HONEYWELL TO CO-PRODUCE NAVIGATION SYSTEMS IN RUSSIA; First Western-designed avionics to be produced in Russia for domestic market.

MINNEAPOLIS--(BUSINESS WIRE)--June 12, 1995--Honeywell has signed a teaming agreement with Ramensky Priborostroitelny Zavod (RPZ), the leading Russian manufacturer of inertial reference systems, for the co-production of Honeywell navigation systems for sale to customers in the former USSR. This represents the first time Western-designed avionics will be co-produced in the Commonwealth of Independent States (CIS) for that domestic market.

RPZ (Ramensky Instrument Manufacturing Plant) is an open joint stock company based near Moscow. The agreement calls for co-production of Honeywell's inertial reference systems for use in the Commonwealth of Independent States, Georgia and the Baltic states.

An inertial reference system is an advanced navigational system that locates the position of an aircraft, without reference to external sources, using ring laser gyros and accelerometers. Thus, it is a reliable source of aircraft "attitude," heading and position for the aircraft that tells the pilot not only where the airplane is relative to the earth (nose up, wings level, etc.) but also the airplane's latitude and longitude.

Potential customers for the inertial systems include civil aircraft manufacturers, design bureaus and airlines. The objective is to eventually have the majority of the units produced in Russia, with Honeywell supplying critical inertial components from the United States.

The agreement calls for joint sales and marketing and product support from RPZ and Honeywell. RPZ will provide in-country customer support and repair service for the systems they co-produce with Honeywell.

"This is a long-term arrangement that is part of our overall strategy of establishing Honeywell as an integral part of the CIS industry infrastructure," said D. Larry Moore, Honeywell president and chief operating officer. "We're not a newcomer to this part of the world by any means, so we know the importance of being recognized as a company that's here for the long run." The agreement initially calls for production of Honeywell's 10-MCU-size inertial reference systems, but it is expected that the teaming could eventually expand to include other Honeywell navigation systems.

The team is working with U.S. State, Commerce and Defense departments on appropriate export licenses for each stage of the program.

Honeywell has been doing business in the Commonwealth of Independent States since 1974. In January 1993, Honeywell won a contract from Tupelov to supply inertial reference systems for its new twin-engine commercial airliner, the Tu-204, a medium-range twinjet that carries about 200 passengers. Now in service with several Russian airlines, the twinjet marks the first time new commercial aircraft from the former Soviet republics have been fitted with Western avionics. Since then, Honeywell also has signed contracts with Aviastar, the largest civil aircraft manufacturer in the CIS, to supply inertial systems for the Tu-204.

Honeywell also is proceeding to retrofit and certify a variety of avionics systems, including satellite communications systems, collision avoidance systems and inertial systems, on existing Russian airliners.

Honeywell is a member of the Russian Union of Aviation Industry, an organization chartered to define the direction of the aviation industry in the former Soviet Union.

Honeywell is a global controls company providing products, systems and services that increase comfort, environmental protection, energy conservation, productivity and safety in homes and buildings, industry, and aviation and space. The company employs 50,000 people in 95 countries on six continents and had 1994 sales of $6.1 billion.

CONTACT: Honeywell Inc., Minneapolis

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