AlliedSignal To Expand Amorphous Metals Business Through Technology Licensing Agreement With General Electric.

MORRISTOWN, N.J.--(BUSINESS WIRE)--Feb. 24, 1998--

Asian Markets First To Gain Highly Efficient

New Electrical Power Distribution Systems

Marking a major advance in electrical power distribution systems, AlliedSignal Inc. (NYSE: ALD) signed an agreement with the General Electric Company (NYSE: GE) that will give AlliedSignal exclusive rights to patents held by GE for its advanced electrical distribution transformers that utilize AlliedSignal's METGLAS(R) amorphous metal. The agreement enables AlliedSignal to market GE's Amorphous Metal Transformer (AMT) technology in all parts of the world excluding the United States, Canada and Mexico. Asia will be the first region to manufacture and market the new transformers that cut energy use and related pollutants by as much as 80%.

AMT technology combines an advanced core material developed by AlliedSignal with unique distribution transformer design and manufacturing techniques developed by GE. Key to the new transformer technology is AlliedSignal's METGLAS amorphous metal, which has unique magnetic and electrical properties. Cores made with METGLAS amorphous metal dramatically improve the efficiencies of electrical transformers used in utility distribution systems as well as in residential and industrial applications.

"GE's world-class AMT technology, combined with the use of AlliedSignal's world-class METGLAS amorphous metal, will enable us to support transformer manufacturers with the most cost-effective, design-to-finished-product technology available," AlliedSignal Amorphous Metals Vice President Bruce Fisher said. "And we intend to make this technology transfer even more accessible and effective by providing extensive training resources."

"AlliedSignal's METGLAS amorphous metal and GE's AMT technology have been utilized together for over a decade to provide an extremely energy-efficient alternative to more traditional distribution transformers," said Dick Pease, Vice President, GE Electrical Distribution & Control's Power Equipment Business. "Today we have taken another major step forward in bringing this state-of-the-art technology to the Pacific Rim."

Manufacturing costs for the new AMT have been significantly reduced, as a result of the GE design's smaller size and weight. In Asia, manufacturing costs for the new AMTs are expected to be reduced by over 20%, making these distribution transformers more competitive with conventional distribution transformers.

Fisher added, "The significant energy-savings provided by the METGLAS amorphous metal core enables customers to recoup their investment in about three years. After that, energy savings would continue to accrue over the transformer's 30-year service life."

The license agreement covers AMT core and coil design, assembly and manufacturing technologies as well as manufacturing equipment specifications. Terms of the agreement were not announced.

AlliedSignal and GE will provide AMT technology training for customers at AlliedSignal's training facility in Asia and at GE facilities in the United States. GE's Plainville, Connecticut-based Electrical Distribution & Control's Power Equipment Business will continue to manufacture amorphous metal transformers and cores for customers throughout the world. AlliedSignal Amorphous Metals will concentrate on the development of amorphous metal transformer markets in Asia, Europe and Latin America, including being the exclusive licensing agent of GE's AMT technology world-wide excluding the United States, Canada and Mexico.

GE Electrical Distribution and Control is a global leader in manufacturing products used to distribute, protect and control electrical power and equipment.

With more than 700 patents, AlliedSignal Amorphous Metals is the world's leader in amorphous metal technology. In addition to electrical distribution transformers, METGLAS amorphous metals are used in electronic components for personal computers, printers and fax machines and in anti-theft tags for clothing and other consumer goods.

AlliedSignal Electronic Materials, a strategic business unit of AlliedSignal Inc., provides materials solutions to the global semiconductor and electronics industries, and employs 3,000 people worldwide. Based in Los Gatos, California, it has sales, marketing and manufacturing facilities in California, Wisconsin, Arizona, New York, South Carolina, Indiana, Taiwan, China, Singapore, Germany and India. Its businesses include Advanced Microelectronic Materials (AMM), AlliedSignal Substrate Technology & Interconnects (ASTI), Amorphous Metals, Laminate Systems, Oak-Mitsui and Optical Devices. The agreement with GE is part of AlliedSignal Electronic Materials' strategy to grow rapidly through development of new products and technologies, internally generated sales, niche acquisitions and geographical expansion, particularly in parts of Asia.

With corporate headquarters in Morristown, New Jersey, AlliedSignal Inc. is a $14.5-billion advanced technology and manufacturing company with 70,500 employees at more than 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 and is one of 30 companies included in the Dow Jones Industrial Average.

This 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.

CONTACT: David Nathasingh

AlliedSignal

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Greg Coulter

General Electric

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Lisa Orlandini

Ruder Finn

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