ABB Signs Global Supply and Service Agreement With IBM.

Business & High Tech Editors

ZURICH, Switzerland--(BUSINESS WIRE)--April 5, 2000

ABB, the global technology company, said today it has signed a US$ 250-million global supply and service agreement with IBM to make the operation of its computer environment more efficient. ABB said the deal is expected to lower the company's Information Technology (IT) costs by some US$ 35 million a year.

Under the terms of the agreement, intended to cover ABB's new equipment needs over a period of three years, ABB will lease about 75,000 desktop computers, 25,000 laptop computers, and 9,000 servers. ABB will be able to order the computers directly in more than 80 countries through a Web-based procurement system. IBM will be responsible for installation and maintenance.

The agreement supports ABB's drive to use its global presence to achieve deeper efficiency gains and tap economies of scale. ABB said the common global hardware environment would also speed up the worldwide roll-out of standard software applications, such as those used in eBusiness.

"ABB's move into knowledge- and service-based markets demands a solid worldwide IT infrastructure to support the flow of information," said Gran Lindahl, ABB's President and CEO. "This agreement is an important first step in making us faster, more efficient and more responsive."

ABB will begin implementing the agreement immediately.

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.