ABB bondholders pass resolutions to permit repurchases

Zurich, Switzerland, September 9, 2004 – ABB, the leading power and automation technology group, said bondholders earlier today approved resolutions which give the company the option to redeem outstanding instruments of its Euro 300 million, 5.375 percent bonds due in 2005 and Euro 475 million, 5.125 percent bonds due in 2006.

The prices will be calculated on the same terms as the tender offers announced on 29 July 2004. Both bonds were issued by ABB International Finance Limited.

Peter Voser, ABB’s chief financial officer, said: “The completion of this bond repurchase will reduce ABB’s debt by approximately $800 million and is part of ABB’s strategy to cut gross debt to $4 billion by the end of 2005.”

Prior to the bondholders’ meetings, 57 percent (Euro 156,591,000) of the principal amount outstanding of 2005 bonds and 59 percent (Euro 215,200,000) of the principal amount outstanding of 2006 bonds had been validly tendered and accepted under the tender offers, for which pricing and settlement dates are scheduled for 10 and 14 September 2004 respectively.

ABB intends to exercise its options to redeem early all of the remaining outstanding 2005 and 2006 bonds. The redemption date is expected to be 29 September 2004, with the calculation of the relevant redemption amounts scheduled for 27 September 2004.

Further information can be found by contacting ABB or the dealer managers. A notice will also be published in the Luxemburger Wort on 14 September 2004.

Mandated dealer managers for the transaction are Barclays Capital, Commerzbank Securities and Dresdner Kleinwort Wasserstein.

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 105,000 people.

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