ABB Alstom Power Results

ABB Ltd
4 February 2000


                         ABB ALSTOM POWER 1999 Results

* Orders up more than 14 percent, revenues flat

* Operating earnings July - December amount to Euro 26 million

* Major restructuring programme launched

* 'Energy 21' programme to cut costs and cycle-times, lift quality

Brussels, February 4, 2000 - ABB ALSTOM POWER, one of the world's leading
suppliers to the power generation industry, said today orders received in 1999
rose  by more than 14 percent. In announcing its pro forma results for its first
year  of  operation, the company also reported that revenues were flat  for  the
year while defining its plans to achieve strong profit growth.

ABB  ALSTOM  POWER was created last year when ABB of Zurich,  Switzerland,  and
ALSTOM of Paris, France merged most of their power generation businesses into a
50-50 joint venture. The company began operations in July  1999,  with  its
fiscal year ending December 31.

'What we have achieved in the short time since the company was formed makes me
extremely  optimistic about ABB ALSTOM POWER's future development,' said  Claude
Darmon,  President and CEO of ABB ALSTOM POWER. 'The significant rise in orders
demonstrates  our customers' continued confidence in our products and  services,
and we see clear opportunities to restore and grow margins significantly.'

Orders and Revenues

Orders received orders rose more than 14 percent to Euro ll.44 billion for the
full  year 1999, based on a pro forma comparison with the combined 1998  results
of the former ALSTOM Energy Sector and ABB Power Generation Segment. Revenues of
Euro 9.85 billion for the year were flat compared to the previous year (also on
a pro forma  basis), as higher revenues in the gas turbine sector were offset by
 a decline in steam turbine-related  revenues. For the six months July to
December, order intake was Euro 5.9 billion and revenues Euro 5.4 billion.

The  positive  order  trend in 1999 is primarily due  to  a  booming  
market  for  gas turbine and combined-cycle power plants,  particularly
in   the  U.S.,  Mexico  and  Spain.  The  company  also  reported  an
exceptionally  high  market share in steam power  plants.  The overall
rise in  orders was accompanied by increased market share in  most  of
the company's activities.

In gas turbines, ABB ALSTOM POWER is benefiting from the increasing
number of privately-financed merchant plant projects in the U.S. and the 
corresponding demand for high-efficiency, cost-effective gas turbine technology.
During the company's first six months of operation, gas turbine orders in the
U.S. totaled U.S. Euro 1.5 billion, comprising over 3,500 megawatts (MW) of
combined-cycle gas-fired plants. Major turnkey orders were awarded in the UK,
Japan, Australia and Singapore. In Spain, ABB ALSTOM POWER won a major power
generation order (Euro 600 million) to build two 800 MW combined-cycle plants.  
                

Demand  for  smaller gas turbines continued to be buoyant. The  company
introduced  two new gas turbines to the market during the year:  the 
43-MW GTX  100 designed for combined-cycle plants, and  the  13 MW Cyclone. 
Both  have  undergone initial testing with  very  promising results.

In  the  steam  power  plant business, a number of large  orders  were
received  during the year for coal-fired plants, including a  3x660  MW
plant  in  Manjung, Malaysia; a 2x660 MW plant in Ho Ping,  Taiwan;  a
250 MW  plant  in  Neyvelli,  India; and  circulating  fluidized  bed
boilers  for  a  2x250 MW plant in Guayarra, Puerto Rico.  ABB  ALSTOM
POWER  also  won  an order for advanced supercritical  boilers  at  the
2x900 MW plant at Wai Gao Xiao, China.

ABB  ALSTOM  POWER  has  also been successful  in  the  retrofit  and
rehabilitation  market - especially  in  North  America   and   Europe - as
customers  continue  to upgrade both their environmental  and  economic
performance.  The  company  won  a  major  order  to  rehabilitate   a
coal-fired  power  plant in Turow, Poland, together with  several  steam turbine
retrofit orders in North America.


Orders in the environmental control business rose sharply, reflecting
strong  growth in North America. The company's new clean air system,  
SCONOx,  introduced  in  December 1999, sets a new standard  in  emissions
reduction  for  large  gas  turbines  and  is  expected  to   open   new
opportunities in this promising market.

Service  now accounts for 30 percent of orders, and a Customer  Service
Segment  has  been  set  up to target new growth opportunities  in  this
area.


Operating Earnings

Operating   earnings(1)  in  the  first  half  year  of  operations   from
July-December 1999 amounted to Euro 26 million.

The  exceptional project-related provisions previously disclosed by ABB
and  ALSTOM  have  been accounted for in the company's  opening  balance
sheet.  These  provisions were taken as a result  of  ABB  ALSTOM  POWER
management's opening review of all contracts and operations.

Earnings before taxes, after financial items of negative  Euro 14  million,
totaled Euro 12 million.


(1) *Operating earnings' are defined as operating earnings after depreciation
before financial items and taxes.


Improving Competitiveness

The  gross  margin  on  new orders taken during the  July-to-December period is
higher than the margin in the order backlog, an indicator  for improved 
profitability in the future. The operating margin  target  of 3-4%  for the
company's first full year of operations has been previously announced, the
longer term target being 7-8%.

To  achieve  this  goal, the company is currently taking  steps  to improve
its competitive position.

Restructuring:  In order to fully exploit synergies, successfully complete  the 
integration process and position the  company  as  the most  competitive power
generation services and equipment supplier,  a worldwide  restructuring
programme was launched covering more than 100 projects.

The  restructuring  process is now gathering  pace,  with  substantial
workforce  reductions  having been announced in several  countries  at
the end of 1999.  Expenditures for restructuring in 1999 amounted to
approximately Euro 90 million.

Including  the synergy benefits, the overall programme is expected  to
lead to savings of Euro 500-600 million when fully implemented,

R&D: Spending on Research & Development represents approximately 4 percent  of 
revenues and is expected to remain at this level.  There will be synergy savings
from areas of technical overlap from the two former organisations and
significantly higher investments in gas turbine development.

* 'Energy  21': ABB ALSTOM POWER is launching a comprehensive  programme,
  'Energy  21', to improve its quality, sourcing and project management.
The goal is to reduce the company's cost base by 30 percent in three years. 

Contacts

Press
ABB           John Fox             (Tel: [phone])
ALSTOM        Gilles Tourvieille   (Tel: [phone])

Investor Relations
ABB           Manfred Ebling       (Tel: [phone])
ALSTOM        Heather Green        (Tel, [phone])