Stmnt re New Structure

ABB Ltd
11 January 2001



ABB Media Relations 
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ABB realigns organization around customers

Early response to new market demands, aimed at fuelling growth

-  First in its industry to organize fully around customers instead of products
-  New top management team appointed 
-  New Ventures division created


Zurich, Switzerland, January 11, 2001 - ABB announced today it is transforming
its worldwide enterprise around customer groups, aiming to boost growth by
helping its customers become more successful in a business environment of
accelerating globalization, deregulation, consolidation and eBusiness.

ABB replaces its current business segments with four customer segments serving
end users, working closely with two product segments that also serve all
external channel partners, and a financial services segment. This
transformation, which will not incur any restructuring charges, will be
implemented in most markets by mid-year 2001. ABB is the first in its
industry to fully organize around customers rather than technologies.

The four customer segments - Utilities, Process Industries, Manufacturing and
Consumer Industries, and Oil, Gas and Petrochemicals - will provide end users
with faster and easier access to the full range of ABB's products, services and
solutions.

The two product, segments - Power Technology Products and Automation
Technology Products - will cover all generic product needs within the ABB
Group. All products will be developed to fit into a common Industrial IT
architecture. The product segments will also directly serve external channel
partners, such as distributors, wholesalers, system integrators and OEMs 
(original equipment manufacturers).

The Financial Services segment continues to provide services and project support
for ABB and for external customers.

The realignment was announced today by Jorgen Centerman, who took over as
President and CEO on January 1. He also announced a new Executive Committee,
effective as of January 15, formed to drive the next stage of ABB's
development. Six of the 11 Executive Committee members are new.

A new division, New Ventures Ltd., has been created to act as an incubator for
new businesses. 'New technologies continue to be a key driver of growth for
us. Our R&D organization therefore remains critical. In addition, we're setting
up New Ventures Ltd. to identify, invest in and to accelerate the development of
new business opportunities, Centerman said.

'The new structure allows us to grow faster by more easily delivering value
to our customers,' said Centerman 'We have a unique, three-way combination
First, our superior domain expertise - that's our vast knowledge of our
customers' market environment, their business processes and success factors.
Second, our world-class products and services. Third: collaborative commerce
solutions that link the value chain all the way from suppliers through
manufacturers to end users. This combination enables us to create comprehensive
Industrial IT offerings, with all products and services conforming to a common
architecture.'

At the annual press conference on February 13, ABB will, as announced earlier,
present its 2000 financial results according to US Generally Accepted Accounting
Principles (US GAAP). The results will be reported according to the segment
structure in place before today's announcement. Details on ABB's strategy and
how the new structure, together with US GAAP, provide greater transparency, will
also be outlined on February 13. The plans to list ABB shares on a U.S. stock
exchange remain on schedule.

Centerman said: We are responding to a silent revolution in the market that is
completely changing the business landscape. Faced with increasing complexity and
speed - much of it driven by the Internet - our customers want clarity and
simplicity. Our new structure will make us easier to do business with and fully
reflects our new vision of creating value and fuelling growth by helping our
customers become more competitive.'

He said the Internet has created new opportunities for companies to collaborate
with and deliver value to their customers. 'Instead of the mass marketing of the
past, the Internet allows us to interact with our customers one-on-one and
deliver customized information, products and services on a massive scale,' he
said. 

Highly flexible mass customization will require common business and management
processes worldwide. That will be driven and supported by a new segment,
represented on the Executive Committee, called Corporate Processes.

To make sure the new structure is implemented quickly worldwide, a function has
been created on the Executive Committee called Corporate Transformation.

'Common business and management processes are essential in a truly
customer-driven enterprise. This will over time provide a single interface
between us and the customer and free up our people to focus on creating greater
value for our customers,' Centerman said. ' This is what our customers request
today to capitalize on technology advances and rapidly changing markets in order
to be more competitive. This, in turn, will fuel growth for ABB. At the same
time, it creates value for our shareholders and for the communities and
countries where we operate.'


The New Executive Committee

In addition to Jorgen Centerman, 49, as President and CEO, and Renato Fassbind,
45, the Chief Financial Officer, the new ABB Executive Committee has the
following members:

Description                                  Name (* indicates new member)

Process Industries: serving customers        Dinesh Paliwal,* 43, Indian, 
in industries such as pulp and paper,        presently head of ABB's Pulp, 
printing, mining and metals, cement,         Paper, Mining and Minerals 
chemicals, petrochemicals, pharmaceuticals,  business 
and marine


Manufacturing and Consumer Industries:       Jan Secher,* 43, Swedish, presently
serving the full range of product            head of ABB's Flexible Automation 
manufacturers, as well as infrastructure     business 
customers in the telecommunications,
airports, postal and distribution, 
and building sectors 

Utilities: serving electric,                 Richard Siudek,* 54,  
gas and water utilities                      American/British, presently 
                                             head of ABB's Power 
                                             Transmission and
                                             Distribution businesses 
                                             in the U.S. 

Oil, Gas and Petrochemicals:                 Gorm Gundersen, 56,
serving the hydrocarbon industries,          Norwegian, presently head of
from resource recovery to processing         the Oil, Gas and Petrochemicals 
                                             segment 

Automation Technology Products:              Jouko Karvinen, 43,
a complete range of hardware and software    Finnish, presently head 
products for automation and control,         of ABB's Automation Segment
robotics, sensoring, metering, drives,
motors, switches and accessories, and 
other low-voltage products and
technologies 

Power Technology Products:                   Peter Smits,* 49, German,
a complete range of transformers,            presently head of ABB's
switchgears, apparatus, cables, as well      Distribution Transformer
as other products and technologies for       business
high - and medium - voltage applications
                                       
Financial Services: Insurance, structured    Jan Roxendal, 47 Swedish
finance, development and ownership of        presently head of the
private infrastructure projects, and         Financial Services segment
treasury services to ABB companies 

Corporate Processes: Implementation of       Andrew Eriksson, *54,
common processes and groupwide               Swiss/South African,
infrastructure in areas such as              presently head of ABB's
quality control, supply chain management,    Medium-Voltage Equipment business
eBusiness development, and information 
systems

Corporate Transformation: Support senior     Eric Drewery,* 61,
management to implement the new              British, presently head of
customer-based organization worldwide        ABB in the U.K.

The New Ventures business will be headed by Juho Lipsaner, 39, currently
business controller for the Automation segment.

Sune Karlsson, 54, head of the previous Power Distribution and Power         
Transmission segments, will focus on large projects as well as developing
business in key emerging markets, reporting directly to the CEO, as a Senior
Corporate Officer.

Markus Bayegan, 56, continues as chief technology officer at the head of Group
technology, research and development. Bayegan will continue to report directly
to the CEO, as a Senior Corporate Officer. He takes on an additional new role,
on the Board of Directors of the New Ventures division.

ABB (www.abb.com) serves manufacturing, process and consumer industries,
utilities, the oil and gas sector and infrastructure markets, with 160,000
employees in more than 100 countries.