Your example seems to imply some assumptions.
Is the value in column 2 ALWAYS longer than the value in column 1?
What if the values are:
ABC1alpha   and ABC1beta 
what do you want in the third column? 
 
When you said that you want to "extract the characters", does that mean 
that you want the first character that is different in both columns?
(ab)
or do you want ALL characters that are different in both columns?
(alphabeta)
 
since I don't know the answer to these questions, I'll simply start with 
this:
 
I would recommend a function:
 
Option Explicit
Public Function Compare_Strings(sVal1, sVal2)
    Dim nLen As Integer, nPos As Integer
    Dim bFlag As Boolean
    bFlag = False
    nLen = Len(sVal1)
    If (Len(sVal2) < nLen) Then nLen = Len(sVal2)
    For nPos = 1 To nLen
        If (Mid(UCase(sVal1), nPos, 1) <> Mid(UCase(sVal2), nPos, 1)) Then
            bFlag = True
            Exit For
        End If
    Next
    If (bFlag) Then
        Compare_Strings = Mid(UCase(sVal1), nPos, 1) & ", " & 
Mid(UCase(sVal2), nPos, 1)
    Else
        If (Len(sVal1) <> Len(sVal2)) Then
            If (Len(sVal1) > Len(sVal2)) Then
                Compare_Strings = Mid(UCase(sVal1), nPos, 1)
            Else
                Compare_Strings = Mid(UCase(sVal2), nPos, 1)
            End If
        Else
            Compare_Strings = "match"
        End If
    End If
    
End Function
 
Then, in your third column, use:
 
=Compare_Strings(A1,B1)
 
Paul
 
 
On Saturday, October 27, 2012 1:22:01 AM UTC-4, saravanan R wrote:

> Hi xlts, 
>
> I need your help on is there any macro /function to compare 2 adjacent 
> columns(cells) and extract the characters which makes difference in the 
> next column 
>
> Coloumn1.     Column2.  (required o/p) 
> Abc1              Abc1x             X 
>
> Thanks & regards, 
> Saravanan R

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