2nd Quarter & Interim Results

ABB Ltd
20 July 2000



For more information, contact

ABB Corporate Communications, Zurich    ABB Investor Relations, Zurich
John Fox                                John Chironna
Tel:  [phone]                    Tel: [phone]
Fax:  [phone]                    Fax: [phone]
[e-mail]                     [e-mail]

  
ABB reports continued growth in first six months
 
Zurich, Switzerland, July 20, 2000 - Global technology company ABB said today
the continued solid growth in earnings, margins and orders in the first half  of
2000 reflected its focus on knowledge-based businesses, Industrial IT and
service.  Net income rose 16 percent (23 percent in local currencies) compared
to the same period last year, earnings per share reached US$3.23 from US$2.80,
and cash flow jumped 46 percent


- Net income up 16 percent, 23 percent in local currencies
- Operating margins improve for all industrial segments
- Operating margin for Automation up to 8.6 percent from 6.7 percent
- Operating cash flow increased by 46 percent
- Orders up 6 percent, 13 percent in local currencies


The company said it continues to integrate intelligence and Internet
capabilities into more of its products, systems and services across ABB
from Power Transmission to Building Technologies and Financial Services.  ABB
also launched a new global alternative energy business in anticipation of strong
growth in demand for smaller-scale, cleaner and more efficient electricity
generation and delivery.

US$ in millions             Jan-June  Jan-June    Change in    Change in local
unless otherwise                2000      1999 2) nominal 1)   currencies 1)
stated

Orders Received               13,447    12,680         +6%        +13%
Revenues                      10,762    11,505         -6%         +1%
Operating Earnings after 
 Depreciation 3)               1,038     1,002         +4%
Net Income                       970       839        +16%
Earnings per Share (US$)        3.23      2.80        +16%

1) For the above reported items, changes in exchange rates had a negative 
   effect of about 7 percent for the Group.

2) Restated to reflect the effect of the discontinued operations within ABB's   
  former Power Generation Segment A comparison to the figures reported in 1999  
 can be found in the Appendix.

3) Not comparable to historical reporting as in accordance with International
   Accounting Standards, capital gains from discontinued operations are         
  reported on a separate line in the income statement and consequently are not  
 included in operating earnings.

'These results clearly show that by transforming our business portfolio
and increasing cost-efficiency in our operations, we are creating and sustaining
significantly more value,' said ABB President and CEO Goran Lindahl. '0perating
earnings, when expressed in local currencies to reflect the real performance of
the businesses, once again hit double-digit growth and cash flow also continued
to develop positively. And our return on equity reached 34 percent, up about 4
percentage points compared to last year.

Lindahl said orders were in line with ABB's expectations, and as economies in
emerging markets and Europe continue to grow, the top line should improve 
further in the second half of the year.

'Our new platform of higher-value businesses, technology leadership and ABB's
strong market positions across the whole range of our businesses will allow us
to continue delivering more value to our shareholders,' he said. Lindahl added
that the planned U.S. listing is on schedule for the second half of the year and
preparations for the US-GAAP accounting are proceeding well.

ABB's divestment of its nuclear activities to BNFL and its classical large-scale
power generation business to ALSTOM further reduced the technology Group's asset
base.

Continued acquisitions of fast-growing service businesses underscored ABB's 
pledge to double its income from service activities. In recent months,  ABB 
streamlined its own ordering processes using Internet technologies and continued
to move standard products and services online. ABB created several new
initiatives in eBusiness.

Highlights of the results include:

- The margins were higher in all industrial segments, especially in Automation, 
 where it grew to 8.6 percent up from 6.7 percent in the same period last       
year. ABB's increased focus on knowledge and service businesses, ongoing cost  
reductions, and better price quality led to an increased operating margin of   
9.6 percent, up from 8.7 percent.  These figures have been restated to         
reflect the divestitures of ABB's nuclear business and 50-percent share in     
ABB ALSTOM POWER - see appendix for reconciliation.

- More than 20-percent operating earnings growth in the Power Distribution
  and Automation segments as a result of the ongoing shift toward more
  profitable IT and full package solutions.

- Orders rose in all segments when reported in local currencies, led by a
  more than 40-percent increase in Oil, Gas and Petrochemicals and a 
  23-percent increase in Power Distribution.

