Re Contract

ABB Ltd
01 October 2003

ABB contract in Russia's Far East worth more than US$ 30 million



Major share of Sakhalin ll telecommunications project



Zurich, Switzerland, October 1, 2003 - ABB, the leading power and automation
technology group, said today it has won a major share of the contract to create
a telecommunications system for the giant Sakhalin II oil and gas development on
Sakhalin Island, in eastern Russia.



ABB's participation in the project is worth more than US$ 30 million.



'This award represents a breakthrough for our telecommunications business in the
oil and gas markets, especially in the Commonwealth of Independent States,' said
Dinesh Paliwal, head of ABB's Automation Technologies division. 'The Sakhalin
development is attracting the largest direct foreign investment in Russia to
date, and ABB will play a major role in its completion.'



Under the contract, ABB is one of two principal subcontractors to Summit
Kriljon-Service Telecom, a joint venture company established by the Japanese
Sumitomo Corporation and the Russian telecommunications engineering company
Kriljon-Service for the Sakhalin II telecommunications project. Summit
Kriljon-Service Telecom is the project leader responsible for project services
and contract maintenance.



ABB is responsible for project management, engineering, quality assurance,
health, safety and environment, as well as supply, installation and
commissioning of all telecommunication equipment for Sakhalin II. In July 2002,
ABB signed a US$ 987 million contract with Exxon Neftegas Limited to develop
onshore oil and gas processing and well-site support facilities for Sakhalin 1.



For Sakhalin II, ABB will develop 18 different telecommunications systems for
three offshore platforms; an onshore processing facility, LNG plant and oil
export terminal; 800 kilometers of pipeline and about 110 valve stations; two
ports; temporary telecom systems for six construction camps; and infrastructure
upgrades.



The main project office will be in Bergen, Norway, for the engineering phase,
and move to Sakhalin Island for installation and commissioning. Russian
engineers from Kriljon-Service will work alongside their Norwegian counterparts
to maximize knowledge transfer and information exchange.



ABB (www.abb.com) 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 around 100
countries and employs about 133,000 people.






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