Project supports city's drive toward renewable energy; earns $1 million rebate from State of California

CATHEDRAL CITY, Calif., Oct. 11, 2004 - Honeywell (NYSE: HON) and Cathedral City, Calif., today announced a $2.7 million Energy Savings Performance Contract for building and energy efficiency improvements that will help reduce the city's annual operating costs by 33 percent.

The project, which includes the installation of a solar canopy on the roof of the civic center parking garage, is scheduled to begin in mid-October. A
$1 million renewable energy rebate from the State of California will provide partial funding for the project.

Built using more than 1,600 photovoltaic solar panels, the parking garage canopy will generate power while shielding vehicles from the sun. The canopy supports the city's drive toward using clean, renewable energy and will reduce CO2 emissions by an estimated 514 tons each year - the equivalent of removing 103 automobiles from the road.

The use of solar energy made the city eligible for the $1 million state rebate. Administered through the local utility, the rebate will reduce the net cost of the project. And the energy savings that result from the citywide upgrades and improvements will pay for the $1.7 million balance over the next nine-and-a-half years. There is no financial risk to the city because Honeywell guarantees the results.

"Solar energy gives the city a reliable way to generate savings and affords us protection against energy rate increases," said Donald Bradley, the city manager of Cathedral City. "Honeywell provided a direction that was in line with our specific needs. The project leverages our natural Southern California resources, and saves taxpayers money on our already tight budgets."

During the nine-month construction phase of the project, Honeywell will install the solar canopy, as well as energy-efficient lighting and controls throughout the city buildings. This includes upgrades to the civic center, fire stations and public works buildings. Honeywell also will upgrade traffic signals from incandescent lights to light emitting diodes (LEDs), which use less energy and have a longer life span. When completed, this phase is expected to cut the city's annual (electrical) energy consumption by 26 percent.

"Cathedral City is at the front of the movement toward green, renewable energy," said Joe Puishys, president of Honeywell Building Solutions. "As energy prices continue to rise, more local state and federal entities will follow its lead. Performance contracts provide a financially viable means to fund these projects, while also creating more comfortable, environmentally friendly places to live and work."
Honeywell and Cathedral City are currently planning a second phase of the project, which will focus on using alternate sources of renewable energy, such as waste-to-energy conversion, to generate revenue for the city.

This work is another step in the city's efforts to reduce energy consumption. The city saw a 20 percent decrease in energy usage when it switched to a four-day work week in 1997.

Honeywell International is a $23 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., 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, please visit Honeywell Building Solutions is part of the Honeywell Automation and Control Solutions business group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Building Solutions, access

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