ABB sells Building Systems business in Nordic region for US$ 233 million

Divestment strategy on track as company focuses on core technologies

Zurich, Switzerland, July 4th, 2003 – ABB, the leading power and automation technology group, said today it has agreed to sell its Building Systems business in Sweden, Norway, Denmark, Finland (including Russia and the Baltics) to YIT Corporation of Helsinki, Finland, for about US$ 233 million (Euro 203 million).

Final cash proceeds received at closing date will be adjusted for net working capital and are expected to be around US$ 170 million. The sale is subject to customary competition authority approvals.

“This sale is another step towards reaching our divestment targets for 2003, and gives these businesses a better opportunity to grow,” said Peter Voser, ABB’s chief financial officer.

Proceeds from the sale will be used to further reduce ABB’s debt and strengthen its balance sheet.

ABB Building Systems in the Nordic region employs about 9,000 people in more than 100 locations. The business reported revenues of about US$ 1.1 billion in 2002.

Building Systems Nordic region is part of the Building Systems business area reported separately in the Group Annual Report 2002 under the heading non-core activities.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impacts. The ABB Group of companies operates in around 100 countries and employs about 135,000 people.

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