Final Results

ABB Ltd
3 February 2000



ABB Corporate Communications, Zurich           ABB Investor Relations, Zurich
John Fox                                       Manfred Ebling
Tel: [phone]                            Tel: [phone]
Fax: [phone]                            Fax: [phone]
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           'New ABB' shows strong '99 earnings, cash generation

* Operating earnings up 16 percent (excluding capital gain)

* Operating cash flow 76 percent higher

* Preparing for U. S. listing

Zurich,  Switzerland,  February 3, 2000  -  ABB,  the  global  technology
company, said today earnings and cash flow showed significant growth in 1999, a
milestone year of rapid change to its business portfolio and the introduction 
of  a  single-class ABB  share.  As  the  shift  to  higher value-added,  more 
knowledge-based  businesses  continues,  the  company expects  2000  to  be a
year of strong growth. The company  is  currently preparing for a U.S. listing.


US$ in millions unless otherwise stated (1)

                                        1999     1998  Change*)

Revenues                              24,681   23,733       +4%
Operating Earnings                     2,416    1,858      +30%
Net Income                             1,614    1,305      +24%
Net Operating Cash Flow                1,823    1,037      +76%
Net Income per Share (US$)              5.38     4.35      +24%
Dividend per Share (CHF) (2)            3.00     2.47      +21%
Dividend per Share (SEK) (2)           16.00    13.58      +18%

*) In local currencies, revenues increased by 8 percent and earnings by
   34 percent

(1) All  figures reflect the 'new' ABB composition following the contribution
of  most of the power generation business to the ABB ALSTOM POWER joint venture.

(2) 1999  dividend per share as proposed. 1998 pro forma dividend per share,
based on new single-class share structure.

'We're  facing a new world where speed, flexibility and brain power are
the  keys to delivering greater value, and we're reinventing ABB to  be  a
leader  in  that  world,' said Goran Lindahl, ABB's  President  and  CEO.
'We're  expanding  into businesses where we can be  leaders  and  leaving
businesses  where we can't. Our 1999 results show that we're  heading  in
the  right direction and that we can look forward to solid growth in  the
future.  Our  target is to increase the Group's operating  margin  to  12
percent within the next four years, based on an annual revenue growth  of
six to seven percent'

All  of ABB's industrial segments reported higher operating earnings  and
most showed stable  or  higher  revenues, reflecting both growing  demand  for 
ABB's complete  technology  and service solutions as well  as  successful  cost
management. Operating  cash flow, a key indicator  of  ABB's  ability  to
generate more value, was 76 percent higher at $ 1,823 million. Net income
reached an all-time high of $1,614 million.

ABB's  1999  earnings were lifted by a capital gain from the transfer  of
most of its power generation business to a 50-50 joint venture with ALSTOM of
France,  called ABB  ALSTOM  POWER. Excluding this gain, operating earnings were
 16  percent higher,  leading  to  an operating margin of 8.7  percent,  up 
from  7.8 percent; net income was up 11 percent.

Long-term Targets (1)

ABB's  improved  position  in knowledge- and service-related  technologies
will drive growth in the coming years:

* Major   drivers  for  Power  Transmission  will  be  customers outsourcing  
service  and  retrofit,  crossborder  grid  interconnection opportunities,
advances in high-voltage technology and growing demand for electricity-trading
systems.

* Power Distribution will continue to target liberalized markets and focus on
modular, intelligent products, systems and solutions for the electrical
distribution industry, including distributed power.

* In  Automation, additional eCommerce applications and a  single open  software
 platform together with selected strategic alliances  will
allow us to create new solutions and further scale economies.

* New  subsea  processing  and smart  well  technologies  in  the upstream 
(development and production of oil and  gas)  market  and  new process
technologies for the refining and petrochemical industries in the
downstream market will be the focus for Oil, Gas and Petrochemicals.

* Global sales of low-voltage products, integrated technology solutions for
buildings, and full service will be the key growth areas for Building
Technologies (the former 'Products and Contracting' segment).

* Financial  Services  will expand further  in  key  regional markets, develop
new financing packages to support ABB sales, and  create additional eCommerce
market channels.

ABB's long-term targets by segment are summarized in the table below.

