ALSTOM Acquires ABBs Share in ABB ALSTOM
POWER

Paris/Zurich, March 31, 2000 ABB and ALSTOM today announced
that ALSTOM is acquiring ABB s share in their 50-50 joint
company ABB ALSTOM POWER for a cash payment of Euro 1.25
billion.

Going forward, the power company will be integrated into
ALSTOM s sector reporting structure. From the closing date,
Claude Darmon, President and CEO of ABB ALSTOM POWER, will be
re-confirmed in his position as head of ALSTOM Power and, in
addition, is appointed Deputy CEO of ALSTOM.

'We are genuinely excited by this new milestone in the
implementation of ALSTOM s strategy to concentrate our
activities around the fields of energy and transport
infrastructures. In our new configuration these activities will
represent almost 80 percent of the Company s sales. The timing
of this transaction could not be better: we stand today at the
eve of a turnaround both in the context of renewed economic
growth worldwide and also in terms of the power company s
on-going initiatives to significantly improve operating
performance. With this move, ALSTOM stands to benefit one
hundred percent from the new growth prospects and the full
synergy effects,' commented Pierre Bilger, Chairman and CEO of
ALSTOM.

Göran Lindahl, ABB President and CEO, said the
transaction is in line with the global technology group s
strategy to increase its reliance on IT-driven technology
solutions, as well as on high-tech in general and on service.
'Today we focus more on industrial IT, and on infusing IT
solutions and service into our activities in Automation,
Building Technologies, Oil, Gas and Petrochemicals, and
Financial Services. But our IT-driven strategy also means that
we create IT-based solutions for the dramatically changing
needs in the markets of Power Transmission and Power
Distribution.'

'The proceeds from the divestment will be used to enhance
ABB s position in B2B eCommerce, as well as for expansion in
the business segments beyond Automation, for example in Power
Distribution, Building Technologies and Financial Services,'
Lindahl added.

The transaction, which includes the resolution of all
outstanding matters relating to the formation of the joint
company a year ago, is subject to customary regulatory
approvals.

The closing of ALSTOM s acquisition is expected within one
month.

With 1999 pro-forma sales of Euro 9.8 billion, ABB ALSTOM
POWER is a world leader in the supply of power generation
services and equipment and employs over 50,000 people
worldwide.

ALSTOM is the specialist in energy and transport
infrastructures. Present in more than 60 countries, ALSTOM is
organized in six sectors: Energy, Transmission &
Distribution, Transport, Power Conversion, Marine and
Contracting, all of these supported by the ALSTOM Network.

The ABB Group 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
165,000 people in more than 100 countries.

Press Release

ALSTOM Press Contacts

ABB Corporate Communications, Zurich

Gilles Tourvieille / Isabelle Baudelaire

Tel: +33 1 47 55 22 71

gilles.tourvieille@chq.alstom.com

John Fox

Tel: +41 1 317 7371

Fax: +41 1 317 7958

john.fox@ch.abb.com
 

ALSTOM Investor Relations

Heather Green

Tel: +33 1 47 55 25 78

Fax: +33 1 47 55 28 61

investor.relations@chq.alstom.com

ABB Investor Relations

Manfred Ebling

Tel: +41 1 317 7266

Fax: +41 1 311 9817

investor.relations@ch.abb.com