Re Agreement

ABB Ltd
11 October 2002
     
 
ABB Export Bank sells residential mortgage 
transactions for US$ 55 million

Part of ongoing sale of Structured Finance business operations

Zurich, Switzerland, October 11 - ABB said today that it has signed an agreement
to sell the residential mortgage transactions of ABB Export Bank to the Swiss
bank, Zurcher Kantonalbank, for US$ 55 million as part of its ongoing strategy
to reduce net debt and focus on power and automation technologies.

The deal is scheduled for completion on October 31, 2002.

'This divestment helps us reduce net debt and simplify our operational and
reporting structure,' said Peter Voser, ABB's chief financial officer, 'Zurcher
Kantonalbank is in a good position to take over these activities and manage it
to the best interest of mortgage holders going forward.'

ABB Export Bank is part of the Structured Finance business area of ABB's 
Financial Services business division.

ABB announced early last month, that it was selling most operations of its
Structured Finance business area, also part of the Financial Services division,
to GE Commercial Finance for US$ 2.3 billion. At the time, ABB said it was in
negotiations to divest some or all of the ABB Export Bank, ABB's 35 percent
equity stake in the Swedish Export Credit Corporation, and its aircraft leasing
business, whose total book asset value was about US$ 0.9 billion at the end of
June 2002.

ABB (www.abb.com) is a leader in power and automation technologies that enable
utility and industry customers to improve performance while lowering
environmental impacts. The ABB Group of companies operates in more than 100
countries and employs about 150,000 people.



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.


For more information please contact.


ABB Corporate Communications, Zurich         ABB Investor Relations
Thomas Schmidt                               Switzerland: Tel. [phone]
Tel: [phone]                         Sweden: Tel. [phone] 
Fax: [phone]                         USA: Tel. [phone]
[e-mail]                   [e-mail]

 


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