Bank Credit Facility

ABB Ltd
21 March 2002


ABB strengthens liquidity and financial flexibility

Company draws US$ 3 billion in cash under bank credit facility

Zurich, Switzerland, March 21, 2002 - ABB said today that it has notified its
banks that it will draw US$ 3 billion in cash under a credit facility
established last December in anticipation of a tightening of the commercial
paper market. The cash will be mainly used to pay down commercial paper as it
matures in 2002, leaving approximately US$ 1 billion to add to cash reserves.

The US$ 3 billion drawdown will increase both the liquidity and financial
flexibility of the group, but will not increase ABB's overall net debt position,
said ABB chief financial officer Peter Voser.

'The US$ 3 billion bank credit facility was established in anticipation of the
tightening of the commercial paper market. By drawing this facility we ensure
that we have more than enough cash available under foreseeable circumstances,'
Voser said.

'This increase in liquidity gives us financial flexibility as we lessen our
reliance on present volatile short-term capital markets. We will also lower the
proportion of short-term debt to long-term debt and work to meet our strategic
goal of reducing net debt by US$ 1.5 billion by the end of the year,' he said.

ABB reduced its net debt by US$ 2.2 billion during the fourth quarter of 2001.
Operational cash flow more than doubled from US$ 1 billion in 2000 to US$ 2.2
billion in 2001. ABB aims to reduce net debt in 2002 through operational cash
flow, asset sales including real estate and pruning of the business portfolio.

Credit Suisse First Boston and Citigroup are the lead banks for the bank
syndicate that arranged the US$ 3 billion credit facility. ABB will hold
discussions with its syndicate banks to enhance the flexibility of the credit
facility.

There will be a conference call for investors and analysts today at 17.00
Central European Time. European callers should dial [phone] and callers
in the United States should call [phone]. Playback callers should dial
[phone] in Europe and [phone] in the United States. The pin code
is 340.



For more information please contact
 
Media Relations
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