Honeywell Forecasts 2007 Sales Up 5% to $32.6 Billion and Earnings Up 13-17% to $2.85 - 2.95 Per Share

2007 Free Cash Flow Forecast of $2.4 - 2.6 Billion

MORRIS TOWNSHIP, N.J., Dec. 14 -- Honeywell announced today that it expects sales of approximately $32.6 billion, up 5 percent, and earnings per share of $2.85 - 2.95, up 13 - 17 percent, in 2007. Cash flow from operations is expected to be $3.2 - 3.4 billion and free cash flow (cash flow from operations less capital expenditures) is expected to be $2.4 - 2.6 billion.

The company also confirmed 2006 financial guidance. Sales for 2006 are anticipated to be $31.2 billion and earnings are expected to be $2.51 - 2.53 per share. Cash flow from operations is anticipated to be approximately $3.0 billion and free cash flow (cash flow from operations less capital expenditures) is expected to be approximately $2.2 billion. Honeywell has repurchased more than $1.7 billion in stock and reduced its total outstanding share count by 5 percent in 2006. The company also recently announced a 10 percent increase in the annual dividend rate to $1.00 per share, the third 10 percent increase in the past three years.

"In 2006, Honeywell continued to build on its track record of financial performance," said Honeywell Chairman and Chief Executive Officer Dave Cote. "We expect to reach a new performance threshold by surpassing $31 billion in sales, delivering over 30 percent EPS growth and generating approximately $2.2 billion in free cash flow for the year."

"We expect continued strong performance in 2007," concluded Cote. "Strong positions in industries with favorable macro-trends and attractive long-term prospects are expected to more than offset modest softening in global economic conditions. With our operating strength, this should translate into double- digit earnings growth and increased free cash flow in 2007."

Honeywell will discuss its results during its investor conference call and webcast starting at 9:00 a.m. EST today. To participate on the conference call, please dial (706) 643-7681 a few minutes before the 9:00 a.m. EST start. Please mention to the operator that you are dialing in for Honeywell's investor conference call. The live webcast of the investor call will be available through the "Investor Relations" section of the company's Website http://www.honeywell.com/investor. Investors can access a replay of the conference call from 1:00 p.m. EST, December 14, until midnight, December 21, by dialing (706) 645-9291. The access code is 1718233.

Honeywell International is a $31 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 http://www.honeywell.com/.

This release contains certain statements that may be deemed "forward- looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements.