Honeywell, FAA Enter Agreement To Develop NEXCOM Aircraft Radio; New VDL-Mode 3 Radio Will Help Relieve Frequency Congestion

    REDMOND, Wash.--Feb. 19, 2002--Honeywell announced today that it has signed an agreement with the Federal Aviation Administration (FAA) to develop a new air transport category aircraft radio with digitized voice, a data rate of 31.5 kilobits per second and the ability to share a radio frequency.
    The new radio will meet FAA requirements for Very High Frequency Digital Link-Mode 3 (VDL-Mode 3) avionics and support the FAA's Next-Generation Air/Ground Communications (NEXCOM) program. The FAA plans to make VDL-Mode 3 radios mandatory in U.S. airspace by 2009 to increase the capacity of the aviation radio band.
    The regulation will affect approximately 6,000 air transport aircraft, creating demand for 12,000 replacement radios worth $300 million. The rule will also cover approximately 170,000 other U.S. aircraft including business airplanes, regional transports, helicopters and personal aircraft. Honeywell will develop VDL-Mode 3 radios for these applications, as well.
    With VDL-Mode 3, each radio frequency will have four channels to accommodate up to four voice conversations at one time. As an alternative, one or two of the channels can be dedicated to data communication for air traffic control purposes.
    The new air transport radio will be based on Honeywell's current Quantum(TM) Series RTA-44D radio. The RTA-44D provides analog voice communication, and handles data at 2.4 kilobits per second. It was introduced in 1996, and more than 4,500 are in service.
    Honeywell's air transport NEXCOM radio is scheduled for certification in mid-2004.
    Honeywell's aerospace business has sales of $9 billion and is headquartered in Phoenix, Arizona, USA. It is a leading global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.
    Honeywell is a US$24-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; specialty chemicals; fibers; plastics; and electronic and advanced materials. Honeywell employs approximately 115,000 people in 95 countries and is traded on the New York Stock Exchange under the symbol HON, as well as on the 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. Additional information on the company is available on the Internet at www.honeywell.com.

    This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Securities Exchange Act.