- A strong order backlog, especially in the Power Transmission segment, which   
 will flow through into revenues in the coming quarters.

Revenues were down 6 percent, or slightly up when expressed in local currencies.
 The company attributed the development to, among other things,   last year's
low order intake in the Oil, Gas and Petrochemicals segment and the divestiture
of ABB's standard cables business late last year (reducing revenue growth by
about 4 percent).

In local currencies, orders in Europe grew by 14 percent compared to the same 
period last year and orders for base businesses and services increased by 16
percent. These trends are in line with ABB's expectation that economic growth in
Europe would begin to benefit its order book as of the middle of this year. This
will support growth of revenues for the next few quarters for all segments
except Oil, Gas and Petrochemicals, which will lag in 2000.

New key ABB technologies were launched onto the market in the first half 
including a revolutionary wind power solution, testing systems for the
pharmaceutical industry and novel deep-sea technologies.

Several major orders were won in the second quarter, including a US$250- million
order to build the second phase of a power transmission system connecting
electricity networks in Argentina and Brazil and an US$ 80-million turnkey order
to build a new indoor high-voltage sub station in downtown London. ABB won a US$
100-million order in the new alternative energy business  from Scottish and
Southern Energy, a major utility in the United Kingdom, for ten combined heat
and power (CHP) plants.

ABB purchased a leading supplier of distribution transformers in Brazil, through
which it is transferring new technology into a key emerging market. The company
also concluded the sale of its 50-percent share in ABB ALSTOM POWER to ALSTOM,
and the sale of its nuclear activities to BNFL, which contributed US$ 313
million, in earnings from discontinued operations i.e slightly above the 1999
figure for discontinued operations.

Growth in service

ABB continued to expand the service component of its business portfolio. The
company acquired a 35 percent stake in the Swedish Export Credit Corporation
(SEK). ABB's investment supports SEK's ongoing expansion of its product range
and geographic base by providing access to new markets through ABB's existing
global network. SEK and ABB will also be able to exchange expertise in capital
market activities, structured finance and insurance,  and can share information 
technology resources in areas like credit risk management and market analysis.

ABB also bolstered its service activities in the oil and gas sector with the 
purchase of Norwegian-based Umoe ASA. Umoe has a long track record in the
Norwegian offshore market with a strong focus on modification and maintenance  
services, including electrical installations. ABB intends to use its global
scope to expand Umoe's activities to the worldwide oil and gas market, while
supporting further growth of ABB's share of the offshore oil and gas service
market in general and in particular the Norwegian market.

Smaller service acquisitions were made in other markets, including a company
providing diagnostic and maintenance services to process industries in South
Africa.

eBusiness
ABB's approach to eBusiness is to use Internet technologies to build a bridge 
between the classical and new economies, putting intelligence, efficiency and
more functionality into existing products, creating new products, and developing
new channels to market.

In the second quarter of 2000, ABB entered an alliance with PaperLoop.com
(www.paperloop.com) an online paper industry marketplace, to jointly develop a
new web portal for the pulp and paper industry. ABB said development is aimed at
creating a portal to put technical information databases online, offer
consulting services via the Web, and provide industrial software that customers
can download or use directly online.

In May, ABB acquired a minority stake in Capclear (www.capclear.com), an
Internet-based clearinghouse for business-to-business Internet exchanges. Their
services minimize risks and reduce transaction costs of internet trade.         

As previously announced, ABB intends to invest US$ 1 billion in Industrial IT,
eBusiness, and related activities by the end of 2001, and have 30 percent
of its standard products and services online by the end of this year and
100 percent by the end of next year. Further, ABB expects to significantly 
expand its Web-based product and service offerings to a number of key customers
this year.

Alternative energy
In June, ABB launched a new business to deliver alterative energy solutions
worldwide. Demand for alternative energy sources and  small-scale power
generation - wind farms, fuel cells, combined heat and power plants using
miniature gas turbines - has been sparked by deregulation for power suppliers
to put a higher priority on profitability.  Small-scale power, because it
requires less up-front capital investment, often meets this need better than
conventional large power plants. In addition, governments around the world 
have committed to cut greenhouse gas emissions in line with the 1997 Kyoto 
Protocol on global warming,  which also promotes small-scale alternative energy
solutions.

