Performance Contract Will Upgrade Building Systems at Elementary Schools and Improve Comfort and Efficiency

MINNEAPOLIS, June 12, 2006 - Honeywell (NYSE:HON) today announced a $2.2 million project that will help three elementary schools in Long Island, N.Y. — part of the Merrick Union Free School District — cut energy costs while improving comfort for students and staff. The resulting work, performed under an energy savings performance contract, is expected to save the district $125,000 in annual energy and operational costs. Honeywell guarantees the savings will pay for the upgrades over the 18-year term of the contract. So the improvements will not raise the operating budget of the Nassau County district.

"The building systems at the schools are expensive to maintain and well past their useful lives," said Anthony Cedrone, assistant superintendent for business and technology at Merrick Union Free School District. "This performance contract replaces the systems with newer, more efficient technology while guaranteeing savings that enable the district to afford these valuable upgrades."

The work involves infrastructure upgrades at Lakeside, Birch and Chatterton elementary schools, which serve more than 1,900 students. Honeywell will replace aging boilers at all three schools with more efficient units that will significantly reduce operating and maintenance costs. Additionally, Honeywell will bring gas into each boiler room for cleaner burning, making the units more environmentally friendly.

"These boilers were made in the 1950s," Cedrone said. "Considering how much energy costs have soared since then, it is easy to see that we need newer technology to meet our demands."

In addition, Honeywell will install a control system that can engage heating and ventilation equipment according to occupancy schedules. For example, the system will automatically lower temperatures at nighttime when the buildings are vacated. It also will allow facility personnel to monitor and control temperatures from a single location, increasing productivity.

The contract also calls for Honeywell to retrofit and replace steam traps in the buildings, many of which are currently inoperable. This will greatly reduce steam consumption and improve overall comfort in the classrooms, as well as eliminate the need for future maintenance.

Finally, Honeywell will replace existing lighting systems with new technology that will reduce energy consumption and improve aesthetics. Occupancy sensors will reduce burn time in empty rooms to further cut costs.

Honeywell expects to complete the upgrades by September, in time for the new school year.

"Rising energy costs have become everyone's concern, and organizations that operate on tight budgets need to understand every option available to stabilize and reduce those costs," said Joe Puishys, president of Honeywell Building Solutions. "Performance contracts are the best option to lower costs without impacting fixed budgets. That, in turn, enables school districts to make needed improvements and concentrate on their top priority — providing a quality education for students."

Honeywell International is a $30 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 www.honeywell.com. 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 www.honeywell.com/buildingsolutions.

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