Honeywell Expands Gel-Spun Spectra Fiber Manufacturing

    COLONIAL HEIGHTS, Va.--Oct. 15, 2001--The Specialty Materials business of Honeywell today announced it is expanding production of its Spectra(R) high modulus polyethylene fiber (HMPE).
    The expansion will provide additional capacity to support an emerging increase in the demand for Spectra(R) fiber and Spectra Shield(R) composites.
    Dean Flatt, President and CEO of Specialty Materials, said the expansion would be accomplished in two phases. The Phase I investment of approximately $20 million will include the installation of a new gel-spinning line and additional drawing capacity at the company's Colonial Heights, Virginia, facility. The additional capacity is expected to be available by the end of the third quarter in 2002. "The new gel-spinning line will be capable of producing a new generation of fibers that will allow our key customers in armor, rope, cut protection, and other segments to enhance performance in their products," Flatt said.
    The second phase of the expansion, in the initial scoping stage, will encompass the construction of a new HMPE plant. The new plant will be designed with state-of-the-art processing technology and will be targeted to take Spectra(R) fiber properties to a new level. Although the location has not yet been selected, sites in Europe, Asia, and the United States will be considered.
    Lawrence Bossidy, Honeywell Chairman and CEO said, "we intend to continue investing aggressively in the high growth businesses of our portfolio like Spectra(R) fiber. This type of investment in our business is an investment in our customers, and we are committed to supporting their growth."
    Today's announcement comes one month after the company successfully commissioned its new multi-million dollar draw line announced in February of this year.
    Spectra(R) fiber, an extended-chain polyethylene fiber, has one of the highest strength-to-weight ratios of any manmade fiber. Light enough to float, it also exhibits superior resistance to chemicals, water, and ultra-violet light. Spectra(R) fiber is used in applications such as personal and vehicular armor, cut-resistant gloves and work-wear, ultra high-strength ropes, sail cloth for racing yachts, fishing line and many other applications where the fiber's high strength, light weight, and endurance are critical.
    Spectra(R) fiber is also the base material for Honeywell's patented Shield technology family of composite products. Shield technology utilizes Spectra(R) fiber in a unidirectional composite format. Spectra(R) fiber's excellent energy absorption characteristics combined with Shield technology has made the Spectra Shield(R) family of products one of the most preferred materials in the world for use in vehicular and personal body armor applications. Used by military and law enforcement agencies throughout the world, Spectra Shield(R) composite material has revolutionized armor systems since its inception in the late 1980s.

    Honeywell is a US$25-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; power generation systems; specialty chemicals; fibers; plastics; and electronic and advanced materials. Honeywell employs approximately 120,000 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.