In anticipation of this growing demand, ABB unveiled its new wind power
technology, called the WindformerTM.  The Windformer will enable the economical
development of wind farms with outputs up to 300 megawatts (MW) or more - 
equivalent to a medium-sized fossil-fuel power plant.

The Windformer also reduces power losses and can be used to connect wind farms 
directly to larger power grids, even from offshore.  ABB is also working with
DuPont (USA) to develop a more complete fuel cell solution and Volvo (Sweden) to
market a smaller,  smarter and more powerful microturbine.

ABB said the US$100 million order to build natural gas-fired CHP plants  - 
small-scale units that produce both electricity and heat  - over the next 
1 1/2 years throughout the U.K., confirmed the move into alternative energy
solutions.

Bringing new technologies to market 
In addition to breakthroughs in alternative energy, ABB is the leading developer
of technology in areas like oil, gas and petrochemicals, sensors and analytical
systems,  software engineering, power electronics, and microengineering and
nanotechnologies.

ABB supplied the drilling riser, wellhead and  blowout preventor control system
for the world's deepest subsea well, 2,777  meters beneath the sea off the coast
of Brazil. ABB also started up and is operating the world's First subsea
separator at Norsk Hydro's Troll Field off the coast of Norway. The System
separates water from the oil stream and injects it back to the well. It can
improve oil recovery rates by as much as 50 percent and reduces environmental
impacts,  lowering total field investment,  operating costs and
development time.

In the growing market for analytic systems for food and beverages, and  
pharmaceuticals, ABB launched infrared testing systems that allow fast sampling
of a large number of substances. ABB has applied its micro-engineered catalyst 
technology to the environmental control field. A test reactor has been installed
to improve the performance of a high-dust pollution control unit at a
2000-megzwatt (MW)  coal-fired power plant in the U.S.

To open new markets in remote monitoring and control of power distribution
networks, ABB launched a substation design that boasts an integrated Web server
and a wireless communication system. The product allows an operator to monitor
and control the substation via the Internet.

ABB's breakthrough Azipod technology, an electrical propulsion system for ships
with a 360-degree steering angle, is now available for smaller ships in the
power range up to 5 megawatts (MW). This technology, which helps navigate many
of the largest ships around the world, captures both simplicity of design and
strength of functionality.

Cash Flow and other key data
In line with ABB's ongoing efforts to create more value through higher
cash flow generation, net cash flow from operating activities increased 
by 46 percent compared to first six months 1999, reaching US$ 413 million
(1999: US$ 282 million).

The return on capital employed for the first six months 2000 reached 17.0
percent (1999: 16.0 percent) and return on equity improved to 34.4 percent
(1999: 30.8 percent). The order backlog amounted to US$ 14,906 million at end of
June (December 31, 1999: US$ 13,245 million).

The number of employees at the end of June was 161,401(end of June 1999:
174,601). Adjusted for acquisitions and divestitures, the number of employees
decreased by 5 percent.

Segment and regional review
ABB Group reports in U.S. dollars and the strengthening dollar had a major
negative effect on the reported figures for the first half year 2000 when
translated from local currencies. The following discussion refers to the
development in local currencies.

Power Transmission orders rebounded on improved conditions in most major
markets during the second quarter. Several large interconnection projects
came to fruition and ABB capitalized on increased demand for power transformers
and service and support. The operating margin improved to 11.4 percent from 10.5
percent last year. Earnings for the segment were flat, reflecting the
divestiture last year of the standard cable business. Deregulation is now
beginning to fuel demand in the power transmission market, as it has already
done in the power distribution sector. Although demand may be sluggish in the
first phase of deregulation, as customers are cautious with investments in an
uncertain market, it is expected to grow rapidly in continental Europe. This is
especially true in service, retrofit and IT applications, where customers
can obtain good return on investments while optimizing the use of existing
assets.

Deregulation continued to fuel the Power Distribution business as orders
and earnings increased substantially, 23 percent and 25 percent, respectively.
Orders were supported by strong demand for intelligent system solutions and
transformers. The operating margin increased to 7.5 percent from 6.9 percent
last year. Demand for products, services and solutions continued to grow,
especially in North America. The business also experienced strong demand in
Asia, where economic recovery continues.