ABB Group and Segment            Average Annual Compound      Operating Margin
Targets                        Growth in Revenues 2000-2003         By 2003

Power Transmission                           6%                        12%
Power Distribution                          10%                     10-11%
Automation                                   6%                     14-15%
Oil, Gas and Petrochemicals                  7%                       7-8%
Building Technologies                        7%                         9%
Financial Services                          N/A         Earnings >$500 million

ABB Group                                   6-7%                       12%

For  the  ABB Group, revenues are expected to grow on average 6-7 percent
annually during  the  next  four  years. With ABB's continued  focus  on 
profitable growth, operating margin is targeted to reach 12 percent by 2003.

(1) The  statements  in  this  release  relating  to  matters  that  are  not
historical facts are forward-looking statements that are not guarantees of
future performance  and  involve risks and uncertainties, including but not
limited  to  future global economic conditions, foreign  exchange  rates,
regulatory approvals, market conditions, the actions of competitors and other
factors beyond the control of the Company. 

The New ABB

From the very beginning of 1999, ABB continued its transformation by acquiring
Elsag  Bailey  Process  Automation  to  take  market  leadership  in  the
automation industry. ABB divested its 50-percent share in Adtranz, formed
the  joint  company ABB ALSTOM POWER, a new supplier to the  global  power
generation  industry,  and  agreed to  sell  its  nuclear  activities  to
British-based  BNFL, pending regulatory approvals. ABB  expanded  in  the
high-growth area of full-service by acquiring a major player in Brazil. The
company introduced its single-class ABB share and is now preparing for  a
U.S. listing. The former business segment 'Products and Contracting'  was
renamed  Building Technologies to better reflect its focus on  delivering
complete technology  solutions, including products, service and maintenance for
buildings and factories.

ABB  launched a major value creation initiative with management focus  on
value drivers such as volume and margin growth, reduced working capital, and the
elimination of non-performing assets. The company evaluates all of its
investments to  ensure they bring a return that is significantly higher than the
average cost of capital  in that particular business.  Value creation 
principles  also  drive  ABB's  research  and development (R&D). R&D investments
 reached  8.4 percent of revenues  in  1999  (1998: 8.2 percent), with a number 
of  important  developments in molecular-level  nanotechnologies, fully
automated and   robotized   manufacturing  processes,  and  powerful  
high-voltage semiconductors.

Alliances  and long-term partnerships are also taking on a new importance
in  ABB  as  a  vehicle  for developing new technologies  and  delivering
complete solutions. Partnerships with other technology companies allow us
to  achieve  the  economics  of scale needed in  product  development  to
compete  at  the  global level. In all of our business segments,  we  are
teaming up with our customers, often through long-term supply agreements,
to  provide them with a broad range of technology, products, systems  and
services.

In  the  area of eCommerce, ABB will take further major steps in 2000  to
harness  its  full  potential, rapidly expanding its capability  to serve
customers online. Inside the decentralized Group, new IT-based tools  and
shared processes -such as administrative, finance and IT services  -  are
being  introduced  worldwide to drive deeper efficiency  gains, and to
exploit economies of scale and scope.

ABB  Group's  total  number  of employees at year-end  1999  was  164,154
compared  to 199,232 at the end of 1998. Excluding employees included  in
the  ABB ALSTOM POWER joint venture, the number of employees in 1998  was
162,793.  Employment in Automation, Building Technologies  and  Financial
Services increased mainly due to acquisitions.  Building Technologies also added
employees at customer sites through new full-service contracts.  On  a 
comparable basis, adjusted  for  acquisitions  and divestitures, the number of
employees decreased by 4 percent.


Market Environment and Revenues

ABB's  transformation comes at a time when world markets  are  improving.
Industrial production growth is rebounding in most of the OECD countries,
where  ABB conducts more than 80 percent of its business. Economic growth
improved throughout most of Europe, including Central and Eastern Europe.
The economics of the U.S. and Canada showed high growth, which fuelled  a
recovery  in South America. However, low commodity prices, especially  in
the  first  half  of  the year, slowed investments by  ABB  customers  in
several North American commodity-based industries, such as mining or pulp
and  paper.  An economic recovery is also well under way throughout  Asia
and growth in China remained robust.

Revenues (2)  increased by 4 percent, led by increases in Automation,  Power
Distribution and Oil, Gas and Petrochemicals.

