Acquisition

ABB Ltd
4 May 2000



ABB Corporate Communications, Zurich
John Fox
Tel: [phone]
Fax: [phone]
[e-mail]

ABB Brazil, Osasco
Carlos-Roberto Hohl
Tel: [phone]
Fax: [phone]
carlos-roberto.hohl@b abb.mail.abb.com


ABB ACQUIRES BRAZILIAN DISTRIBUTION TRANSFORMER COMPANY

Plans technology upgrades to serve growing Latin American market

Zurich, Switzerland, May 04, 2000 - ABB, the global technology company, said
today it is purchasing MEGA Transformadores S.A.(MEGA), a leading supplier of
distribution transformers in Brazil. ABB said it plans to quickly introduce new
technology into the company, aimed at fuelling growth in its power distribution
business in the dynamic privatizing Latin American market. The company did not
release the value of the acquisition.

MEGA employs around 180 people and is based in Blumenau, in southern Brazil. The
company supplies a wide range of oil-insulated and dry distribution transformers
and has a strong position in the South American market.

ABB plans to introduce its worldwide Internet-based quotation and order handling
system to the company. The Web-based technology will be connected to new
equipment and reduce total cycle times from several months to just over two
weeks. ABB will also introduce new dry-type vacuum cast transformer technology
to the plant to supply the whole Latin American region.

The acquisition of MEGA is in line with the ABB's strategy to build its local
presence in rapidly deregulating and privatizing electricity markets. ABB
recently acquired a major industrial service provider in Brazil and an oil and
gas equipment supplier in Argentina. ABB now employs more than 10,000 people in
Latin America.

The ABB Group serves customers in power transmission and distribution;
automation; oil, gas and petrochemicals; building technologies; and in financial
services. With novel IT applications, tailored software solutions, growing
eBusiness and a fast-expanding knowledge and service base, ABB is building links
to the new economy. The ABB Group employs about 165,000 people in more than 100
countries.