ABB, Deutsche Telekom and Utfors apply for UMTS license in Sweden

· High-speed mobile multimedia communications available to more than 99% of Sweden’s population within three years · More than 1,000 new jobs throughout the country · Complementary experiences in UMTS development, financing and executing large infrastructure projects and creating innovative services

Zurich, Switzerland, September 1, 2000 – Mobility4Sweden, a joint venture formed by ABB, Deutsche Telekom’s mobile communications holding T-Mobile International and Utfors today applied to the Swedish Post and Telecom Agency for licenses to build and operate nationwide third-generation mobile UMTS and GSM networks.

Mobility4Sweden’s UMTS network will make high-speed mobile multimedia communications available to more than 99 percent of Sweden’s population within three years, while creating more than 1,000 new jobs throughout the country. The company plans to launch its GSM network in April 2001, and its UMTS network platform will be underway in 2002, following the introduction of third-generation mobile handheld devices.

ABB will hold a 26-percent share in Mobility4Sweden, while Utfors will have 29 percent and T-Mobile International 45 percent.

ABB brings a wealth of experience in the financing and execution of large infrastructure projects. The global technology group also has a proven track record in the installation, maintenance and service of telecom networks in several countries in Europe. In Sweden, ABB employs 20,000 people across its range of businesses.

Deutsche Telekom is Europe’s leading telecom operator and a forerunner in developing UMTS technology. Through its subsidiary, T-Mobile International, Deutsche Telekom has bid for and been awarded UMTS licenses in the UK, the Netherlands and Germany. All T-Mobile affiliates operate and maintain their own networks to the highest international standards.

Utfors has actively created a new competitive environment by lowering costs and prices of Internet services and fixed telephony in Sweden. Through its own rapidly growing broadband network, which reaches more than 250,000 subscribers, Utfors is at the forefront of the development of innovative IP-based services in Sweden.

Mobility4Sweden has an agreement with Ericsson to provide key technologies and components for Mobility4Sweden’s nationwide GSM and UMTS networks.

UMTS, or Universal Mobile Telecommunications System, is the next generation of high-speed wireless data network for mobile communications. Four UMTS licenses will be allocated in Sweden. The Swedish Post and Telecom Agency will review the applications and, by the end of November, decide which applicants should be granted licenses. The decision will be based on a number of criteria, among others rollout plan and coverage.

The ABB Group (www.abb.com) serves customers in power transmission and distribution; automation; oil, gas, and petrochemicals; building technologies; and in financial services. 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. The ABB Group employs about 160,000 people in more than 100 countries. (END)

More details about Mobility4Sweden’s license application will be available at a press conference on Monday, September 4, 2000 in Stockholm.

The press conference, at the Grand Hotel, Stockholm, at 09.00 AM, will feature presentations by Göran Lindahl, President and CEO of ABB Ltd.; Sven-Christer Nilsson, Chairman of Utfors; and Kai-Uwe Ricke, CEO of T-Mobile International

The press conference will be broadcast on the Internet at www.mobility4sweden.com, beginning at approximately 09.15 AM.

      00_38_Mobility4Sweden_e.doc00_38_Mobility4Sweden_d.doc

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    • John Fox
      ABB Corporate Communications, Zurich
      Tel: +41 1 317 7371
      Fax: +41 1 317 7958
    • Pia Irell
      ABB Investor Relations, Zurich
      Tel: +41 1 317 7266
      Fax: +41 1 311 7918
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