Re Joint Venture

ABB Ltd
16 October 2000


ABB Corporate Communications, Zurich   ABB Investor Relations
Thomas Schmidt                         Switzerland: [phone]
Tel: [phone]                    Sweden: [phone]
Fax: [phone]                    USA: [phone]
[e-mail]             [e-mail]

ABB and Schlumberger in subsea joint venture

Teaming to develop market leading capability

Zurich, Switzerland, October 16, 2000 - Global technology group ABB and
Schlumberger announced today that they have signed a Memorandum  of
Understanding (MOU) to form a joint venture aimed at improving the economics of
subsea oil and gas development.

The scope of the memorandum includes development of new technologies and
services that will be needed in hydrocarbon production from the oil reservoir
to the delivery point - whether on a platform, ship or directly to shore.

'We will combine Schlumberger reservoir evaluation, development and management
experience, including downhole monitoring and control, with ABB's subsea
knowledge expertise, including application of new technologies for downhole
intelligent completions, subsea processing and power distribution,' said Goran
Lindahl, President and CEO of ABB. 'Together, we can provide customers with new
field development solutions that will increase recovery from subsea fields.'

The worldwide joint venture - that will not require any material equity
investment - will offer new technology for deepwater and offshore assets  based
on a risk-reward business model. ABB and Schlumberger said the
oil, gas and petrochemicals industry is increasingly geared to sharing both the
risk and reward involved with moving a project or technology forward - for
example, joint project development and execution, as well as in research and
development or in financing.

'Our objective is to provide the systems and processes that will allow our
customers to develop both deepwater and marginal offshore fields more
economically,' said Euan Baird, Chairman and CEO of Schlumberger. 'We believe
that by working together, we can deliver innovative solutions that will
significantly advance the state-of-the-art in subsea field development.'

A definite agreement between the parties is anticipated before year-end 2000.

Schlumberger Limited is the leading supplier of services and technology to
the international petroleum industry and operates offices, service locations,
and research and development facilities around the world. Schlumberger is a
global leader in technical services spanning the oil and gas, utility,
semiconductor, smartcard, network and Internet solutions industries.
Schlumberger revenue was $8.4 billion in 1999. Additional information is,
available at www.slb.com.

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 and had revenues of
approximately US$ 25 billion in 1999.