ABB third-quarter results to be positively impacted by change of provisions of about $380 million

Zurich, Switzerland, Oct. 19, 2009 – ABB will adjust certain provisions and accruals resulting in an overall reduction of approximately $380 million in the third quarter of 2009. As a result of that adjustment, ABB expects to announce a net income for the third quarter of approximately $1 billion.

In December 2008, ABB announced that it had reserved for anticipated charges relating to certain compliance, tax and restructuring matters. Based on developments impacting the third quarter, ABB has made significant positive and negative changes to some of those provisions as well as adjustments to other reserves.

ABB’s provisions as at the end of the third quarter will be impacted primarily by changes in the provisions relating to alleged anti-competitive practices, including, but not limited to, the European Commission’s power transformer decision earlier this month.

ABB's third-quarter accruals will also include an increase in charges relating to the challenges of doing business in Russia, including the impact of ongoing tax matters. As a result, ABB continues reviewing the situation and assessing its business model in Russia.

ABB ( 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 120,000 people.

Important notice about forward-looking information

This press release includes forward-looking information and statements concerning the outlook for our business. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, the economic conditions of the regions and industries that are major markets for ABB Ltd. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects,” “believes,” “estimates,” “targets,” “plans” or similar expressions. However, there are many risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this press release and which could affect our ability to achieve any or all of our stated targets. The important factors that could cause such differences include, among others, business risks related to the financial crisis and economic slowdown, costs associated with compliance activities, the amount of revenues we are able to generate from backlog and orders received, raw materials prices, market acceptance of new products and services, changes in governmental regulations and currency exchange rates and such other factors as may be discussed from time to time in ABB Ltd’s filings with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 20-F. Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.

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