Re Agreements

ABB Ltd
5 October 2000


ABB Corporate Communications, Zurich         ABB Investor Relations, Zurich
Thomas Schmidt                               Pia Irell                         
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       ABB in new mobile telecom cooperations with Nokia and Ericsson

    Big business potential in building mobile telecommunications networks

Zurich, Switzerland, October 05, 2000 - Global technology group ABB said today
it has formed separate agreements with Nokia and Ericsson to build
new-generation mobile telecommunications networks, highlighting ABB's strategy
to
become a major player in IT infrastructure.

ABB said both agreements are aimed at offering rapid execution of so-called 3G
(3rd generation or UMTS) mobile communications networks currently under
development in most European markets.

In the Nokia cooperation, covering Europe, the Middle East and Africa, ABB will
handle network planning, site acquisition, construction works, installation and
commissioning, based on products and systems from Nokia Networks. Ericsson,
already chosen by 14 operators as 3G supplier, has appointed ABB a Global
Authorized Service partner in the mobile communications field, with similar
network building responsibilities.

We are proud to be associated with Ericsson and Nokia, and we feel we bring a
unique combination of skills to these partnerships,' said Goran Lindahl,
ABB's President and CE0. 'As ABB expands into IT infrastructure for mobile,
wireless and Internet communications, we build on a high-tech tradition and a
proven ability to meet high demands for reliability. Moreover, in ABB we have
solid know-how in both the financing and execution of large infrastructure
projects.'

3G networks can transmit large amounts of data to cellular phones and other
wireless handheld devices. This allows a wide range of IT applications from
broadband multimedia on the Internet to industrial control software programs
- to be freed from conventional fixed points of access, such as desktop
computers.

ABB has designed and implemented - and is servicing - telecommunications,
infrastructure for both fixed and wireless communications in the Nordic
countries, Australia, Austria, the Benelux countries, the Czech Republic,
Germany, Poland, Switzerland and other countries in Europe.

ABB delivers the full range of project management and installations for
telecommunications base stations and Internet Data Centres (so-called points of
presence, or P0Ps) - including lighting, security, temperature control, and
emergency power - as well as systems to ensure a reliable power supply.

In total ABB has some 2,000 people working in the telecommunications area,
generating revenues of approximately US$ 500 million a year.

Two weeks ago, ABB won a US$ 150-million order to design, maintain and upgrade
the Telecommunications Access Network in five of Australia's States and
territories. ABB is also currently building Internet data centers in several
European countries, and is in a consortium - made up of Deutsche Telekom's
mobile communications unit and Utfors - applying to build a broadband wireless
network for Sweden.

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 160,000
people in more than 100 countries.