AlliedSignal Licenses New Refrigerant to Elf Atochem.

MORRIS TOWNSHIP, N.J.--(BUSINESS WIRE)--Oct. 8, 1997-- AlliedSignal Inc. (NYSE: ALD) said today that it has entered into a licensing agreement with Elf Atochem that enables the Paris, France-based company to offer AlliedSignal's Genetron(R) AZ-20 (R-410A) non-ozone-depleting refrigerant.

Terms of the agreement were not announced.

Genetron AZ-20 was invented and patented by AlliedSignal as a non-ozone-depleting, long-term replacement for HCFC-22 (hydrochlorofluorocarbon) in air-conditioning equipment and in refrigeration applications. The refrigerant, which AlliedSignal licensed to DuPont in 1996, offers greater energy efficiency than HCFC-22 in units designed for its use.

According to AlliedSignal Fluorine Products President Dave Weidman, AZ-20 is gaining growing worldwide acceptance by air-conditioning original equipment manufacturers (OEMs) who are beginning to introduce product lines based on the new refrigerant.

"We are delighted by the global industry's growing acceptance and support of R-410A (Genetron AZ-20) as a long-term substitute for HCFC-22," Weidman said. "R-410A is an important element of our growth strategy within the growing $1.5 billion global refrigerant industry."

"The new air-conditioning equipment segment of this industry alone typically purchases more than 100 million pounds of refrigerant for new equipment each year," Weidman added. "Today's agreement strengthens R-410A's existing leadership role as the new standard replacement for HCFC-22 in new air-conditioning equipment applications."

OEMs that have introduced AZ-20 equipment include Carrier Corp., which selected AZ-20 for use in its new, high-efficiency residential air-conditioner product line. McQuay International, York International and Frigoblock also have introduced AZ-20 units. More global OEMs are currently evaluating AZ-20 for their product lines.

The company said AZ-20 will help OEMs meet the Department of Energy's (DOE) anticipated increase in the minimum energy efficiency standards for air-conditioning equipment.

Regulations established by Congress, and stemming from the Montreal Protocol on Substances that Deplete the Ozone Layer, currently call for the phaseout of HCFC-22 in new equipment applications in 2010.

"Its superior performance characteristics, which are based on greater energy efficiency and potential reduced system costs, make R-410A the ideal substitute for HCFC-22 in an industry that is growing increasingly cost-conscious and sensitive to the need to conserve energy," said Thomas J. Burke, Business Unit Leader, Refrigerants. "We are proud of our leadership position in the development of R-410A and know that our global customers welcome Atochem's endorsement and marketing of the product."

Burke added that, as part of the agreement between the two companies, AlliedSignal will add R-408A to its broad line of environmentally safer refrigerants. R-408A was developed by Atochem and is used as an interim substitute for the CFC-based R-502 refrigerant in commercial refrigeration systems.

Genetron AZ-20 is an azeotropic mixture of HFC-32 (hydrofluorocarbon) and HFC-125 (hydrofluorocarbon). In tests, AZ-20 has shown to have up to a seven percent higher energy-efficiency-rating (EER) than HCFC-22.

For additional information on Genetron AZ-20 (R-410A), contact AlliedSignal Fluorine Products at 800/631-8138 or fax [phone]. Or visit the business' Website at www.genetron.com.

Fluorine Products is part of AlliedSignal's Specialty Chemicals business, a world leader in the manufacture and supply of specialty and fine chemical products for a diverse range of applications. AlliedSignal Inc. is an advanced manufacturing and technology company serving customers worldwide with aerospace and automotive products, chemicals, fibers, plastics and advanced materials.

CONTACT: AlliedSignal

Tom Crane, 201/455-6073