Issue of Debt

ABB Ltd
16 May 2002

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE UNITED STATES, JAPAN OR
CANADA OR TO U.S. PERSONS

ABB successfully launches euro and sterling bond

Another key step completed: company's financial strategy fully on track

Zurich, Switzerland, May 16 - ABB Ltd, the global power and automation
technology group, said today its subsidiary, ABB International Finance Limited,
launched and priced a combined five-and-a-half year 500 million euro and a
seven-year 200 million pound sterling straight bond. The proceeds are expected
to be received on May 29, 2002.

'We've completed another key step in executing our financial strategy,' said
Peter Voser, ABB's chief financial officer 'We successfully renegotiated our US$
3 billion bank credit facility, we placed the US$ 968 million convertible bond
in late April, and have now raised about another US$ 750 million from straight
bonds.'

Voser said the proceeds from the convertible and straight bond issues would be
used to pay down its amended bank credit facility, which is not fully drawn
down. ABB has committed to paying back the facility by mid-December, 2002.

'We are on schedule to pay down the facility as agreed with our relationship
banks,' said Voser.

ABB's financial strategy is geared to extending the maturity profile of its
debt.

ABB confirmed that it is in advanced negotiations with a number of parties to
sell its Structured Finance business, part of the Financial Services division.
Completion is expected in the third quarter. Alongside real estate sales,
proceeds from the divestment and operational cash flow will be used to fully
repay the bank credit facility and reduce net debt by at least US$ 1.5 billion
by year-end.

The joint lead managers for the straight bond were Barclays Capital, Credit
Suisse First Boston and Schroder Salomon Smith Barney.

ABB (www.abb.com) is a global leader in power and automation technologies that
enable utility and industry customers to improve performance while lowering
environmental impact. ABB has 152,000 employees in more than 100 countries.


THIS ANNOUNCEMENT IS NOT FOR PUBLICATION OR DISTRIBUTION OR RELEASE IN THE
UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE
OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) CANADA OR JAPAN OR TO U.S.
PERSONS. THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR FORM PART OF AN OFFER OR
SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR SECURITIES IN THE UNITED
STATES OR ANY OTHER JURISDICTION. THE SECURITIES REFERRED TO HEREIN HAVE NOT
BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED ('THE SECURITIES ACT'), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED
STATES OR TO OR FOR THE BENEFIT OF U.S. PERSONS, EXCEPT PURSUANT TO AN
APPLICABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES. NO PUBLIC OFFERING
OR PRIVATE PLACEMENT OF SECURITIES IS BEING MADE IN THE UNITED STATES.


This press release has been issued by ABB International Finance Limited (the
'Company') and has been approved solely for the purposes of Section 21 of the
Financial Services and Markets Act 2000 by Credit Suisse First Boston (Europe)
Limited ('CSFB'), Schroder Salomon Smith Barney ('SSSB') and Barclays Capital
('BC'). CSFB, SSSB and BC are acting for the Company and no one else in
connection with the offer of bonds and will not be responsible to any other
person for providing the protections afforded to their respective clients, or
for providing advice in relation to the proposed offer.


This document has been prepared for information purposes only and is not to be
relied upon in substitution for the exercise of independent judgement. It is not
intended as investment advice, and under no circumstances is it to be used or
considered as an offer to sell, or a solicitation of an offer to purchase, any
securities nor a recommendation to enter into any transaction; nor shall it or
any part of it form the basis of or be relied on in connection with any contract
or commitment whatsoever. Before entering into any transaction you should take
steps to ensure that you understand the transaction and have made an independent
assessment of the appropriateness of the transaction in light of your own
objectives and circumstances, including the possible risks and benefits of
entering into such a transaction. You should also consider seeking advice from
your own advisers in making this assessment. The binding conditions of the
offering will be published in an offering circular or prospectus subsequent to
the date hereof. The decision to purchase any of the securities mentioned in
this document should be made only on the basis of an offering circular or a
prospectus to be issued in connection with the offering, and not this document.
Information or opinions contained herein have been compiled from sources
believed to be reliable, but neither CSFB, SSSB, BC nor any of their
subsidiaries and affiliates accepts liability for any loss arising from the use
hereof or makes any representation as to its accuracy or completeness. The
information contained herein is subject to change without notice. This document
may not be reproduced or redistributed to any other person.

Stabilisation/FSA. In connection with the offering, the managers may engage in
transactions that stabilise, maintain or otherwise affect the price of the Bonds
and/or the Shares referred to herein.



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