Earnings in Automation were up 27 percent, driven by the successful integration
of Elsag Bailey, higher value projects and improved demand for instrumentation
and control products. The segment also reduced its cost base substantially and
continued to improve internal efficiency and quality management. Operating
margins were sharply higher, 8.6 percent compared to 6.7 percent for the first
six months of 1999. Orders were about 8 percent higher in all major businesses,
driven by improved demand in the U.S., Europe and Asia. The product business
showed strong growth in all regions, while the large project business was still
weak.

Oil, Gas and Petrochemicals' orders continued to surge - up 47 percent - in
large part reflecting higher demand in the downstream petrochemicals market. As
forecast, earnings suffered from last year's low order intake. The operating
margin was slightly up at 5.8 percent compared to 5.5 percent the first six
months of 1999. The increased orders should flow through to revenues in the
fourth quarter of this year and in particular in 2001. Higher bidding activity
in both upstream and downstream markets indicates that demand should remain
robust for the rest of the year.

Earnings for Building Technologies increased 12 percent. Low-voltage products
and systems benefited from improved demand. The operating margin reached 7.4
percent compared to 6.8 for the previous year. Orders were up 7 percent, with
increased order intake in all business areas, however the service business area
lagged in orders and revenues due to periodization of several large full service
contracts. The markets in the Asia, Middle East and Africa showed good growth
and our markets for installation of Internet and mobile telecommunications
systems are growing rapidly. The shift from low-margin general contracting to
high-tech installations is continuing.

Financial Services' earnings were in line with last year's level. The segment
continued its strategy to invest in fast-growing knowledge and Internet-based
businesses. The acquisition of the share of SEK supports the segment's
specialization in long-term export finance and finance solutions to sectors such
as telecommunications, automotive, transportation, energy, and process
industries like pulp and paper and petrochemicals. SEK employs some 90 people
and has total assets of approximately US$ 20 billion, mostly representing
securities with bank or government guarantees.

European markets continued to improve, with orders up 14 percent in local
currencies. Most major markets in Central and Southern Europe showed strong
growth. Asia's orders rebounded during the second quarter, particularly the
product business. But over the first six months, orders were down compared to
last year, when several large orders were recorded in the corresponding period.
The Middle East and Africa showed good growth, with increased activities in
product and service businesses.  Demand in North America continued to grow, with
the liberalization of the power market pushing orders higher. In the deregulated
markets of South America, demand continued to grow for regional power
interconnections and demand in product businesses improved greatly.

Change in accounting
During the second quarter of 2000, ABB disposed of the former Power Generation
segment, which included its investment in ABB ALSTOM POWER N.V. and its nuclear
business. According to International Accounting Standards (IAS), disposing of a
business segment should be accounted for as discontinued operations.
Accordingly, the after-tax income of the former Power Generation segment has
been combined into a single line in the Income Statement called 'Income from
discontinued operations, net of tax' for both 2000 and 1999, respectively. Also
included in this line are capital gains, net of tax, from the disposition of the
Power Generation segment (in 2000 and 1999) and Adtranz (in 1999), previously
reported in Operating Earnings as 'unusual items.'

Outlook
For the full-year 2000, ABB's orders are expected to show a good increase.
Revenues in the second half are expected to increase compared to the same period
last year. Operating earnings are expected to increase from last year's level
and net income will continue to be well above 1999's performance. Cash flow from
operating activities is expected to grow faster than operating earnings as the
Value Based Management initiative, including the capital reduction program, is
further gaining pace. The power generation and nuclear divestitures do not
affect the outlook negatively for this year, nor the longer-term targets of 6-7
percent average annual growth during 2000-2003 and an operating margin of 12
percent by 2003.

The ABB Group 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.

