Re Contract

ABB Ltd
16 January 2003

ABB signs US$ 50 million service agreement in
New Zealand

Group's largest maintenance agreement for pulp and paper industry



Zurich, Switzerland, January 16, 2003 - ABB, the leading power and automation
technology group, has signed a full service maintenance agreement with Carter
Holt Harvey, an Australian-Asian forest products. The five-year contract, worth
US$ 10 million annually, covers all maintenance services for the Kinleith mill
in Tokoroa, New Zealand.

'This is our single largest pulp and paper maintenance contract, and highlights
the need for specialized and complete service and maintenance solutions in
process and manufacturing industries,' said Dinesh Paliwal, head of ABB's
Automation Technologies division. 'Carter Holt Harvey chose ABB because we have
a strong automation presence in paper mills around the world, which means we can
help bring the industry's best practices to Kinleith.'

ABB expects to increase productivity and reduce costs for Carter Holt Harvey by
streamlining maintenance functions and increasing plant efficiency. Peter
Springford, CEO of Carter Holt Harvey, said: 'This contract will play an
important role in giving the mill a sustainable future.'

The agreement will cover all electrical maintenance services, including power
and transmission distribution, and devices such as motors and drives at the
mill, as well as management of spare parts and inventory. The contract starts
this month.

Carter Holt Harvey, Ltd. which is majority owned by the world's largest paper
company, International Paper, is Australasia's leading forest products company
producing wood products, pulp and paper, tissue and packaging. Its Kinleith mill
produces about 300,000 tons of paper and 270,000 tons of pulp annually.

ABB is a 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
146,000 people.






                      This information is provided by RNS
            The company news service from the London Stock Exchange