Chattanooga Housing Authority and Honeywell Reduce Energy Emissions and Annual Costs by $1.25 Million.

CHATTANOOGA, Tenn. -- $10 Million Performance Contract Will Allow the Housing Authority to Pay for Upgrades with Guaranteed Energy Savings

The Chattanooga Housing Authority (CHA) and Honeywell (NYSE:HON) today announced the kickoff of a 12-year project that will reduce energy consumption at 18 housing authority sites while substantially decreasing emissions. The project involves energy- and water-saving retrofits -- performed under a $10 million energy savings performance contract between CHA and Honeywell -- expected to generate steady-state savings of more than $1.25 million per year for the CHA and U.S. Department of Housing and Urban Development (HUD).

Under the contract, Honeywell will install energy-efficient lighting and programmable thermostats for residents and common areas, and replace electric-resistance wall heaters with high-efficiency heat pumps in some units. Technicians also will install low-flow plumbing fixtures and appliances to reduce water consumption, among other improvements.

Honeywell guarantees that the energy and water savings will completely fund the upgrades and will not change CHA operating budgets.

"The performance contract provides an infusion of capital funds for improvements and helps save taxpayer dollars," said Matt Powell, executive director of the Chattanooga Housing Authority. "With assistance from Honeywell and HUD, we will be able to meet our energy-efficiency goals and save money in the process."

The project will have numerous benefits for Chattanooga and its residents. Anticipated annual savings include:

--  Clean drinking water saved:              57 million gallons

--  Electricity saved:                       11 million kilowatt-hours

--  Carbon dioxide emissions reduced:        16.8 million pounds

--  Sulfur dioxide emissions reduced:        82,700 pounds

--  Nitrogen oxide emissions reduced:        39,000 pounds

--  Mercury emissions reduced:               122 grams

The amount of electricity saved could power more than 1,000 homes on average per year. In addition, the reduction in carbon dioxide is equivalent to taking 1,400 cars off the road -- both significant results. The project also will provide long-term employment and training opportunities for CHA residents, and include the participation of local minority- and female-owned businesses.

"The Chattanooga Housing Authority is taking a proactive approach to managing energy use and protecting the environment," said Joe Puishys, president of Honeywell Building Solutions. "As energy prices continue to rise, more local, state and federal organizations will follow its lead. Performance contracts provide a financially viable means to fund these projects, while creating more comfortable, environmentally friendly places to live and work."

The Housing Authority of the City of Chattanooga, Tenn. (CHA) is a public housing agency funded primarily through rents and federal affordable housing programs. CHA manages nearly 3,000 unit of affordable housing for the residents of Chattanooga, and operates a program to provide over 3,000 vouchers for rental subsidies for low-income families to live in privately-owned rental housing across the City. In addition, CHA operates many programs to strengthen self-sufficiency, education and employment opportunities among its residents.

Honeywell International is a $26 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry;

automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, Chicago and Pacific Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. For additional information, please visit www.honeywell.com. Honeywell Building Solutions is part of the Honeywell Automation and Control Solutions business group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Building Solutions, access www.honeywell.com/buildingsolutions.

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 as further described in our filings under the Securities Exchange Act.