Orders received increased 4 percent, with large orders (those exceeding 
$15  million)  14 percent higher. Base orders, now representing  about  80
percent  of  Group revenues, were 2 percent up. Excluding currency  effects
(the  effect of translating local currencies into the U.S. dollar,  ABB's
consolidation currency), base orders increased 6 percent and large orders
by  17  percent. Large orders included the upgrade of a major U.S.  power
grid, high-voltage systems in China, significant full-service projects in
the  pulp and paper industry, robots for the U.S. postal service and  gas
compressor stations in Poland. The order backlog reached $ 14,886 million
(1998: $14,934 million).

Both  revenues and orders received increased by 8 percent when  expressed
in local currencies.

Earnings

ABB's  expansion into higher margin businesses, rigorous cost control and
improved  internal processes led to further improvements of earnings  and
margins.  Operating earnings after depreciation were up 30 percent  at  
$2,416  million (1998: $1,858 million). Excluding the capital gain (3)  from
the  formation of ABB ALSTOM POWER, operating earnings increased  by  16
percent.  The corresponding operating margin increased to 8.7  percent  in
1999  from  7.8  percent  last  year.  Personnel  and  material  expenses
decreased as a percent of revenues (4). Personnel expenses decreased to 30.0
percent  (1998: 30.8 percent) and material expenses  decreased  to  41.2
percent  (1998: 41.8 percent). Other expenses rose to  16.8  percent  of
revenues (1998: 16.6 percent) as outsourcing increased.

All   industrial   segments  lifted  operating   earnings,   with   Power
Transmission's operating margin exceeding 11 percent. Building Technologies  and
Power Distribution also increased their margins. Oil, Gas  and
Petrochemicals  maintained  its  profitability  in  a  difficult   market
environment.  As  expected, Automation did not reach last year's margin
level because of integrating Elsag Bailey and carrying the major share of
the  Group's  $150  million costs for Year 2000 preparations  in  1999.
Financial Services again reported a high operating result.

EBITDA  (earnings before interest, taxes, depreciation and  amortization)
increased  to $3,234 million (1998: $ 2,592 million), another indication
of  the  improved earnings and cash flow generation. Operating cash  flow
increased by 76 percent to $ 1,823 million (1998: $1,037 million).  This
increase was not influenced by the capital gain.

Net income amounted to $ 1,614 million (1998: $ 1,305 million). Excluding
the  capital  gain,  net  income increased by 11  percent.  Income  taxes
amounted  to  $ 665 million, corresponding to a tax rate of 28.8  percent
(1998: 29.1 percent).

Return on equity reached 27.9 percent (1998: 23.2 percent) and return  on
capital  employed  was 21.8 percent, burdened by the recent acquisitions
still under integration (1998: 21.1 percent).

(2)  To  facilitate comparison, ABB excluded the power generation  business
contributed  to the ABB ALSTOM POWER joint venture in both  1998  and  1999
figures for revenues, expenses, and operating earnings.

(3)Capital  gain  of $262 million at the operating earnings level $162 million 
at  net income level after taxes. 

(4)Revenues including changes  in work in progress and finished goods.



ABB ALSTOM POWER

The joint venture with ALSTOM of France reported strong growth in orders
received during its first half year of operation, particularly for gas turbines.
A major project was a 2x800 megawatt combined-cycle power plant in Spain. As
previously stated, the company's targets are a net operating margin of 3-4
percent during 2000 (the first full year of operation) and a longer-term margin
of 7-8 percent. ABB ALSTOM POWER's operating results from July through December
1999 reached EUR 26 million ($28 million). ABB's 50 percent share, net of
financial items, amounted to $6 million and is recorded under 'Earnings from
equity accounted companies.'

Balance Sheet

ABB  continued  to  reduce  its dependence on heavy  assets,  with  total
machinery  and  equipment plus land and buildings in  relation  to  total
assets reaching 11.5 percent in 1999. It was the third year in a row with
a  two  percentage-point reduction of these assets in relation  to  total
assets.  Acquisitions during 1999 totaled $1,745 million  (1998:  $ 274
million),  the largest being the Elsag Bailey acquisition,  valued  at  
$2,204  million, including $648 million of debt. The goodwill related  to
the  acquisition  of  Elsag Bailey amounted to $2,206  million.  Capital
expenditures  for  tangible fixed assets in 1999 reached  $ 679  million
(1998: $738 million), including $74 million for land and buildings  and
$475 million for machinery and equipment.

Dividends

ABB's  dividend  policy  is  to pay out between  30  and  50  percent  of
consolidated net income for the year. The Board of Directors  proposes  a
dividend for 1999 of CHF 900 million (SEK 4,800 million). Translated into
U.S. dollars at the time of the decision, the dividend corresponds to  38
percent  of ABB net income for 1999 excluding the capital gain (1998:  40
percent).

Outlook for 2000 (1)

For 2000, recoveries in emerging markets are expected to increase orders
and  revenues  for  Power  Transmission while earnings  are  expected  to
increase  slightly.  Ongoing deregulation and privatization  as  well  as
demand for system solutions should increase both volume and earnings  for
Power  Distribution.  A  recovery  in  most  of  Automation's  markets  plus
substantial  cost reductions and synergies associated with Elsag Bailey,
the  newly  acquired  company,  are expected  to  increase  revenues  and
operating  earnings in the Automation segment. Revenues of  Oil,  Gas  and
Petrochemicals  are expected to increase slightly and operating  earnings
should remain at about the same level, although both will be weak in  the
first  half  due  to  lower  orders in 1999. Revenues  and  earnings  are
expected  to increase for Building Technologies. Income before taxes  for
Financial Services is expected to increase from the 1999 level.

The  current  economic  upturn in basically all regions  is  expected  to
further  support ABB's business. ABB expects the benefit from the  upturn
in Europe and other major regions to become visible by mid-2000.

ABB Group's revenues ale expected to increase in 2000. Operating earnings
are also expected to increase compared to 1999, excluding the capital  gain.
Cash  flow  will  grow at least in line with earnings.  Guided  by  clear
value-creation targets, ABB will continue its strategic transformation in
2000 and beyond.


Consolidated Income Statement

Year ended December 31             1999             1998           1998

                                  Reflecting the new ABB
(US$ in millions)                      composition 1)

Revenues                         24,681          23,733          30,872
Material expenses               -10,120         -10,006         -13,606
Personnel expenses               -7,381          -7,361          -9,044
Other expenses                   -4,127          -3,970          -5,085
Changes in work in progress 
and finished goods                  -93             182            -132
Depreciation of fixed assets       -819            -719            -926
Unusual items                       275              -1              32
Operating Earnings after 
Depreciation                      2,416           1,858           2,111
Earnings from the defined 
power generation business            51             253               -
Earnings from equity accounted 
companies                            76               0               0
Dividend income                      14              21              25
Interest income                     399             469             462
Interest expense                   -698            -735            -734
Exchange differences                 50              -1               1
Income before Taxes               2,308           1,865           1,865

Income taxes                       -665            -543            -543
Net Income before Minority 
Interests                         1,643           1,322           1,322

Minority interests                  -29             -17             -17
Net Income                        1,614           1,305           1,305

Basic and diluted earnings 
per share, in US$ a)              5.38            4.35            4.35

1)  On June 30, 1999, ABB contributed most of  its  powerful  generation
business  (except  nuclear, some renewable power and  distributed  power
businesses), herein called the 'defined power generation business,' to  a
new joint venture named ABB ALSTOM POWER

To facilitate comparisons, the columns reflecting the new ABB composition
exclude the defined power generation business from all positions except for
income  before  taxes, income taxes, net income before minority  interest
and  net income. In the 1999 ABB Group annual report, a complete  set  of
figures will be presented, also including the defined power generation
businesses through June 30, 1999.

The  corresponding  key  figures for 1999,  including  the  defined  power
generation  business through June 30, 1999, are: revenues $ 27,794  million
and operating earnings after depreciation $ 2,463 million.

a) Calculation based on 300,002,358 registered shares.


