Honeywell Withdraws Preliminary Injunction Following Initial $25 Million Settlement Of Patent Infringement Litigation Against BorgWarner

    MORRISTOWN, N.J.--Oct. 21, 2002--Honeywell announced today that it has withdrawn its preliminary injunction against BorgWarner in a turbocharger patent infringement case, following an initial $25 million settlement. The preliminary injunction no longer served any useful purpose in light of the settlement that Honeywell earlier reached with BorgWarner.
    Under the terms of that settlement, BorgWarner paid Honeywell an up-front cash payment of $25 million. In exchange, and in order to support its automotive customers, Honeywell permitted BorgWarner to continue selling its KP39 variable geometry turbochargers covered by the injunction through June 2003.
    Honeywell entered into the initial settlement agreement with BorgWarner after winning the preliminary injunction from the District Court in Dusseldorf, Germany last July. The hearing for a permanent injunction is scheduled before the same court on December 12, 2002.
    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 108,000 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.