Honeywell Announces More Than $2 Billion in New Product and Service Contracts for Commercial and Military Aircraft At Singapore Air Show.

Business Editors

MORRIS TOWNSHIP, N.J.--(BUSINESS WIRE)--Feb. 26, 2002

Honeywell To Resume Production Of Chinook Engines For U.S. Army

And Will Provide Depot Support For U.K. Ministry of Defence

Company to Supply Secondary Electric Power Distribution System

(SEPDS) And Aircraft Environment Surveillance

System (AESS) For Airbus A380

Honeywell Environmental Control And Landing Systems Selected For

Military And Commercial Aircraft

Honeywell (NYSE: HON) announced today at the Singapore Air Show that it has been selected to provide more than $2 billion in new aerospace products and services for commercial and military aircraft around the world.

The contracts cover wins with the United States Army, the United Kingdom Ministry of Defence, Airbus, and two Vietnamese airlines. The total expected revenue of the agreements is $2.001 billion.

"These wins demonstrate the broad technologies, products and value-driven services Honeywell continues to bring to its global Aerospace customers," said David Cote, Honeywell's President and Chief Executive Officer.

Chinook Engine Agreements

Honeywell's largest contract win is from the U.S. Army to begin building its T55-GA-714A upgraded gas turbine engine for the Army's CH-47D Chinook helicopter. The upgraded T55-GA-714A engines deliver a 22% improvement in power, 7% better fuel economy and greater reliability over older T55-L-12 engines. The contract's estimated revenue is $1.1 billion over the next eight years if all engine options are exercised.

"The T55-GA-714A engine provides the Army with a cost-effective way to improve its existing Chinook engines with modern technology while enhancing the mission capability of the helicopter, with improved weight lift capability in a high and hot environment," said Bob Johnson, Honeywell Aerospace President and CEO.

In a separate agreement, Honeywell will provide complete depot support on the company's T55 Chinook helicopter engines for the United Kingdom Ministry of Defence (UK MoD). The five-year, $80 million contract includes T55 engines on British Chinook model HC2, HC2a and HC3 aircraft. The agreement also establishes a Strategic Partnering Arrangement with the UK MoD's Defence Aviation Repair Agency (DARA), who will perform the repair, overhaul and testing of the engines.

New Airbus Wins

Honeywell will provide the Secondary Electric Power Distribution System (SEPDS) and an integrated safety and surveillance system called the Aircraft Environment Surveillance System (AESS) for the new Airbus A380 Super Jumbo Jet. Revenue from the two systems is estimated at more than $710 million over a 15-year period, including follow-on sales of spare units and other aftermarket business.

The A380 will be the first commercial aircraft to incorporate a Solid State Power Control (SSPC)-based Secondary Electric Power Distribution System. The SEPDS uses programmable SSPC devices in place of traditional electro-mechanical circuit breaker technology, providing benefits to the aircraft in terms of load management, fault isolation, diagnostic health monitoring, and improved flexibility to accommodate modifications and system upgrades.

The AESS will incorporate the functions of Honeywell's Enhanced Ground Proximity Warning System (EGPWS), its next-generation Traffic Alert and Collision Avoidance System (TCAS) combined with Mode-S Transponder capability, and next-generation weather radar system.

"Honeywell's great diversity of innovative products, technologies and services will contribute to making Airbus' A380 a success in the jumbo jet market," Johnson said. "With the addition of these new systems, Honeywell has been selected five times as a supplier for the world's largest passenger airliner. This is an honor and opportunity for us to introduce and deliver the advanced technology solutions that Airbus and our industry expects for the 21st Century."

The three previously selected programs are: the next generation Flight Management System (FMS); The Electromechanical Thrust Reverser Actuation System (E-TRAS) in partnership with Snecma Control Systems, and the Pneumatic System on the Rolls Royce Trent 900 engine.

ECS and Landing System Agreements

The company was selected by BAE SYSTEMS to supply three major airframe systems and a unique part of the mission system for the Nimrod MRA4 turbo-jet powered maritime reconnaissance aircraft. The development and original equipment contract has expected revenues in excess of $100 million over an eight-year period. Honeywell Normalair-Garrett in Yeovil, UK will supply the Environmental Control System (ECS), including the Cabin Pressure Control, the Hydraulic Power Generation System and the Oxygen Breathing System, as well as rotary Sonobuoy Dispensers.

Honeywell was also selected to supply wheels and brakes on Hainan Airlines' 10 new Boeing 767-300s and to retrofit new wheels and brakes on six existing 767-300s for Vietnam Airlines. Expected revenue from each agreement is nearly $11 million over a ten-year period.

Honeywell's aerospace business has sales of $9 billion and 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.

Honeywell is a US$24-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; specialty chemicals; fibers; plastics; and electronic and advanced materials. Honeywell employs approximately 115,000 people in 95 countries and is traded on the New York Stock Exchange under the symbol HON, as well as on the 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. Additional information on the company is available on the Internet at www.honeywell.com .

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.