ABB Asbestos Cases Rise in March to 94,000
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Published September 27, 2002


ABB Ltd. reports that, during the first quarter of 2002, 14,300 new 
claims were filed against Combustion Engineering Inc., a subsidiary that 
formerly conducted part of its divested power generation business and 
which now owns commercial real estate that it leases to third parties.  
The figures for the quarter are five percent lesser than the fourth 
quarter of 2001.

About 13,500 claims were settled during the period, of which more than 
50 percent were settled without payment. Settlement costs prior to 
reimbursement were approximately $51 million, up from $37 million in the
first quarter of 2001.

At March 31, 2002, there were about 94,0000 pending claims against 
Combustion Engineering, the company says. Plaintiffs claim damages for 
personal injury arising from exposure to or use of equipment, which 
contained asbestos that Combustion Engineering supplied, primarily 
during the 1970s and before.

During 2001, Combustion Engineering experienced a significant increase 
in the level of new claims and higher total and per-claim settlement 
costs as compared to recent years. This resulted in an increase in the 
reserves for potential asbestos liabilities by $470 million.

Cash payments to resolve asbestos claims were $136 million, $125 million
and $67 million in 2001, 2000 and 1999, respectively.

As of December 31, 2001 and 2000, reserves of $940 million and $590 
million, respectively, were recorded in respect of asbestos claims and 
related defense costs. The reserves do not reflect probable insurance 
recoveries on those claims. ABB also recorded assets of about $150 
million and $160 million at December 31, 2001 and 2000, respectively, 
for probable insurance recoveries, which were established with respect 
to the claims reserved against.


Other ABB Group entities are also named as defendants in asbestos claims.
These claims, however, are insignificant compared to the Combustion 
Engineering claims and have not had, and are not expected to have, a 
material impact on ABB's consolidated financial position or consolidated 
results of operations.

In 2001, the average payment per claim in which a payment was made was 
$6,069, representing a 26 percent increase in the average payment per 
claim of $4,833 in 2000. Approximately $12.8 million, $10.5 million and 
$8.2 million in administration and defense costs were incurred in 2001, 
2000 and 1999, respectively. 


COMPANY SNAPSHOT
ABB Ltd. (NYSE: ABB)
Affolternstrasse 44
CH-8050 Zurich, Switzerland
Phone: +41-43-317-7111
Fax: +41-43-317-7958
Web site: http://www.abb.com

Employees                       : 156,865
Revenue                         : $23,726,000,000
Net Income (Loss)               : ($130,000,000)
Assets                          : $32,344,000,000
Liabilities                     : $30,115,000,000
No. of Asbestos Claims          : 94,000,000*
Estimated Asbestos Liabilities  : $940,000,000
Insurance Recoveries            : $150,000,000

(For the year ended December 31, 2001)
(*As of March 31, 2002)

Description: Organized in Switzerland, ABB Ltd. is a global provider of 
products and systems incorporating advanced technologies and innovative 
applications of those products and systems, specializing in automation 
and power technologies for a broad range of industrial and commercial 
customers. The company works with customers to engineer and install 
networks, facilities and plants with particular emphasis on enhancing 
efficiency and productivity for customers that source, refine, transmit 
and distribute energy. ABB provides comprehensive market and product 
support services, as well as creative financing and risk management 
options to enable its customers to buy and use its products and 
services.


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