Stmnt re New Office

ABB Ltd
28 June 2001


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ABB opens office in Democratic People's Republic of Korea
Early move to Pyongyang for global technology group

Zurich, Switzerland, June 28, 2001 - ABB confirmed today that it has officially
opened an office in Pyongyang, the capital of the Democratic People's Republic
of Korea (DPRK), solidifying an agreement signed last November to help improve
the performance of the country's electricity transmission network and basic
industries.

ABB announced the opening at a special ceremony attended by senior company
officials and local government representatives.

'The local government and organizations have been very receptive to our arrival,
and we look forward to helping this country develop sustainable levels of
electrical power supply,' said Jorgen Centerman president and CEO of the ABB
Group.

ABB announced in December 2000 that it intended to pursue business opportunities
in DPRK. ABB officials at the opening ceremony say subsequent meetings were held
to outline investment opportunities and technical cooperation in the area of
modernizing DPRK'S national electric grid, and upgrading electrical equipment
and control systems in its power and industrial plants.

Sune Karlsson, senior officer and head of large projects for ABB Group, said a
further two key meetings took place in 2001, during which working groups were
organized and specific tasks outlined.

'Furthermore, we were asked by the Ministry of Electrical Power and Coal
Industry (MEPCI) and the local electrical authority of a county north of
Pyongyang to assist with the electrification of a farming and rural development
project,' said Karlsson.

ABB said it's November 2000 agreement will also explore cooperation with DPRK
partners in the manufacture of electrical products and the provision of
services, as well as look for ways to improve performance and efficiency in the
manufacture of electrical products such as transformers, circuit breakers,
cables and the supply of complementary electrical products, systems and
equipment.

ABB appointed group representative Andre Reussner, a Swiss national, to head the
office, which is leased from the North Korean government.

ABB (www.abb.com) serves manufacturing, process and consumer industries,
utilities, and the oil and gas sector markets with 160,000 employees in more
than 100 countries.