Honeywell to Receive Additional $29.1 Million Payment from BorgWarner Turbo Systems to Settle Patent Infringement Suit

    TORRANCE, Calif.--June 23, 2003--Honeywell announced today that BorgWarner will pay it $29.1 million to settle its patent dispute relating to variable geometry turbochargers. This settlement grants BorgWarner a limited license under the relevant Honeywell patent.
    The settlement follows a January 2003 ruling by the district court in Dusseldorf, Germany requiring BorgWarner to cease production of certain models of its variable turbine geometry (VTG) turbochargers in and from Germany that infringe the Honeywell patent. Following a temporary injunction granted by the same court, BorgWarner had earlier paid Honeywell $25 million in exchange for a license through June 30, 2003.
    "We're delighted to have reached a settlement with BorgWarner that provides us a fair return on our pioneering variable geometry turbocharger technology, while enabling BorgWarner to meet its commitments to our mutual customers," said Rob Gillette, president and CEO of Honeywell's Transportation and Power Systems business.
    Honeywell's Garrett unit, which has a long-standing reputation as a leading innovator of turbocharging technology, helped pioneer variable geometry turbocharging in the 1980s.
    Garrett Engine Boosting Systems is a division of Honeywell Transportation and Power Systems. With $1.4 billion in revenues in 2002, Garrett is the world's leading innovator of turbocharging technology.
    Honeywell International is a diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; specialty chemicals; fibers; and electronic and advanced 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.

    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.