ABB reports irregularities

ABB Ltd
11 June 2004


ABB reports irregularities in Italian medium-voltage business to authorities

Zurich, Switzerland, June 11, 2004 - ABB said today it has disclosed to the
Italian authorities the preliminary results of a company inquiry into accounting
irregularities and other improper business practices in an Italian ABB
subsidiary.

ABB launched its inquiry, which is still ongoing, earlier this year following
the discovery of the accounting irregularities during an internal audit review.

'We have a policy of zero tolerance for improper behavior, and we acted promptly
to address the issue,' said Jurgen Dormann, ABB chairman and CEO. 'Our
investigation showed that this is an isolated case. We have contacted the
relevant authorities and disclosed our findings.'

The inquiry uncovered an overstatement by the medium-voltage business in Italy
of its earnings before interest and taxes (EBIT) of approximately $70 million
from the first quarter of 1998 through the first quarter of 2004. That
corresponds to 1.4 percent of ABB's total reported consolidated EBIT during the
period.

According to the company's initial review, the annual impact on EBIT over the
period ranged between about $2 million in 1998 to a maximum of some $20 million
in 2002.

The unit manager primarily responsible has been released, and further
disciplinary measures against other employees are under consideration.

The company inquiry also uncovered two improper payments made in 2001 and 2002
in connection with the award of a power equipment contract in Italy. A
disciplinary process has been initiated with regard to the employee involved.

ABB said a disclosure similar to the one it made to the Italian authorities has
also been made to the United States Securities and Exchange Commission (SEC) and
that it would take corrective action regarding its consolidated results for the
period in question. ABB said it intends to publish later this year restated
consolidated figures.

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 113,000 people.


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