Alliance

ABB Ltd
14 June 2000


ABB Corporate Corporations, Zurich      ABB Investor Relations, Zurich
John Fox                                Manfred Ebling
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ABB in alliance to develop new Web solutions for pulp and paper customers

Zurich, Switzerland, June 14, 2000 - ABB, the global technology group, today
announced an alliance with PaperLoop.com, the on-line paper industry
marketplace, to jointly develop a new kind of Web portal for the pulp and paper
industry. ABB said the alliance is part of its strategy to develop new eBusiness
solutions for enhanced customer value.

ABB said development with PaperLoop.com is aimed at creating a new category of
Web portal that goes beyond conventional transaction-only or marketing-only
sites to put technical information data bases online, offer consulting services
via the Web, and provide industrial software that customers can download or use
directly online.

'This is part of an aggressive strategy to rapidly develop our eBusiness
capabilities, using eBusiness as a tool to deliver our technologies to our
customers faster and more efficiently, while also creating new kinds of
solutions and new channels to market,' said Jorgen Centerman, Executive Vice
President and head of ABB's Automation Segment.

ABB is the largest supplier of automation and electrical solutions to the pulp
and paper industry. ABB is the fist major supplier to the pulp and paper
industry to take a stake in a third-party online marketplace. PaperLoop.com is
the world's leading provider of information to the pulp and paper industry.

'We are excited about combining our resources and expertise with ABB to deliver
the pulp and paper industry solutions and content focused on the operational,
technical and strategic aspects of their businesses,' said Tim Fazio, Chief
Executive Officer of PaperLoop.com. 'Such an alliance will add substantial new
revenue streams to an already robust and diverse business model that includes
content monetization and transaction fees.'

Across its full range of businesses, ABB plans to offer 30 percent of its
standard products over the Internet by the end of this year, and all of its
standard products by end of next year.

PaperLoop.com is a 50-50 joint venture between United News Media and Pegasus
Capital, a prominent venture capital firm in the pulp & paper industry.
PaperLoop.com provides paper manufacturers, converters, printers, suppliers,
logistics providers, end-users, and the financial community that make up the
industry's 'paper-loop' with a faster and more efficient way of doing business.

ABB Automation, the world's leading supplier of products and solutions for
manufacturing and process industries, employs more than 54,000 people around the
world in 80 manufacturing centers, 50 research and development labs and 40-plus
countries. ABB Automation is part of the ABB Group, which also serves customers
in power transmission and distribution; oil, gas, and petrochemicals; building
technologies; and in financial services. ABB employs some 165,000 people in more
than 100 countries. 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.