ABB India Q3 netProfit up 55%

Bangalore, 30th October 2006:

Revenues

ABB India accelerated its revenue growth momentum with third quarter revenues of 10936 MINR registering a 52 per cent increase over 2005Q3. Cumulative revenues of 29040 MINR for the nine months ending September 2006 are 44 per cent higher than the same period last year. In addition to the conversion of a healthy order backlog this also reflects increased revenues from new revenue streams recently initiated.

" Power sector investments across the value chain are gathering pace, driven by generation capacity additions, transmission network augmentation, grid reliability and efficiency improvements. Industrial growth is also promising, both in terms of capacity additions and productivity enhancement initiatives. In line with our commitment towards profitable and sustainable growth, we shall continue to increase both the depth and breadth of our business. This will be driven by market penetration and increased volumes from the existing portfolio, as well as generation of new revenue streams said Ravi Uppal, Vice Chairman & Managing Director, ABB India, commenting on the results. "Our capacity and range expansion investment programme across products and locations continues on course, as we strengthen our leadership position and address the power and automation needs of a growing market" , he added.

Orders

The Company continued to strengthen its order book further taking the cumulative order intake for the nine month period ended September 2006 to 42110 MINR, an increase of 53 percent over the same period in the previous year. The order intake during the third quarter was 13580 MINR, 48 per cent higher than the third quarter of the previous year. In addition to significant orders for Power, Automation and Building Solutions projects, the company continued to build on the growth of its standard product business.

The company commissioned its recently announced Low Voltage Distribution Electricals unit in Haridwar . The Bangalore based Controlgear and LV Motors units, which became operational earlier this year are also gaining momentum.

The record order intake during the past few quarters, has helped strengthen the order backlog further to 35,646 MINR at the end of September 2006, as compared to 21,032 MINR at the beginning of the year and 31,375 MINR as at 30th June 2006.

Net Profit

For 2006 Q3 net profit after tax was 821 MINR compared to 529 MINR in 2005Q3 reflecting a growth of 55 per cent. Net profit after tax for the nine months ended September 2006 was 2053 MINR compared with 1241 MINR during the same period last year, registering a robust growth of 65 per cent. Improvement in profitability resulted primarily from higher revenues and continued operational efficiencies.

The company continued to invest for growth through internal cash generation, facilitated by efficient working capital management and continued focus on costs and productivity. ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 107,000 people.