This press release includes forward-looking information and statements that are
subject to risks and uncertainties that could cause actual results to differ.
These statements are based on current expectations, estimates and projections
about global economic conditions, the economic conditions of the regions and
industries that are major markets for ABB Ltd and ABB Ltd's lines of business.
These expectations, estimates and projections are generally identifiable by
statements containing words such as 'expects', 'believes', 'estimates' or
similar expressions. Important factors that could cause actual results to differ
materially from those expectations include, among others, economic and market
conditions in the geographic areas and industries that are major markets
for ABB's businesses, market acceptance of new products and services, changes in
governmental regulations, interest rates, and fluctuation in currency exchange
rates. Although ABB Ltd believes that its expectations reflected in any such
forward looking statement are based upon reasonable assumptions, it can give no
assurance that those expectations will be achieved.


ABB Group

Consolidated Income Statement

(US$ in millions)              Notes      Year to date        April - June
                                         January - June 
                                         2000    1999 1)      2000   1999 1)

Revenues                                 10,762   11,505      5,689   6,117

Material expenses                        -4,410   -4,759     -2,413  -2,564

Personnel expenses                       -3,511   -3,721     -1,759  -1,804

Other expenses                           -1,677   -1,870       -953  -1,030

Changes in work in progress and 
  finished goods                            200      215         72     -40

Depreciation of fixed assets               -373     -409       -186    -208

Unusual items                                47       41         23      28

Operating Earnings after Depreciation     1,038    1,002        473     499

Earnings from equity accounted companies      6       -2          6       0

Dividend income                               8        7          5       4

Interest income                             186      192         81     126

Interest expense                           -306     -350       -139    -161

Exchange differences                         18        9         18       6

Income from continuing operations before 
  taxes and minority interest               950      858        444     474


Income taxes                               -276     -253       -121    -129

Income from continuing operations before 
minority interests                          674      605        323     345


Minority interests                          -17      -10        -14      -8

Net Income from continuing operations       657      595        309     337


Income from discontinued operations, 
  net of tax                        1,5     313      244        280     200

Net income                                  970      839        589     537

Basic and diluted earnings per share, 
 in US$ 2)                                 3.23     2.80       1.96    1.79

1) Restated to reflect the effect of the discontinued operations as
described in Notes 1 and 5.

2) Calculation based on 300,002,358 registered shares.

ABB Group

Condensed Consolidated Balance Sheet

(US$ in millions)           Note          June 30,    June 30,    Dec. 31,      
                                            2000      1999  1)    1999 1)

Assets

Cash and cash equivalents                   6,809       7,026       6,288

Other current assets                       11,542      11,583      11,591

Total current assets                       18,351      18,609      17,879

Fixed assets                               10,476      11,395      11,456

Total Assets                               28,827      30,004      29,335


Liabilities and Equity

Current liabilities           3            14,747      17,597      15,893

Non-current liabilities       3             8,140       7,132       7,517

Minority interests                            274         338         317

Stockholders' equity                        5,666       4,937       5,608

Total Liabilities and Equity               28,827      30,004      29,335

1) Restated to reflect the effect of the discontinued operations as 
described in Notes 1 and 5.



Condensed Statement of Changes in Equity

(US$ in millions)                          Note           January - June
                                                          2000      1999
Equity as of December 31, previous year
(1999 and 1998, respectively)                             5,608    5,959


Inclusion of ABB AB and ABB AG                               --       34

Changes in accounting principles and other items 1)         -23     -893

Adjustment for treasury shares 2)                          -184       --

Dividend payments                                          -541     -503

Translation differences                     4              -164     -499

Net income (6 months)                                       970      839

Equity as of June 30
(2000 and 1999, respectively)                             5,666    4,937

1) Introduction in 1999 of revised IAS 19 on employee benefits.

2) Represents the total purchase price of ABB Ltd shares owned by Group
companies at June 30, 2000. These treasury shares are netted against
equity following the introduction of IAS SIC 16.



ABB Group

Condensed Consolidated Statement of Cash Flows

(US$ in millions)                                 Year to date
                                                  January - June
                                                  2000    1999 1)
Cash Flow from Operating Activities

Income from continuing operations before taxes 
 and minority interest 2)                          950     858

Adjustments of earnings to operating cash            73    -44

Changes in operating assets and liabilities         -455    -384

Taxes paid                                          -155    -148

Net Cash Flow from Operating Activities              413     282


Cash Flow related to Investing Activities         -1,011  -2,115


Cash Flow related to Financing Activities           -446     -39


Cash provided from sale of discontinued operations 1,682   1,972


Effects of translation differences on cash and 
 cash equivalents                                   -117    -338


Net Change in Cash and Cash Equivalents              521    -238


Cash and cash equivalents - beginning of year      6,288   7,264

Cash and cash equivalents - end of interim period  6,809   7,026

1) Restated to reflect the effect of the discontinued operations as
described in Notes 1 and 5.

