UTC's Carrier Corp. Teams With FreeMarkets to Create Largest Asian-Based B2B Online Auction Market to Date.

Business Editors & High Tech Writers

SINGAPORE--(BUSINESS WIRE)--March 21, 2000

UTC Division Identifies Average Annual Savings of More Than 16 Percent On Electric Motors Through FreeMarkets(R) B2B eMarketplace

The Asia Pacific Operations of Carrier Corporation, a subsidiary of United Technologies Corp. (NYSE:UTX), today announced that it has created the largest Asian-based online auction market to date for more than US$200 million of commercial electric motors.

Carrier identified average annual savings of more than 16 percent over the anticipated three-year contract through FreeMarkets, Inc. (Nasdaq:FMKT), the world's leading B2B eMarketplace. Carrier and UTC have been working with FreeMarkets since 1996.

"I am very pleased with the phenomenal success of this market," said Geraud Darnis, president, Carrier Asia Pacific Operations. "Together, Carrier and FreeMarkets are reinventing the way business is done in Asia and have created bottom-line results for Carrier and new business opportunities for many Asian suppliers. It's truly a win-win situation."

More than 50 Asian motor suppliers from Japan, Korea, China, Thailand, Taiwan, Australia, and India competed for Carrier's business during the two-day motors event, which included 13 of the company's principle Asian manufacturing locations. Toshiba Carrier, a global alliance formed by the two companies in 1999, also participated as a buyer in the competitive bidding event. The auction marks the first time a Japanese buyer, Toshiba Carrier, participated in an online market.

The event was simulcast live to 16 Carrier buyer locations and broadcast to all suppliers so that they could see and react to real time bids being made in the marketplace. In addition, Carrier and Toshiba site management were provided with a pan-Asian view of the motor market and a continuous stream of dynamic pricing and market information required to make award decisions.

"FreeMarkets capabilities in Asia are crucial to companies like UTC which are committed to deploying B2B e-commerce solutions on a truly global scale," said Talley Goodson, vice president of Asia Operations for FreeMarkets. "I am very excited about the success of the motors event and we look forward to accelerating the adoption of FreeMarkets B2B eMarketplace across the Asia region."

From its offices in Hong Kong, Singapore and New Delhi, FreeMarkets provides on-the-ground support in Asia to its multinational buyer clients, as well as industrial buyers based in China, Hong Kong, Singapore, Korea, Indonesia and other Asian markets.

About Carrier

Carrier Corp. is the world's largest manufacturer of heating, air conditioning and refrigeration systems and equipment. Additional information about the company can be found on the Web at: www.carrier.com.

About United Technologies

United Technologies Corp., based in Hartford, Conn., provides a broad range of high technology products and support services to the building systems and aerospace industries. Those products include Pratt & Whitney aircraft engines, space propulsion systems and industrial gas turbines; Carrier heating, air conditioning and refrigeration; Otis elevator, escalator and people movers; Hamilton Sundstrand aerospace and industrial products; Sikorsky helicopters and International Fuel Cells power systems. Additional information on UTC is available on the Internet at www.utc.com

About FreeMarkets

FreeMarkets is the world's leading B2B eMarketplace, with online auction markets for industrial parts, raw materials, commodities and services. The Company created online auctions for over $2.7 billion worth of purchase orders in 1999 and nearly $1.0 billion worth of purchase orders in 1998. Since 1995, FreeMarkets has created online auctions for products in more than 70 supply verticals, including injection molded plastic parts, commercial machinings, metal fabrications, chemicals, printed circuit boards, corrugated packaging and coal. More than 3,000 suppliers from over 45 countries have participated in the FreeMarkets B2B eMarketplace. FreeMarkets provides access to its eMarketplace to industrial buyers and suppliers. The FreeMarkets B2B eMarketplace includes industry-leading online auction technology, technical operations, market making services, access to a global database of suppliers and supplier research, call center support to buyers and suppliers in over 30 languages, and marketplace rules. The Company's current clients include United Technologies Corp., The Quaker Oats Company, Owens Corning, Eaton Corporation, Emerson Electric Company, FirstEnergy Corp., SmithKline Beecham plc, Navistar International and Delphi Automotive Systems Corporation. FreeMarkets can be found on the Web at www.freemarkets.com. FreeMarkets is a registered trademark of FreeMarkets, Inc.

Forward-looking statements

Certain statements in this press release are "forward-looking statements" as defined under securities law. UTC's operations, products and markets are subject to a number of risk factors, which may cause actual results to vary materially from those anticipated in the forward-looking statements. UTC's SEC filings, as updated from time to time, contain important information identifying a number of these risk factors, including economical, political, climatic, currency, regulatory, technological, competitive and other important factors. This information can be found in the Business section of UTC's Annual Report on Form 10-K under the headings "Description of Business by Operating Segment" and "Other Matters Relating to the Corporation's Business as a Whole," as updated by UTC's other SEC filings from time to time.

Any forward-looking statements should be evaluated in light of these important risk factors.