Acquisition

ABB Ltd
9 April 2001



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ABB to acquire Entrelec of France

EUR310-million deal aimed at broadening product offering, building presence in
key markets
  
Zurich, Switzerland, April 9, 2001 - ABB has launched a friendly bid to acquire
the French company Entrelec, a Lyon-based supplier of industrial automation and
control products. The acquisition is aimed at expanding ABB's product range and
reinforcing its position in key European and American markets.
 
'This acquisition is a very effective strategic fit for both companies and will
open significant new growth opportunities, creating a broader product offering
and a stronger presence in some important markets,' said ABB president and CEO,
Jorgen Centerman.

Under the terms of the bid, ABB will make a public tender offer in cash for all
4.9 million outstanding shares of Entrelec, which is listed on the French stock
exchange (second marche). ABB will offer EUR63 per share, representing a premium
of 22.5 percent compared to the share price at the close of trading on April 5,
which was EUR51.45. 

The value of the bid on a fully diluted basis is approximately EUR310 million.

Entrelec supplies industrial automation and control products, including
electrical connecting devices, time relays, signalling and safety devices, as
well as wiring accessories for the housing market. 

Jouko Karvinen, ABB Executive Vice President and head of the Automation
Technology Products division, said 'Entrelec's technology, product scope and
channels to market complement ours extremely well, with few overlaps. We will
now bring together two very strong product lines and two global customer
networks which we believe will provide growth as well as significant economies
of scale in, for example, R&D, marketing and sales, and logistics.' 

Karvinen said that wholesalers of low-voltage products, for example, are
demanding a complete array of products from suppliers, so by integrating
Entrelec's product line, ABB can offer an even wider range of low-voltage
products and business solutions.

Entrelec operates in 17 countries and employs about 2,000 people, with a strong
presence in France, the U.S. and Germany.

The company has production sites in France, Germany, Czech Republic, Poland, the
United States and Mexico. 

The terms of the proposal have been approved by the Entrelec Board of Directors,
who unanimously recommended the offer as fair and in the best interests of
Entrelec shareholders. ABB said the transaction is not subject to financing. BNP
Paribas will act as dealer manager for ABB's bid. 

ABB (www.abb.com) serves manufacturing, process and consumer industries,
utilities, the oil and gas markets, with 160,000 employees in more than 100
countries. Shares are traded on the New York, London, Zurich, Stockholm and
Frankfurt stock exchanges.


This press release does not constitute an offer to sell, or the solicitation of
an offer to buy, any securities. 


This press release includes forward-looking information and statements that are
subject to risks and uncertainties that could cause actual results to differ. 
These statements are based on current expectations, estimates and projections
about global economic conditions, the economic conditions of the regions and
industries that are major markets for ABB Ltd and ABB Ltd's lines of business. 
These expectations, estimates and projections are generally identifiable by
statements containing words such as 'expects', 'believes', 'estimates' or
similar expressions important factors that could cause actual results to differ
materially from those expectations include, among others, economic and market
conditions in the geographic areas and industries that are major markets for
ABB's businesses, market acceptance of new products and services, changes in
governmental regulations, interest rates, fluctuations in currency exchange
rates and such other factors as may be discussed from time to time in ABB's
filings with the U.S. Securities and Exchange Commission.  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.