AlliedSignal Aerospace Selected to Supply Avionics for CASA's New C-295 and CN-235 Aircraft and for CN-235 Fleet-Wide Retrofit.

PARIS--(BUSINESS WIRE)--June 28, 1999--

Agreement has Potential Long-Term Value of U.S. $100 Million

AlliedSignal Inc. (NYSE:ALD) announced Monday that AlliedSignal Aerospace has been selected by Spanish aircraft manufacturer CASA to provide an extensive package of avionics systems for new production C-295 and CN-235 aircraft and for retrofits of in-service CN-235 aircraft.

The contract is expected to generate up to $100 million in sales based on the equipment of 300 new C-295 and CN-235 aircraft and 200 retrofits of CN-235 aircraft in operation worldwide.

Under the terms of the agreement, AlliedSignal Aerospace will provide the following products:

-- Color Weather Radar System (RDR 1400 C), which provides weather

detection and airborne surveillance including the capability to

detect and track both airborne and ground/maritime targets.

-- Enhanced Ground Proximity Warning System (EGPWS), which provides a

terrain display and sounds an audible alert a full minute in

advance of a potential conflict with terrain in the aircraft's

flight path (AlliedSignal Aerospace has the only certified system

of this type in the aerospace industry).

-- Enhanced Traffic and Collision Avoidance System (ETCAS), which

gives pilots a real-time display of surrounding aircraft and, when

necessary, gives the flight crew visual and audible alerts and

maneuvering instructions to help them avoid a potential conflict

with another aircraft.

-- Solid State Flight Data Recorder (SSFDR), a new solid state flight

data recorder that records hundreds of parameters of aircraft and

system operating data and preserves the data in a crash-survivable

memory unit to help investigators determine the causes of

accidents.

-- Solid State Cockpit Voice Recorder (SSCVR), which records

conversations among the flight crew, radio and air traffic

controllers and other sounds audible in the cockpit and preserves

them in a crash-survivable memory unit for use by accident

investigators.

-- Identification Friend or Foe Transponder (IFF), which provides an

electronic signal used to identify airborne platforms in both

military and commercial environments. It is used primarily to

deconflict and sequence airborne aircraft traffic worldwide.

"The AlliedSignal Aerospace package provides CASA and its customers worldwide with a combination of high-quality, reliable avionics systems and aftermarket service capabilities," said Tom Culligan, vice president/general manager -- Defense & Space, AlliedSignal Aerospace.

"We are delighted by this vote of confidence from CASA," said Serge Buchakjian, vice president/international -- Defense & Space, AlliedSignal Aerospace.

In 1997, at the Paris Air Show, the C-295 project was announced, emphasizing that it would maintain the same philosophy as applied to the CN-235 regarding simplicity, sturdiness and ease of maintenance but with improved operative performance and with a 50 percent increase in cargo capacity.

The C-295, based on a new generation aircraft, with proven experience and reliability (more than 500,000 flight hours), will follow in the tradition of the CN-235 -- a leader in its field, with 229 aircraft and 30 operators in 10 years -- but fulfill different requirements. It will constitute a perfect complement to the family of CASA military transport aircraft.

AlliedSignal Aerospace, a U.S. $7.5-billion unit of AlliedSignal Inc., is the largest supplier of aircraft engines, equipment, systems and services for commercial transport, regional, general aviation and military aircraft. In Europe, AlliedSignal Aerospace is a leading manufacturer of propulsion engines, auxiliary power units, wheels and brakes, avionics, environmental control systems, engine controls and accessories and power generation and management systems.

Since 1995, AlliedSignal Aerospace has doubled the size of its workforce in Europe. Its 3,000 employees operate from more than 20 locations throughout the region and provide equipment, support and repair services to airframe makers and commercial transport, regional, general and military aviation operators.

The parent company, AlliedSignal Inc., with headquarters in Morris Township, N.J., USA, is a U.S. $15-billion advanced technology and manufacturing company serving customers worldwide with aerospace and automotive products, chemicals, fibers, plastics and advanced materials. More information on AlliedSignal is available on the World Wide Web at http://www.alliedsignal.com.

This news release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts.