AlliedSignal Acquires Semiconductor Packaging Designer/Supplier As Part Of Strategy For Major Electronic Materials Growth.

MORRIS TOWNSHIP, N.J.--(BUSINESS WIRE)--Sept. 30, 1997-- AlliedSignal Inc. (NYSE:ALD) announced today that it has acquired the assets of one of two divisions owned by Litronic Industries, Inc., a privately-held company which is a leading designer and prototype supplier of advanced semiconductor packaging to the electronics industry. Terms of the transaction were not announced.

With those assets, AlliedSignal will create a new company known as AlliedSignal Substrate Technology & Interconnects (ASTI). Headquarters and manufacturing operations will continue in Costa Mesa, California, employing approximately 70 persons. ASTI becomes part of AlliedSignal's Silicon Valley-based Electronic Materials business, a leading global supplier to the electronics industry.

Litronic will continue its information security operations as a separate entity. Litronic is a leading designer and developer of information security devices that enable and enhance the security and performance of data storage and transmission over the Internet and corporate intranets.

"This acquisition reflects AlliedSignal's strategy of expanding our position in higher growth, higher margin industries, through both internal growth and acquisitions," AlliedSignal Electronic Materials President Geoff Wild said.

The acquisition will broaden and strengthen AlliedSignal Electronic Materials' offerings of technological materials and solutions to the electronics industry. AlliedSignal Electronic Materials primarily produces materials used in the production of semiconductor wafers and manufactures copper and laminate used as base materials for printed wiring boards. The formation of ASTI is its first step in providing leading-edge semiconductor packages.

"Litronic's electronic packaging operation is a premier designer and small-volume producer of advanced interconnects for the industry," Wild continued. "It's an excellent fit with our semiconductor and laminate materials businesses. It will help us meet our customers' requirements with complete technology, from materials for the manufacture of silicon wafers to materials for interconnections in electronic products."

Wild added that "this broad-ranging portfolio of products and solutions will be backed by world-class manufacturing processes, expert technical service and a global network with skilled sales and marketing people."

"Joining AlliedSignal will significantly enhance the scope of our business, providing us with an infusion of strategic resources -- including capital and additional talent -- to support faster product development, expand manufacturing capabilities and increase marketing to enable a global growth which will benefit our customers, employees and suppliers," Litronic Industries Chief Executive Officer Kris Shah said.

The acquisition of the assets of Litronic Industries is part of AlliedSignal Electronic Materials' strategy to grow rapidly through additional niche acquisitions, internally generated sales, development of new products and geographical expansion, particularly in Japan and other parts of Asia.

AlliedSignal Electronic Materials employs about 3,000 people worldwide. Based in Los Gatos, California, it has manufacturing facilities in California, Wisconsin, Arizona, New York, South Carolina, Indiana, Taiwan, Singapore, China, Germany and India. Its businesses include AlliedSignal Laminate Systems, a global leader in manufacturing materials used in the production of printed wiring boards and AlliedSignal Advanced Microelectronic Materials, which serves the semiconductor fabrication industry.

AlliedSignal Electronic Materials is a strategic business unit of AlliedSignal Inc. Headquartered in northern New Jersey, AlliedSignal Inc. is a $14 billion advanced technology and manufacturing company with 70,000 employees at 300 facilities in 40 countries. It serves customers worldwide with advanced materials, aerospace and automotive parts, chemicals, fibers and plastics. It is among the largest 100 companies on the Fortune 500 list and is one of 30 companies included in the Dow Jones Industrial Average.

CONTACT: AlliedSignal Inc.

Karen Hopkins, 408/341-3055

Edward M. Romanoff, 973/455-2144