Honeywell Announces Strategic Alliance with FibrLINK to Improve Power Plant Efficiency in China; Honeywell's Unified Energy Solutions Help Plants Reduce Emissions and Improve Reliability in Meeting China's Surging Power Needs

PHOENIX--(BUSINESS WIRE)--Aug. 31, 2006--Honeywell (NYSE:HON) today announced a five-year strategic alliance with power industry network and services provider FibrLINK Communications Co., Ltd. The agreement will help China's power plants improve their energy efficiency and reduce emissions amid intensified interest in improving the industry's ability to meet China's escalating energy needs and environmental policies. Honeywell will provide its portfolio of energy solutions used to optimize efficiency of utility plants.

To meet increasing electricity demands, China -- the second-largest consumer of energy in the world -- is constructing new power generation plants and modernizing existing ones. The country is also examining environmentally preferable and more efficient ways to generate power amid its strong economic growth.

"China's rapid economic growth is a big contributor to the country's increased energy consumption, and the government has made it clear that steps need to be taken to conserve as much energy as possible," said Ji-Ye Wang, FibrLINK executive director and general manager. "Honeywell's applications, in combination with our power industry service network technology, will provide China's power plants a state-of-the-art solution that will help them meet the global benchmark for energy efficiency and environmental quality."

Power plant operators will be able to easily access Honeywell applications through FibrLINK's power industry service networks. Honeywell will monitor power generation in real time to predict future requirements, allocate loads across multiple steam turbine generators and heat amongst boilers, safeguard stable steam production while maintaining steam header pressure and deliver optimal combustion efficiency. Additional benefits include reduced heat and power production costs, optimized flue gas emissions, higher production capacity utilization and reduced maintenance.

"This agreement will allow China's power industry to be a key contributor to the country's goal of building a resource-saving and environmentally preferable society," said Jack Bolick, president of Honeywell Process Solutions. "The ever-growing demand for energy is one of the hottest issues around the world and no one feels that pressure more than the companies that produce energy. By optimizing their operations, China's power plants can better meet demand, and do so in a manner that will have less impact on the environment."

FibrLINK Communications Co., Ltd. (an SGCC Company) is an integrated provider of networking solutions and services that support the Internet and other public and private data, voice, and multimedia communications networks.

Honeywell International is a $30 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 www.honeywell.com. Honeywell Process Solutions is part of Honeywell's Automation and Control Solutions group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Process Solutions, access www.honeywell.com/ps.

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.