Re Contract

ABB Ltd
24 February 2004

ABB wins $43 million order to secure power supply in Mexico



FACTS technology increasingly used to prevent blackouts



Zurich, Switzerland, February 24, 2004 - ABB, the leading power and automation
technology group, announced today it has won a turnkey contract worth $43
million to install Flexible Alternating Current Transmission Systems (FACTS)
technology to help prevent power blackouts in Mexico.

The contract, awarded by Comision Federal de Electricidad (CFE), the Mexican
state-owned utility, will improve the efficiency of the transmission system and
increase grid reliability in Mexico City and northern parts of the country.

'Our FACTS technology is in strong demand by utilities which are trying to
stabilize grid systems and prevent blackouts, ' says Peter Smits, head of ABB's
Power Technologies division. 'FACTS stabilizes voltage and increases the
capacity of existing transmission networks.'

The project includes the design, manufacture, testing, erection and
commissioning of the entire system in three regions. The project is scheduled
for completion in 17 months.

The order includes ABB's Static Var Compensator (SVC) technology - part of the
FACTS portfolio - which helps to avoid grid overload.  Over the past ten years,
ABB has delivered twelve SVCs to CFE. ABB is the global leader in the growing
FACTS market.



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 115,000 people.



Background information about FACTS



The power industry term FACTS covers a number of technologies that enhance the
security, capacity and flexibility of power transmission systems. FACTS
solutions enable grid owners to increase the capacity of existing transmission
networks, while maintaining or improving the operating margins necessary for
grid stability.



By applying FACTS, more power can reach consumers with minimum impact on the
environment, and at lower investment costs compared to the more time-consuming
alternative of building new transmission lines or power plants.



FACTS technologies provide remedies for voltage and stability issues, and permit
the transmission system to run more efficiently.




                      This information is provided by RNS
            The company news service from the London Stock Exchange