Re Agreement

ABB Ltd
27 June 2002

ABB sells real estate in Sweden for US$ 300 million

Sale part of financial strategy

Zurich, Switzerland, June 27, 2002 - ABB, the global power and automation
technology group, announced today it has sold its property portfolio in Sweden
to London & Regional Properties Ltd. (LRP) for US$ 300 million.

'The real estate sales contribute to reducing our net debt. This is a core
element in our financial strategy announced earlier this year. The strategy aims
at strengthening the balance sheet and increasing our financial flexibility,'
said Peter Voser, ABB's chief financial officer.

ABB has announced it intends to reduce net debt by at least US$ 1.5 billion this
year through a combination of cash earnings, asset sales and portfolio
management, including the divestment of its Structured Finance business area,
which is set for the third quarter of 2002.

Under the deal, ABB has sold offices, and industrial and warehousing assets,
totalling about 1.1 million square meters in 35 municipalities. The properties
are located mainly in Vasteras (475,000 square meters) and Ludvika (190,000
square meters).

ABB has signed long-term lease agreements with LRP, and will continue to rent 75
percent of the premises that are being sold through leasing contracts ranging
from 1.5 to 15 years. LRP is a London-based, privately owned real-estate
company.

ABB (www.abb.com) is a global leader in power and automation technologies that
enable utility and industry customers to improve performance while lowering
environmental impact. The ABB Group of companies operates in more than 100
countries and employs about 152,000 people worldwide.





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