Bear Stearns Selects United Technologies Corp. as the E-volve Stock Pick of the Week; Pick Kicks-Off the 8th Week of the 10-Week Internet Research Campaign.

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued

by Bear Stearns 

NEW YORK--(BUSINESS WIRE)--March 20, 2000

United Technologies Corp. (NYSE:UTX) has been selected by Bear Stearns aerospace and defense electronics/environmental services analysts Steve Binder and Valerie Davisson as its e-volve stock pick of the week. The selection begins the eighth week of a comprehensive marketing plan designed to utilize the findings in e-volve, a 340-page report compiled by the Bear Stearns equity research department. Featuring contributions from 77 analysts, e-volve is designed to provide investors with insight into how the Internet will affect every industry and every aspect of business.

The analysts expect the Internet to be the next leg in helping aerospace/defense companies drive down costs and improve operations. "The Internet will not revolutionize the aerospace and defense industry; instead it will streamline customer relations, reduce parts and material costs/inventories, increase cycle time, and improve communication within the organization," predicts Binder. Accordingly, the analysts view United Technologies Corporation as the aerospace/defense company most likely to benefit from the new Internet economy.

The analysts believe that over the long haul, the Internet should allow the industry's suppliers to better understand the movement and quantity of inventories for their customers and should help to better educate the suppliers. "In our view, the Web should help support United Technologies' goal of decreasing annual suppliers' costs by more than $1 billion and enhancing its large and growing after-market operation," explained Binder.

The analysts also believe, primarily through its Otis and Carrier subsidiaries, that United Technologies is aggressively moving to use the Internet to increase the number of products and services offered, enhance its final product, improve customer service, and reduce costs. Meanwhile, in aerospace, Pratt, Hamilton Sundstrand, and Sikorsky are using the electronic marketplace to reduce supplier costs, enhance their aftermarket sales, and improve communication and transparency within the organization, according to the analysts.

In the analysts view United Technologies' senior management team is placing a sharper focus on driving new business opportunities through the Internet, as well as using this medium to accelerate the company's effort to reduce purchasing costs. Specifically, they think that the company's business relationship with FreeMarkets Inc. (NASDAQ:FMKT) is evidence of its thrust to use the electronic marketplace to cut costs, making it an attractive stock pick.

In addition to the stock selection of the week, Bear Stearns will hold two virtual conference calls this week based on the e-volve report. The first call is scheduled for Tuesday, March 21st at 11:00 a.m. and will be hosted by seven Bear Stearns health care sector analysts. The second, scheduled for Wednesday, March 22 at 11:00 a.m., will examine advancements in the computer hardware sector. Server & enterprise hardware analyst Andrew Neff will host the call. Both calls will be supplemented by a slide presentation on the Bear Stearns Web site (www.bearstearns.com).

To learn more about the e-volve stock pick of the week, or to participate in the conference calls, members of the press may contact Michelle O'Brien at 212-272-6659.

Founded in 1923, Bear, Stearns & Co. Inc. is a leading worldwide investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC). With approximately $23.2 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers professional and correspondent clearing, including securities lending. Headquartered in New York City, the company has more than 10,200 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, San Francisco and San Juan; and an international presence in Beijing, Buenos Aires, Dublin, Hong Kong, London, Lugano, Sao Paulo, Shanghai, Singapore and Tokyo. For additional information about Bear Stearns, please visit our Web site at www.bearstearns.com

Any recommendation contained in this report may not be suitable for all investors. Moreover, although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. Bear Stearns may make markets and effect transactions, including transactions contrary to any recommendations herein, or have positions in the securities mentioned herein (or options with respect thereto) and may also have performed investment banking services for the issuers of such securities. In addition, employees of Bear Stearns may have positions and effect transactions in the securities or options of the issuers mentioned herein and may serve as directors of such issuers. Copyright (c) 2000. All rights reserved by Bear, Stearns & Co. Inc.