Balance Sheet

December 31 (US$ in millions)                      1999     1998

Assets
Current Assets
Cash and cash equivalents                         6,288    7,790
Trade receivables                                 4,360    6,173
Inventories                                       3,393    4,444
Other current assets                              4,025    4,463
Total Current Assets                             18,066   22,870

Fixed Assets
Financing receivables                             2,826    2,145
Shares and participations                         1,414      750
Intangible assets                                 3,162    1,927
Construction in progress                            126      173
Machinery and equipment                           1,740    2,428
Land and buildings                                1,649    2,090
Deferred tax assets a)                              533      511
Total Fixed Assets                               11,450   10,024

Total Assets                                     29,516   32,894

Liabilities and Equity
Current Liabilities
Trade payables                                    3,218    5,225
Provisions                                        4,287    4,286
Other current liabilities                         5,594    4,963
Short-term loans                                  2,822    3,409
Total Current Liabilities                        15,921   17,883

Non-Current Liabilities
Advances from customers                           1,114    2,646
Medium- and long-term loans                       3,137    2,808
Employee benefits                                 2,171    1,771
Deferred tax liabilities a)                       1,248    1,512
Total Non-Current Liabilities                     7,670    8,737
Minority Interests                                  317      315
Stockholders' Equity
Share capital                                     1,932    2,087
Restricted reserves                               1,183    1,103
Other reserves and retained earnings                879    1,464
Net income                                        1,614    1,305
Total Stockholders' Equity                        5,608    5,959
Total Liabilities and Equity                     29,516   32,894

a) 1998 figures restated for the separate disclosure of deferred tax
assets and liabilities


Statement of Cash Flows

Year ended December 31              1999             1998          1998
                                  Reflecting the new ABB
(US$ in millions)                    composition 1)

Cash Flow from Operating Activities
Income before taxes a)              2,308           1,865           1,865
Adjustments for depreciation 
of fixed assets                       819             719             926
Adjustments for changes in         
provisions                           -236            -502            -551
Adjustments for changes 
in employee benefits                 -303             106              35
Adjustments for other items          -460            -380            -149
                                    2,128           1,808           2,126

Changes in current operating assets and liabilities:
Trade receivables                     -10             -64            -631
Other current assets                 -500            -281            -686
Inventories                           -97             -30             168
Trade payables                        262              88             744
Other current liabilities 
(excl. income taxes due)              315            -212             -46
Advances from customers                33              77             857
                                        3            -422             406
Income Taxes Paid                    -308            -349            -428

Net Cash Flow from 
Operating Activities                1,823           1,037           2,104

Cash Flow Related to Investing Activities
Changes in financing receivables       -5            -696            -300
Acquisitions 
(net of cash acquired)             -1,724            -271            -274
Capital expenditure for 
tangible fixed assets                -679            -738            -865
Proceeds from divestitures 
(net of cash disposed)              1,870              60              60
Proceeds from disposal of 
tangible fixed assets                 456             277             288
Net Cash Flow Related to 
Investing Activities                  -82          -1,368          -1,091

Cash Flow Related to Financing Activities
Changes in short-term loans b)     -2,996           2,556           1,672
Changes in medium- and 
long-term loans b)                    376             631             286
Dividends paid                       -503            -507            -507
Other items                           208            -394            -509
Net Cash Flow Related to 
Financing Activites                -2,915           2,286             942

Effects of Translation Differences on
Cash and Cash Equivalents            -328              45              45
Net Change in Cash and 
Cash Equivalents                   -1,502           2,000           2,000
Cash and cash equivalents -
beginning of year                   7,790           5,790           5,790
Cash and cash equivalents
- end of year                       6,288           7,790           7,790

1) Excludes the defined power generation businesses as described in
footnote 1) of the Consolidated Income Statement.

a) Actual interest received/paid does not differ materially from 'Interest
Income/Expenses' as included in income before taxes, and is thus not
explicitly shown in the above presentation .
b) Includes the effect of loans created through acquisitions/divestments.


Statement of Changes in Equity

Year ended December 31                            1999             1998
(US$ in millions)

Equity as of December 31, previous year 
(1998 and 1997, respectively)                     5,959           5,283
Inclusion of ABB Ltd, ABB AB and ABB AG a)           34               -
Changes in accounting principles 
and other items b)                                 -935             -74
Dividend payments                                  -503            -460
Translation differences                            -561             -95
Net income                                        1,614           1,305
Equity as of December 31                          5,608           5,959

a)   Net assets of ABB AB and ABB AG other than their holdings in the ABB
group contributed to ABB Ltd at June 28, 1999, i.e. after pay-out of
ordinary dividends to respective shareholders related to 1998 and a
special dividend to ABB AG shareholders on June 25, 1999.

b) Introduction in 1999 of revised IAS 19 on Employees Benefits and in 1998
of revised IAS 12 on Income Taxes.


