Surplus Savings from Initial Work Prompts More Improvements to Enhance Efficiency and Comfort for Public Housing Residents

MINNEAPOLIS, June 28, 2006 - Honeywell (NYSE: HON) today announced that the Harrisburg Housing Authority (HHA) has expanded its 12-year, $8.5 million performance contract to include an additional $2.9 million in energy-saving facility upgrades. Funded by surplus savings from the initial phase of work completed in August 2005 — along with the savings the new improvements will generate — the upgrades will help HHA continue to offset rising energy costs and reduced budgets while improving the comfort and quality of housing it provides to nearly 3,000 Harrisburg, Pa.-area residents.

The additional work is possible due to the success of the first phase of the energy-conservation and modernization program, which helped HHA reduce electricity use by 1.2 million kilowatt-hours per year. The projects also decreased carbon dioxide emissions by almost 760 tons annually. According to the U.S. Climate Technology Cooperation, this is the environmental equivalent of removing 160 cars from the road or planting 630 acres of trees.

The second phase of the program will touch 1,400 of the 1,700 units HHA manages and, combined with phase one savings, cut the authority's annual operating costs by an estimated $1.3 million. These savings are guaranteed under the performance contract with Honeywell, ensuring the work will not impact capital budgets or require additional taxpayer dollars.

"Like every housing authority, we're encouraged to strive for energy and operational efficiency," said Carl Payne, executive director of the Harrisburg Housing Authority. "Our performance contract with Honeywell is inclusive of financing for energy-related improvements and helps us achieve our goal of running our portfolio of properties as efficiently and economically as possible."

Under the extended contract, Honeywell will help HHA continue to conserve energy and reduce maintenance costs by updating windows and doors at two complexes, and replacing existing boilers, furnaces and domestic water heaters with high-efficiency gas models at select sites. In addition, technicians will add to water-conservation measures in the first phase by installing low-flow plumbing fixtures in kitchens and bathrooms in one of the housing communities. In total, the plumbing retrofits will help HHA save more than 44 million gallons of water per year, and cut consumption and cost by as much as 40 percent.

"We're committed to providing our residents with quality and affordable housing they can be proud to call home," Payne said. "The projects we've undertaken with Honeywell are helping us fulfill this mission, while saving money in the process."
In the initial round of work, Honeywell replaced outdated boilers and chillers with more efficient models, upgraded lighting systems, replaced windows and roofing at one high-rise complex and weather-sealed buildings to reduce heating and cooling losses throughout the year. To improve energy management and efficiency, Honeywell also upgraded the building control system, and replaced steam traps, rooftop ventilation units and radiator valves.

"The Harrisburg Housing Authority is taking a proactive approach to managing energy use and maximizing capital budgets," said Joe Puishys, president of Honeywell Building Solutions. "As energy prices continue to rise, more local, state and federal organizations will follow its lead. Performance contracts provide a financially viable means to fund critical projects that improve efficiency and comfort without financial strain."

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.

# # #

This release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on management's assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.