Honeywell Announces $1.3 Billion in New Aerospace Contracts at Paris Air Show.

Business Editors

Paris Air Show 2003

PARIS--(BUSINESS WIRE)--June 13, 2003

Honeywell

Pacts Signed with Customers Including General Electric,

easyJet, Continental Airlines, Embraer, Airbus, Boeing

Honeywell (NYSE: HON) today said that its aerospace business has signed more than $1.3 billion in new contracts with major companies including General Electric, easyJet, Continental Airlines, Embraer, Airbus and Boeing.

The pacts, announced at the Paris Air Show, include agreements to deliver avionics, engine controls, auxiliary power units (APU), wheels and brakes and maintenance services.

Of the new contracts, Honeywell's largest single pact is a $728 million agreement with easyJet to deliver a variety of products for 120 Airbus A319 aircraft, with options for an additional 120 aircraft. The products to be provided include an avionics suite; APUs, including a 10-year APU maintenance agreement; engine controls; and wing anti-ice valves.

"These new contracts demonstrate that major companies believe in Honeywell's ability to add significant value in an increasingly competitive and global aerospace market," said Robert D. Johnson, Honeywell Aerospace's President and CEO. "By placing their faith in Honeywell products, technologies and services, our customers have acknowledged that we provide the edge they need to reduce costs and increase reliability."

In addition to the easyJet contract, the other new pacts are with:

-- General Electric - $290 million to supply pneumatic products

for the GE-Pratt & Whitney Engine Alliance GP7200 engines for

the Airbus A380. The package also consists of an Air Turbine

Starter and six pneumatic system valves that include an air

turbine start valve, high and low pressure turbine clearance

control valves, a start transient bleed valve, the core

compartment cooling valve and an anti-ice valve for the

nacelle. Honeywell is also to supply accessories and valves

for GE's CF6-80C2 engines for the U.S. Air Force C-5

transport.

-- Continental Airlines - a $115 million wheel and brake services

agreement for Continental's fleet of aircraft was extended

through 2013. The contract marks Honeywell's continued

commitment with the airline for the repair and overhaul of

wheels and brakes. The fleet that to be serviced by Honeywell

consists of Continental's Boeing 737, 757 and 767, totaling

more than 350 aircraft. Additionally, Continental recently

selected Honeywell's wheels and brakes for its Boeing 737-900

aircraft.

-- Embraer - $100 million to provide Primus Epic integrated

cockpits for 100 EMB190 aircraft purchased by JetBlue. JetBlue

also has an option for 100 additional EMB190 aircraft. Primus

Epic is a new avionics technology that integrates multiple

aircraft electronic systems and information into a single

cabinet for increased reliability and simplified maintenance,

while reducing aircraft wiring and weight.

-- Airbus - a $30 million agreement in which Honeywell will

deliver a next-generation version of the Honeywell/Thales

MCS-7000 Multi-Channel Satellite Communications System 

(SATCOM) to Airbus for its new A380 double-decker jet. The

contract extends over 15 years and includes follow-on sales of

spare units, product support, and other after-market business.

-- Airbus - a $30 million dollar agreement to provide four ozone

converters per A380 aircraft. The converters will improve

cabin air quality by decomposing ozone gas.

-- Boeing - a $30 million agreement to develop and supply a

next-generation weather radar for the U.S. Air Force's growing

fleet of Boeing C-17 "Globemaster" transport aircraft. The

contract was awarded by Boeing on behalf of the Air Force. The

new RDR-4000M radar will feature a new capability known as 3D

Buffer Processing(R).

-- Boeing - Honeywell's certified package of avionics for Boeing

707-300 aircraft can be used to qualify the aircraft for

flight on air routes covered by new Reduced Vertical

Separation Minima rules. Financial terms of the agreement

weren't disclosed.

-- China Aviation Supplies Import and Export Group Corp. -

Honeywell's Enhanced Ground Proximity Warning System (EGPWS)

has been selected by CASGC to provide terrain alerting for 300

aircraft. Financial terms of the agreement weren't disclosed.

EGPWS compares aircraft location, as determined by the

airplane's navigation system, with a worldwide terrain

database. It provides pilots an electronic map of nearby

terrain, color-coded according to terrain elevation. The

system also sounds an audible alert if the aircraft comes

within approximately one minute's flying time of terrain.

-- Lockheed - Honeywell will provide a variety of avionics for

Lockheed's F-35 Joint Strike Fighter aircraft. Financial terms

of the agreement weren't disclosed. Avionics include the

Inertial Navigation System, Tactical Navigation Unit, Low

Observable Air Data System, and the Low Probability of

Intercept Radar Altimeter.

Honeywell International is a US$22 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; specialty chemicals; fibers; and electronic and advanced materials. Based in Morris Township, N.J., USA, 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 about Honeywell International, please visit www.honeywell.com.

Honeywell's aerospace business is headquartered in Phoenix, Arizona, USA. It is a leading global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.

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.