Main exchange rates used in the translation of the Financial Statements

                         Average   Year-end  Average  Year-end
                        1999/US$   1999/US$ 1998/US$  1998/US$

EURO (1998: ECU)            0.94       1.00     0.89      0.86
German Mark                 1.83       1.95     1.76      1.68
Swedish Krona               8.28       8.53     7.95      8.13
Swiss Franc                 1.50       1.60     1.45      1.38

In 1999, changes in exchange rates had a negative effect of approximately
4 percent on revenues, orders received and earnings compared to the previous
year. The balance sheet figures were reduced on average by approximately
8 percent due to the strengthening of the dollar compared to year-end 1998.


Data per Region (reflecting the new ABB composition)

(US$ in millions)  Orders        Revenues   Average Capital      Capital
                   Received                   Employed         Expenditure
                 1999   1998   1999   1998    1999  1998 1)   1999     1998

Europe         14,296  14,367 14,032 13,401  8,908  8,213      485      499
The Americas    5,391   5,597  5,797  5,377  3,160  2,782      133      154
Asia            3,313   2,346  2,838  2,903  1,067  1,010       37       63
Middle East and 
Africa          2,379   2,201  2,014  2,052    424    314       24       22
Total          25,379  24,511 24,681 23,733 13,559 12,319      679      738

1) Includes the average capital employed relating to the defined power
generation business.


Segment Data (reflecting the new ABB composition)

Data per Business Segment      Orders Received    Order Backlog    Revenues
(US$ in millions)
                              1999     1998     1999   1998   1999     1998

Power Transmission           3,934    4,428    3,341  4,070  3,727    4,038
Power Distribution           3,034    2,672    1,875  1,409  2,867    2,607
Automation                   8,152    7,015    4,077  4,013  8,269    7,036
Oil, Gas and Petrochemicals  3,036    3,324    2,547  2,845  3,092    2,860
Building Technologies        6,629    6,464    2,265  2,231  6,323    6,385
Financial Services             829      860        0      0    829      860
Various Activities/Corporate 2,461    2,434    1,523  1,431  2,280    2,544
Total                       28,075   27,197   15,628 15,999 27,387   26,330
Intra-Group transactions    -2,696   -2,686     -742 -1,065 -2,706   -2,597
Net Total                   25,379   24,511   14,886 14,934 24,681   23,733


Data per Business Segment    Operating Earnings  EBITDA  Capital Expenditure
(US$ in millions)            after Depreciation

                              1999      1998   1999   1998   1999     1998

Power Transmission             421       374    512    487    102      125
Power Distribution             209       179    268    234    112       76
Automation                     553       521    846    697    164      179
Oil, Gas and Petrochemicals    185       175    240    228     48       55
Building Technologies          485       419    618    570    127      145
Financial Services             353       403    370    417     47       14
Various Activities/Corporate   210      -213    380    -41     79      144
Total                        2,416     1,858  3,234  2,592    679      738


Data per Business Segment              Average          Number of
(US$ in millions)            Capital Employed 1)        Employees

                                 1999    1998         1999     1998

Power Transmission              1,689   1,723        22,338   26,927
Power Distribution              1,055     965        16,378   16,511
Automation                      4,540   2,574        49,554   43,384
Oil, Gas and Petrochemicals       699     709         8,941    8,774
Building Technologies           1,578   1,558        54,941   53,753
Financial Services                N/A     N/A         1,049      894
Various Activities/Corporate    3,998   4,790 1)     10,953   12,550
Total                          13,559  12,319       164,154  162,793

1) Includes the average capital employed relating to the defined power
generation business.

The ABB 1999 annual report will be published on February 22. The Annual
General Meeting will take place on March 16 in Wettingen, Switzerland with a
live transmission to Vasteras, Sweden.


For more information, please contact:
ABB Corporate Communications, Zurich       ABB Investor Relations, Zurich
John Fox                                   Manfred Ebling
Tel: [phone]                        Tel: [phone]
Fax: [phone]                        Fax: [phone]
[e-mail]                        [e-mail]