Agreement Signed with IBM

ABB Ltd
5 April 2000


ABB Corporate Communications, Zurich    ABB investor Relations, Zurich
John Fox                                Manfred Ebling
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             ABB signs global supply and service agreement with IBM

Zurich, Switzerland, April 05, 2000 - ABB, the global technology company, said
today it has signed a US$ 250-million global supply and service agreement
with IBM to make the operation of its computer environment more efficient. ABB
said the deal is expected to lower the company's Information Technology (IT)
costs by some US$ 35 million a year.

Under the terms of the agreement, intended to cover ABB's new equipment needs
over a period of three years, ABB will lease about 75,000 desktop computers,
25,000 laptop computers, and 9,000 servers. ABB will be able to order the
computers directly in more than 80 countries through a Web-based procurement
system. IBM will be responsible for installation and maintenance.

The agreement supports ABB's drive to use its global presence to achieve deeper
efficiency gains and tap economies of scale. ABB said the common global
hardware environment would also speed up the worldwide roll-out of standard
software applications, such as those used in eBusiness.

'ABB's move into knowledge- and service-based markets demands a solid worldwide
IT infrastructure to support the flow of information,' said Goran Lindahl, ABB's
President and CEO. 'This agreement is an important first step in making us
faster, more efficient and more responsive.'

ABB will begin implementing the agreement immediately.

The ABB Group serves customers in power transmission and distribution;
automation; oil, gas, and petrochemicals; building technologles; 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 165,000 people in
more than 100 countries.