                    --------    --------  -------  --------
EBIT                                          8          22      (64%)
---------------------                    --------    --------  -------  --------
as % of revenues                            3.4%       10.6%
---------------------                    --------    --------  -------  --------

ABB Lummus Global's EBIT in the first quarter of 2007 includes charges to cover
anticipated costs associated with the closing of a large project.


                                  Appendix II

Accounting pronouncements

In June 2006, the FASB issued Interpretation No. 48, Accounting for Uncertainty
in Income Taxes (FIN 48). Among other things, FIN 48 requires applying a
two-step approach to recognizing and measuring uncertain tax positions accounted
for in accordance with Statement of Financial Accounting Standards No. 109,
Accounting for Income Taxes. The first step is to evaluate the tax position for
recognition by determining if the weight of available evidence indicates it is
more likely than not that the position will be sustained on audit, including
resolution of related appeals or litigation processes, if any. The second step
is to measure the tax benefit as the largest amount which is more than 50
percent likely of being realized upon ultimate settlement. This new guidance has
been effective for the Company since January 1, 2007.

For the Company, the adoption of FIN 48 led to the reclassification of certain
income tax-related liabilities in the Consolidated Balance Sheet. Among others,
the reclassification resulted in a decrease of approx. $340 million in the
opening of deferred taxes - non-current liabilities, a decrease of approx. $100
million in the opening of provisions and other - current liabilities, a decrease
of approx. $30 million in the opening of accrued expenses - current liabilities
and an increase of approx. $470 million in the opening of other liabilities -
non-current liabilities. The adjustment to opening retained earnings was
immaterial. As required by FIN 48, prior periods will not be restated.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (SFAS
157). SFAS 157 defines fair value, establishes a framework for measuring fair
value and expands disclosures about fair value measurements. SFAS 157 does not
require any new fair value measurements and eliminates inconsistencies in
guidance found in various prior accounting pronouncements. SFAS 157 provides a
single definition for fair value that is to be applied consistently for all
accounting applications, and also generally describes and prioritizes according
to reliability the methods and inputs used in valuations. SFAS 157 will be
effective for the Company on January 1, 2008. The Company is currently
evaluating and assessing the impact of adopting SFAS 157 on its Consolidated
Financial Statements.

In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for
Financial Assets and Financial Liabilities - Including an amendment of FASB
Statement No. 115. This Statement permits entities to choose to measure many
financial instruments and certain other items at fair value. The objective is to
improve financial reporting by providing entities with the opportunity to
mitigate volatility in reported earnings caused by measuring related assets and
liabilities differently without having to apply complex hedge accounting
provisions. This Statement is expected to expand the use of fair value
measurement, e.g. for certain firm commitments. SFAS 159 will be adopted by the
Company earliest on January 1, 2008. The Company is currently evaluating and
assessing the impact of adopting SFAS 159 on its Consolidated Financial
Statements.


Local currencies

The results of operations and financial position of many of ABB's non-U.S.
subsidiaries are recorded in the currencies of the countries in which those
subsidiaries reside. The company refers to these as 'local currencies.' However,
ABB reports its operational and financial results in U.S. dollars. Differences
in our results in local currencies as compared to U.S. dollars are caused
exclusively by changes in currency exchange rates.


                                  Appendix III

Reconciliation of financial measures Q1 2007                     Q1 07    Q1 061
------------------------------                                --------  --------
$ millions unless otherwise indicated
------------------------------                                --------  --------
EBIT margin:
------------------------------                                --------  --------
Earnings before interest and taxes                               822       492
------------------------------                                --------  --------
Total revenues                                                 6,215     5,139
------------------------------                                --------  --------
EBIT margin                                                     13.2%      9.6%
------------------------------                                --------  --------

Net margin:
------------------------------                                --------  --------
Net income                                                       537       204
------------------------------                                --------  --------
Total revenues                                                 6,215     5,139
------------------------------                                --------  --------
Net margin                                                       8.6%      4.0%
------------------------------                                --------  --------
 
1Adjusted to reflect the reclassification of activities to
discontinued operations

EBIT margin and net margin are calculated by dividing EBIT and net income,
respectively, by total revenues. Management believes EBIT margin and net margin
are useful measures of profitability and uses them as performance targets.

                                                    Mar. 31, 2007 Dec. 31, 2006 1)
 Net cash:
------------------------------                           --------       --------
Cash and equivalents                                      4,366          4,211
------------------------------                           --------       --------
Marketable securities and short-term
investments                                                 685            528
------------------------------                           --------       --------
Cash and marketable securities                            5,051          4,739
------------------------------                           --------       --------
Short-term debt and current maturities of
long-term debt                                              341            122
------------------------------                           --------       --------
Long-term debt                                            2,371          3,160
------------------------------                           --------       --------
Total debt                                                2,712          3,282
------------------------------                           --------       --------
Net cash                                                  2,339          1,457
------------------------------                           --------       --------
 
Gearing:
------------------------------                           --------       --------
Total debt                                                2,712          3,282
------------------------------                           --------       --------
Total stockholders' equity                                7,231          6,038
------------------------------                           --------       --------
Minority interest                                           484            451
------------------------------                           --------       --------
Gearing                                                      26%            34%
------------------------------                           --------       --------
1) Adjusted to reflect the reclassification of
activities to discontinued operations

Net cash is a financial measure that is calculated as the total of our cash and
equivalents, marketable securities and short-term investments minus our total
debt.

Gearing is a financial measure that is calculated as our total debt divided by
the sum of total debt and total stockholders' equity, including minority
interest. Total debt used to calculate net cash and gearing equals long-term
debt plus short-term debt and current maturities of long-term debt. Management
believes net cash and gearing are helpful in analyzing leverage and it considers
both measures in evaluating possible financing transactions.




     For the full press release, please refer to ABB's website www.abb.com
                                       





                      This information is provided by RNS
            The company news service from the London Stock Exchange