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HONEYWELL SIGNS OPTION AGREEMENT TO RE-ESTABLISH SOUTH AFRICAN SUBSIDIARY

 MINNEAPOLIS, Aug. 4 /PRNewswire/ -- Honeywell Inc. (NYSE: HON) said today it signed an option agreement to re-establish a subsidiary in South Africa.
 The agreement, reached in anticipation of an invitation from the African National Congress for U.S.-based companies to reinvest in South Africa, is an option to purchase the Martech business of Murray & Roberts, a diversified engineering and construction firm based in Johannesburg, South Africa.
 Martech currently distributes Honeywell systems and products in South Africa and other sub-Saharan countries. Murray & Roberts purchased Martech from Honeywell in December 1986, when Honeywell divested its operations in South Africa.
 The agreement, which expires Nov. 1, 1996, obliges Honeywell to exercise its purchase option, provided:
 -- The ANC calls for the lifting of economic and financial sanctions against South Africa; and
 -- Honeywell is satisfied the purchase would not affect its business relationships with U.S. municipalities that restrict suppliers' involvement in South Africa.
 Terms of the option agreement were not disclosed. If the option is exercised, the business would become a wholly owned Honeywell Inc. subsidiary.
 "We believe that without responsible investment, South Africa will not have the sound economic foundation necessary to support an expanded, skilled labor force, and to ensure the peaceful transition to an equitable, multi-racial society," said Michael R. Bonsignore, Honeywell chairman and chief executive officer.
 "In addition, we see strong business opportunities in South Africa. With Honeywell's long-term experience in global operations, leadership in control technology and reputation for fair and ethical practices, we hope our presence would help accelerate the transition to a multi-racial society," he said.
 Honeywell said it would continue affirmative action policies established by Martech, such as employing a multi-racial work force and maintaining a multi-racial board of directors.
 The companies said that, if the option is exercised, the transition of ownership would not affect the quality of service to current Martech customers. All Martech employees would continue as employees of Honeywell, if the option is exercised.
 "We are delighted that the changing South African environment is facilitating the return of Honeywell to the country," said Ashton Corrigall, executive director-trading division of Murray & Roberts.
 Honeywell said it supports the business practices guidelines outlined by the Executive Leadership Council, a network of African- American executives in the United States concerned with economic and public policies affecting African-Americans, corporations and communities. Those guidelines include supporting community-based education programs, mentor relationships with Black South African colleges; and a forum for networking, training and outreach for Black African professionals.
 Honeywell also said it would support business guidelines developed by a South African interim government, when one is established.
 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 55,000 people in 95 countries on six continents and had 1992 sales of $6.2 billion.
 -0- 8/4/93
 /EDITORS NOTE: Available for interviews on this subject today is Honeywell executive Mannie Jackson, a founder and past president of the Executive Leadership Council, a U.S. non-profit organization for African-American business executives that has been involved with South African issues./
 /CONTACT: Kevin Whalen, Honeywell Public Relations, 612-951-0070/
 (HON)


CO: Honeywell, Inc. ST: Minnesota IN: CPR SU:

AL -- MN005 -- 9245 08/04/93 09:35 EDT
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Publication:PR Newswire
Date:Aug 4, 1993
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