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AlliedSignal Automotive Products Group Opens Distribution Center

19 August 1998

AlliedSignal Automotive Products Group Opens Doors to Its First High-Tech Distribution Center for State-of-the-Art Product Delivery

    RUMFORD, R.I., Aug. 19 -- If it seems like AlliedSignal
Inc.'s automotive products are moving faster these days, they are.
AlliedSignal, in partnership with renowned supply chain management experts,
UPS Worldwide Logistics, has taken a giant step toward the new millennium with
faster, world-class product delivery technology and improved customer service
by officially opening its West Coast distribution center in Fernley, Nevada.
The new distribution center features cutting edge automation and information
systems technology which will provide faster, more accurate order processing
and deliveries of FRAM(R), Bendix(R), and Autolite(R) products to AlliedSignal
Automotive Products Group (APG) customers located in the West Coast region of
the U.S.
    The 256,000-square-foot West Coast Distribution Center in Fernley is
nearly fully operational.  The 710,000-square-foot East Coast Distribution
Center in Hebron, Kentucky is scheduled to begin operations November 1, 1998
with the benefits of the new transportation and distribution network expected
by year-end.  Immediate benefits for West Coast customers include a reduction
in order cycle time and state-of-the-art order tracking capabilities.  Once
the entire logistics network is fully functional, all AlliedSignal customers
will benefit by improved order accuracy, better line and unit fill rates, and
real time order status.  Additionally, customer receiving docks and accounting
departments will benefit since they will receive only one shipment per
purchase order.
    "Establishment of these two new distribution centers and best-in-class
logistics network will give our customers and us a true competitive edge in
the automotive aftermarket," said Brad Hays, Senior Vice President-Sales,
Aftermarket Americas for AlliedSignal APG.  "We're making a significant
investment in the distribution technology of the future -- one that has the
potential to propel AlliedSignal toward growth in the aftermarket business and
to leave the competition behind.  When both facilities are fully operational,
our customers will have what they need delivered to them with unprecedented
speed and precision," he added.
    According to John Sutthoff, Chief Operating Officer of UPS Worldwide
Logistics, "The alliance between AlliedSignal and UPS Worldwide Logistics will
allow the customer to take advantage of the best of both worlds:
AlliedSignal's global manufacturing and marketing of leading automotive
products and UPS Worldwide Logistics' global supply chain management
solutions."
    Features of the newly constructed West Coast Distribution Center include a
high-speed conveyance system with more than 150 electronic eyes monitoring
more than a mile of conveyor belts.  The facility also features highly
efficient "Pick to Light" technology, as well as the typical modes of
inventory management storage in a traditional distribution center.  This
technology, with more than 1,100 picking locations, efficiently routes workers
through the order fulfillment process.
    Under a multi-year agreement, UPS Worldwide Logistics will manage
distribution activities of AlliedSignal manufactured products originating from
AlliedSignal's North American manufacturing plants to more than 10,000
customer locations across North America.  UPS Worldwide Logistics's
responsibilities also include information technology, transportation
management, warehousing, packaging, reverse logistics and fleet management.
    The Automotive Products Group is one of AlliedSignal's 11 major business
units.  It manufactures and markets such products as FRAM(R) oil, air,
transmission and fuel filters; Prestone(R) and Holts(R) car care products;
Bendix(R) and Jurid(R) friction materials and brake products; and Autolite(R)
spark plugs.
    Established in 1993, UPS Worldwide Logistics is a third-party provider of
global supply chain management solutions, including logistics network design,
distribution, transportation management, warehouse operations, inventory
management, documentation for import and export, network optimization and
reverse logistics.  UPS Worldwide Logistics is part of UPS Logistics Group, a
wholly owned and independently managed subsidiary of United Parcel Service of
America, Inc.  The company's website is http://www.wwlog.com.
    AlliedSignal Inc. is an advanced technology and manufacturing company
serving customers worldwide with aerospace and automotive products, chemicals,
fibers, plastics and advanced materials.  Additional information on the
company is available on the World Wide Web at http://www.alliedsignal.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.