AGREEMENT REPLACES $1-BILLION FACILITY EXPIRES NEXT YEAR, PROVIDES GREATER FLEXIBILITY

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AGREEMENT REPLACES $1-BILLION FACILITY EXPIRES NEXT YEAR, PROVIDES GREATER FLEXIBILITY
05 July 2005 - ABB (Power Technologies)

The unsecured facility replaces the $1-billion credit facility that was due to expire in November 2006. The new credit facility, based on terms typically found in the investmentgrade syndicated loan market, was oversubscribed by approximately 60 percent. The funds will be used for general corporate purposes.

'This new agreement gives us greater financial flexibility at terms and conditions that reflect our return to strong financial health,' said Michel Demaré, ABB's chief financial officer. 'I'm also encouraged by the positive support from our partner banks for the new facility. It reflects the re-established confidence that the financial community has in our operational performance and the future of ABB.'

The previous $1-billion credit facility was signed in November, 2003 and was part of the company's capital strengthening program that included a $2.5-billion rights issue and a Euro 650-million bond.

The new credit facility carries a margin of 62.5 basis points per year (linked to a ratings grid). The commitment fee is 35 percent of the margin.

The syndicate consists of Barclays Capital, Bayerische Hypo- und Vereinsbank AG, BNP Paribas, Citigroup Global Markets Limited, Commerzbank AG, Credit Suisse, Deutsche Bank AG, Dresdner Kleinwort Wasserstein, HSBC Bank plc, Nordea Bank AB, Skandinaviska Enskilda Banken AB and Svenska andelsbanken AB as Mandated Lead Arrangers. Arrangers are ABN AMRO Bank N.V., Banco Bilbao Vizcaya Argentaria S.A., Bank of America N.A., DNB Nor Bank ASA, ING Luxembourg S.A., KBC Bank N.V. and UBS. The Co-Arranger is Banca Intesa SpA.

http://abb.com/uk

About: ABB (Power Technologies)
ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impacts. ABB in the UK operates from more than 20 locations nationally and employs around 2,500 people. The ABB Group of companies operates in around 100 countries and employs about 105,000 people.

Power Technologies
The Power Technologies division serves industrial and commercial customers, as well as electric, gas and water utilities, with a broad range of products, services and solutions for power transmission and distribution. The portfolio includes transformers, switchgear, breakers, capacitors and cables, as well as high- and medium-voltage applications, many of which are also sold through external channel partners like distributors, system integrators, contractors and original equipment manufacturers.

Automation Technologies
The Automation Technologies division serves the automotive, building, chemicals, consumer, electronics, life sciences, manufacturing, marine, metals, minerals, paper, petroleum, transportation, turbocharging and utility industries. Key technologies include control, drives, enterprise software, instrumentation, low-voltage products, motors, robots and turbochargers. These offerings are supported by field maintenance and asset management services, and are sold both directly and through channel partners.

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