Re Contract

ABB Ltd
28 July 2003

ABB outsources information systems to IBM
Ten-year contract helps ABB significantly reduce costs


Zurich and Paris, 28 July, 2003 - ABB and IBM said today that they reached a
10-year agreement to outsource close to 90 percent of ABB's information systems
infrastructure operations - including the transfer to IBM of more than 1,200
employees.

The agreement is valued at US$ 1.1 billion and builds on a well-established
relationship between the two companies. The contract is part of ABB's strategy
to focus on its core industrial businesses and will help ABB significantly
reduce costs over the period. Combined with pilot contracts signed in the fourth
quarter of 2001 for approximately $US 600 million, the full value of the
relationship will approach $1.7 billion over 10 years.

'This long-term deal allows us to significantly take down costs, while
benefiting from IBM's global expertise,' said Peter Voser, ABB's chief financial
officer.  'It benefits both ABB and IBM,' he said.

IBM Global Services will take responsibility for the operation and support of
information systems (IS) infrastructure in 14 countries in Europe and North
America - representing some 90 percent of ABB's IS infrastructure. The deal
includes taking over the management of servers, operating systems, corporate
networks, personal computers, and help desks.

Dominique Cerutti, general manager of IBM Global Services, Europe, Middle East
and Africa, said: 'In today's tough economic climate, this agreement represents
a strong statement by ABB that it intends to expand its position as a leader in
the manufacturing industry. This is a powerful alliance of leading players which
will not only transform ABB's IT infrastructure, but over time it will bring to
bear the full capabilities of IBM's research, consulting, and industry knowledge
to create tangible, long term, business advantage for ABB.'

In addition to the 510 ABB employees already transferred under the Sweden and
India pilots, the agreement will include the transfer of approximately 780 ABB
employees to IBM. In most cases, this transfer of responsibilities will take
place in September 2003. A small team will stay with ABB to oversee and
coordinate activities with IBM.




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 135,000 people.

IBM Global Services is the world's largest information technology services and
consulting provider, generating over $36 billion in 2002. Approximately 180,000
professionals serve customers in over 160 countries, providing the entire
spectrum of customers' e-business needs -- from the business transformation and
industry expertise of IBM Business Consulting Services to hosting,
infrastructure, technology design and training services.  IBM Global Services
delivers integrated, flexible and resilient processes -- across companies and
through business partners -- that enable customers to maximize the opportunities
of an on-demand business environment



For further information please contact:


Thomas Schmidt
ABB Corporate Communications, Zurich
Tel: [phone]
Fax: [phone]
[e-mail]


Gillian Kenny
Media Relations Manager
IBM Business Consulting Services and IBM Global Services, EMEA
Tel: [phone]
Mobile: [phone]
Email:  [e-mail]


ABB Investor Relations:
Switzerland: Tel. [phone]
Sweden: Tel. [phone]
USA: Tel. + 1 203 750 7743
[e-mail]




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