Re Agreement

ABB Ltd
1 December 2000


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Thomas Schmidt
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ABB signs cooperation agreement with Democratic People's Republic of Korea

Zurich, Switzerland, December 1, 2000 - ABB, the global technology company,
said today it has signed a wide-ranging, long-term cooperation agreement with
the Democratic People's Republic of Korea (DPRK) aimed at improving the
performance of the country's electricity transmission network and basic
industries.

The agreement was signed in Pyongyang during a recent four-day visit by an ABB
delegation led by President and CEO Goran Lindahl. It covers investment
opportunities and technical cooperation in the area of modernizing DPRK's
national electrical grid, and upgrading electrical equipment and control 
systems in power plants and industrial plants. It also covers cooperation in the
field of wind power and solar energy systems as well as the opening of a
representative office in Pyongyang in 2001.

'ABB's strategy is to move early and develop strong long-term local partnerships
in emerging markets,' Lindahl said. 'We can combine our technology and business
know-how with DPRK's local technical expertise to upgrade the country's
electricity and basic industrial infrastructure as it moves into the larger
economic community. We see clear benefits for both sides from this
pioneering agreement.'

ABB said it will review joint investment opportunities with partner enterprises
in the DPRK electrical products and services sector. ABB would assume management
control and transfer technology and management expertise. A delegation of DPRK
Ministers said ABB would be provided with 'favorable frame
conditions for their investment and technical cooperation.'

The agreement is also aimed at improving performance and efficiency in the
manufacture of electrical products, such as transformers, circuit breakers and
cables. This includes the supply of complementary electrical products, systems
and equipment.

The ABB Group (www.abb.com) 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 160,OO0
people in more than 100 countries.