2) Actual interest received/paid does not differ materially from
'Interest Income/Expense' as included in income from continuing
operations before taxes and minority interest and is thus not explicitly
shown in the above presentation.



Selected Notes to the Consolidated Financial Statements

Note 1, General and Scope of Consolidation

The Group's accounting principles are based on International Accounting
Standards (IAS) in effect for financial periods beginning on January 1,
2000. The Principles for Consolidated Financial statements are described
in the 1999 year-end Consolidated Financial Statements of ABB. The
interim report and notes are unaudited.

Discontinued operations
During the second quarter 2000, ABB disposed of its former Power
Generation Segment, which included its nuclear business (refer to Note 5)
and its investment in ABB ALSTOM POWER NV . The after tax income of the
disposed segment is shown in a single caption as discontinued operations
both in the 2000 and 1999 six months figures.


Note 2, Geographic and Segment Information

Data per Region                     Orders              Revenues
(US$ in millions)                   Received
                                    January - June      January - June
                                    2000    1999 1)     2000    1999 1)

Europe                               7,297    7,151      5,963    6,549

The Americas                         3,303    2,525      2,585    2,651

Asia                                 1,473    1,703      1,340    1,318

Middle East and Africa               1,374    1,301        874      987

Total                               13,447   12,680     10,762   11,505

Data per Business Segment
(US$ in millions)                   Orders              Revenues
                                    Received
                                    January - June      January - June
                                    2000    1999 1)     2000    1999 1)

Power Transmission                   2,156    2,162      1,642    1,913

Power Distribution 2)                1,733    1,467      1,415    1,283

Automation 2)                        4,340    4,291      3,614    3,874

Oil, Gas and Petrochemicals          1,995    1,419      1,215    1,479

Building Technologies                3,372    3,425      2,887    3,030

Financial Services                     366      365        366      365

Various Activities/Corporate 2)        875      986        824      938

Sub-total                           14,837   14,115     11,963   12,882

Intra-Group Transactions            -1,390   -1,435     -1,201   -1,377

Total                               13,447   12,680     10,762   11,505

1) Restated to reflect the effect of the discontinued operations as
described in Notes 1 and 5 as well as the cancellation of an order in the
Power Distribution segment.

2) The Distributed Power business has been moved from Various Activities
to the Power Distribution segment. The nuclear activities in the
Automation segment were included in the sale to BNFL. 1999 figures are
restated accordingly.


Data
Per Business Segment
(US$ in millions)                   Operating Earnings       EBITDA 3)
                                    after Depreciation
                                    January - June           January - June
                                    2000      1999 1)        2000     1999 1)


Power Transmission                    188       201            232       253

Power Distribution 2)                 106        88            137       118

Automation 2)                         311       258            439       359

Oil, Gas and Petrochemicals            71        81            100       108

Building Technologies                 215       207            276       276

Financial Services                    176       187            187       196

Various Activities/Corporate 2)       -29       -20             42       101

Total                               1,038     1,002          1,413     1,411

1) Restated to reflect the effect of the discontinued operations as
described in Notes 1 and 5.

2) The Distributed Power business has been moved from Various Activities
to the Power Distribution segment. The nuclear activities in the
Automation segment were included in the sale to BNFL. 1999 figures are
restated accordingly.

3) Earnings Before Interest, Taxes, Depreciation and Amortization.


Note 3, Short-, medium-, long-term loans

(US$ in millions)             June 30, 2000  June 30, 1999 1)  Dec. 31, 1999 1)

Loans

Short-term loans                      3,212          5,281             2,910

Medium- and long-term loans           4,124          2,545             3,215

Total loans                           7,336          7,826             6,125

1) Restated to reflect the effect of the discontinued operations as
described in Notes 1 and 5.


