Stmt re Former CEO Benefits

ABB Ltd
13 February 2002


ABB Board of Directors reassesses benefits of former CEOs

Zurich, Switzerland, February 13, 2002 - The Board of Directors of ABB Ltd said
today it is reassessing the pension and other benefits received by its former
Chief Executive Officers Percy Barnevik and Goran Lindahl, adding that
restitution will be sought of amounts paid in excess of obligations.

The Board said Barnevik had received some CHF 148 million in pension benefits
after his resignation as CEO in 1996, while Lindahl's pension and other benefits
amount to some CHF 85 million.

'These benefits were made available under the assumption of proper corporate
approvals by the Board of Directors or on the basis of Board delegation,' said
ABB chairman Jurgen Dormann. 'The Board of Directors has now determined that
approval procedures for these benefits were unsatisfactory and that the company
will seek restitution of amounts paid in excess of its obligations.'

The Board will be discussing restitution with Mr. Barnevik and Mr. Lindahl and
hopes the matter can be settled amicably.

The Board of Directors said it is acting after a detailed internal review in
recent months, coupled with external expert opinions.

The Board of Directors stressed that compensation and pension levels of other
ABB executives comply with prevailing international practices. Compliance is
ensured by a recently established nomination and compensation committee.

For more information please contact:
 
Media Relations                               Investor Relations
ABB Corporate Communications, Zurich          Switzerland: Tel. [phone]
Thomas Schmidt                                Sweden: Tel. [phone]
Tel: [phone]                           USA: Tel. [phone]
Fax: [phone]                           [e-mail]
[e-mail]


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