European Commission approves the formation of ABB ALSTOM
POWER joint company

ALSTOM and ABB today announced they have received approval
from the European Commission for the formation of their
proposed 50-50 joint company in power generation.

Regulatory clearances for the formation of ABB ALSTOM POWER
are still pending in the US and other jurisdictions and are
expected within the next few days.

As announced by ALSTOM and ABB on 23rd March 1999, the new
joint company - called ABB ALSTOM POWER - will employ some
54,000 people in more than 100 countries, with 1998 pro-forma
revenues of about 9.9 billion euros. The transaction closing
will take place and operations of the joint company will begin
shortly, following pending regulatory approvals.

'We welcome today's decision by the European Commission and
look forward to the early receipt of the remaining approvals,
which will enable the rapid formation of the largest and most
complete power generation company in the world having a huge
potential for future development ' said Pierre Bilger, ALSTOM's
Chairman and CEO.

As announced in March, ABB ALSTOM POWER is to comprise all
of ABB's Power Generation Segment, excluding its nuclear
activities and its distributed power business. The new company
will also comprise all of ALSTOM's Energy sector activities,
excluding the General Electric-based heavy duty gas turbine
business, which ALSTOM is divesting.

The President and Chief Executive Officer of the new company
will be Claude Darmon, presently Deputy CEO of ALSTOM. Joining
him on the Management Board will be Alexis Fries, currently
head of ABB's Power Generation Segment, and Nick Salmon, head
of ALSTOM's Energy sector. ABB's CEO, Göran Lindahl will
be the Chairman of the Supervisory Board.

To compensate for the difference in the size of the
contributed businesses, ABB will receive a cash compensation
from ALSTOM of US$ 1.5 billion.

As previously announced, the European Commission yesterday
gave its approval for the sale by ALSTOM of its GE-licensed
heavy-duty gas turbine business to GE. As announced on 23rd
March 1999, the net consideration of the related transaction to
be received by ALSTOM will be US$ 910 million.