Note 4, Main Exchange Rates

                                     Average          As of         As of
                                     January - June   June 30       December 31
                                     2000      1999   2000   1999   1999

Euro             US$ 1.00 = EUR      1.04      0.92    1.04   0.97   1.00

German mark      US$ 1.00 = DEM      2.04      1.80    2.04   1.89   1.95

Swedish krona    US$ 1.00 = SEK      8.78      8.25    8.78   8.47   8.53

Swiss franc      US$ 1.00 = CHF      1.66      1.47    1.63   1.55   1.60

For the first six months of 2000, changes in exchange rates had a negative
effect on the reported Income Statement items of about 7 percent compared to the
same period last year. The balance sheet figures were reduced on average
approximately by 3 percent due to the strengthening of the dollar when compared
to December 31, 1999 and 4 percent when comparing to June 30, 1999.


Note 5, Disposal of Power Generation activities, including the nuclear
business and Adtranz

In the first quarter of 1999, ABB completed the sale of its 50%
participation in ABB Daimler Benz Transportation to DaimlerChrysler.
Effective June 30, 1999, ABB formed a joint venture with ALSTOM, ABB
ALSTOM POWER NV, by contributing the net assets of its power generation
business (excluding nuclear and distributed power).

During the second quarter 2000, ABB sold its 50% participation in the
joint venture ABB ALSTOM POWER NV to ALSTOM for a cash consideration of
Euro 1.25 billion and its nuclear business to BNFL for a cash
consideration of US$ 485 million.

In the consolidated financial statements, all the above transactions are
reflected in the caption discontinued operations.

Summarized below are the Income Statement of the former Power Generation
segment, including the nuclear business, of January-June 1999 and the
Balance Sheet of the nuclear business as per December 31, 1999.

Income Statement
(US$ in millions)                                     Year to date
                                                      January - June
                                                             1999 1)
Revenues

Revenues                                                      3,736

Expenses, changes in work in progress, depreciation          -3,638

Unusual items                                                   -32

Operating Earnings after Depreciation                            66

Finance net                                                      -3

Income/loss before Taxes                                         63

Taxes and minority interests                                    -19

Net Income                                                       44

1) Figures referring to the former Power Generation segment.


Balance Sheet
(USD in millions)                                      December 31
                                                            1999 1)

Current assets                                                 301

Fixed assets                                                   166

Total Assets                                                   467


Current liabilities                                            135

Non-current liabilities                                        246

Stockholders' equity                                            86

Total Liabilities and Equity                                   467

1) Figures referring to the nuclear business contained in the Annual
Report 1999.


ABB Group

Consolidated Income Statement

Reported and restated figures for 1999 to reflect the effect of the
accounting for the discontinued operations.

(US$ in millions)                    Year to date         Year to date
                                     January - June       April - June
                                     1999 1)   1999 2)    1999 1)    1999 2)

Revenues                              11,505    11,778      6,117     6,258

Material expenses                     -4,759    -4,803     -2,564    -2,566

Personnel expenses                    -3,721    -3,827     -1,804    -1,893

Other expenses                        -1,870    -1,923     -1,030    -1,000

Changes in work in progress and 
  finished goods                         215       214        -40       -46

Depreciation of fixed assets            -409      -419       -208      -213

Unusual items                             41       281         28       233

Operating Earnings after Depreciation  1,002     1,301        499       773

Earnings from the defined power 
 generation business                      --        51         --        46

Earnings from equity accounted companies  -2        -2          0         0

Dividend income                            7         7          4         4

Interest income                          192       192        126       111

Interest expense                        -350      -353       -161      -165

Exchange differences                       9         9          6         7

Income from continuing operations before 
taxes and minority interests             858     1,205 3)      474      776 3)


Income taxes                            -253      -356        -129     -230

Income from continuing operations before 
 minority interests                      605       849 4)      345      546 4)


Minority interests                       -10       -10          -8       -9

Net Income from continuing operations    595                   337

Income from discontinued operations, 
 net of tax                              244                   200

Net income                               839       839         537      537

1) Restated to reflect the effect of the discontinued operations.

2) As reported, June 30, 1999

3) Previously called Income before taxes

4) Previously called Net income before minority interests