27.07.2006 12:00:00

Honeywell Helps West Chester University Cut Costs, Conserve Energy with $18.7-Million Campus Modernization Project

Performance Contract Enables School to Finance Upgrades through $1.7 Million in Guaranteed Annual Savings on Utility Bills and Other Energy Expenses

Honeywell (NYSE:HON) today announced a 15-year, $18.7-millionenergy savings and building modernization project with West ChesterUniversity (WCU) of Pennsylvania, located in the Philadelphia area andpart of the Pennsylvania State System of Higher Education.

The project, which spans nearly 60 buildings on the 402-acrecampus, includes infrastructure upgrades, such as lighting, heating,ventilation and cooling (HVAC) equipment; energy and waterconservation measures; and a control system to centralize and optimizeenergy management across the university. As a result, Honeywell willhelp WCU offset the impact of rising energy costs and tightenedbudgets while reducing maintenance costs and improving comfort formore than 14,000 students, faculty and staff on campus. Adding acompelling environmental outcome, the project also will decreasegreenhouse gas emissions.

WCU will finance the work from the energy and operational savingsgenerated by the project. Those savings -- expected to beapproximately $1.7 million per year over 15 years, or 20 percent ofthe school's current energy bill -- are guaranteed by Honeywell undera performance contract with the university. This ensures the upgradeswill not impact capital budgets or require additional taxpayerdollars.

"We were facing very high energy costs even before the recentincreases in world prices," said Bruce Wilson, energy manager for WCU."We realized we had to get those costs under control before they hadan impact on student fees. The most impressive changes at first willcome from lighting improvements, which will save electricity, andprovide better color and output. We can cut the wattage of manyfixtures by up to two thirds, for example."

The project started when Honeywell completed an energy audit toidentify areas where upgrades and improvements would have the greatestimpact on energy efficiency. Once the audit was complete, Honeywelland WCU officials jointly planned the project, choosing from a broadmenu of energy conservation measures.

"Centralized energy controls will be a major step up for us," saidGreg Cuprak, interim WCU executive director of facilities management."From one computer work station we'll be able to monitor and controltemperatures in dozens of buildings. We'll know which facilities --such as dorms or food services -- are exceeding expected demand. Andwe'll use that information to take action, whether it's talking topeople about their thermostat settings, or finding and making neededrepairs a lot more quickly than we can now."

Besides lighting replacements and centralized controls, theuniversity chose to replace antiquated HVAC equipment in numerousbuildings; cool and dehumidify the indoor swimming pool area, reducingcorrosion as well as enhancing comfort; replace old bathroom fixtureswith modern, water-saving models; and add solar film to windows infour facilities to reduce harmful ultraviolet rays, decrease solarheat gain and improve security by making it more difficult to see intothe buildings. In addition, Honeywell will install numerous meters toverify energy use and provide maintenance on select equipment.

The project will have a significant environmental impact as well,decreasing carbon dioxide emissions by an estimated 26 million poundsper year. According to figures from the U.S. Environmental ProtectionAgency, this is equivalent to removing almost 2,600 cars from the roador planting 3,500 acres of trees.

Design engineering began in May and will be completed by the endof October. Honeywell Building Solutions SES -- formerly Sempra EnergyServices -- is managing the project. This is the first major contractfollowing the acquisition from Sempra Generation earlier this year,and it's Honeywell's first work with the university.

"Colleges and universities across the country are caught in avicious operating cost squeeze, caused in large part by soaring energyprices," said Joe Puishys, president of Honeywell Building Solutions."Honeywell's energy performance contracts help them cut energy usesharply, improve the comfort and efficiency of their buildings andclear up deferred maintenance lists -- all without having to tapcurrent budgets, or raise tuition and fees."

Honeywell International is a $30 billion diversified technologyand manufacturing leader, serving customers worldwide with aerospaceproducts and services; control technologies for buildings, homes andindustry; automotive products; turbochargers; and specialty materials.Based in Morris Township, N.J., Honeywell's shares are traded on theNew York, London, Chicago and Pacific Stock Exchanges. It is one ofthe 30 stocks that make up the Dow Jones Industrial Average and isalso a component of the Standard & Poor's 500 Index. For additionalinformation, please visit www.honeywell.com. Honeywell BuildingSolutions is part of the Honeywell Automation and Control Solutionsbusiness group, a global leader in providing product and servicesolutions that improve efficiency and profitability, supportregulatory compliance, and maintain safe, comfortable environments inhomes, buildings and industry. For more information about BuildingSolutions, access www.honeywell.com/buildingsolutions.

This release contains "forward-looking statements" within themeaning of Section 21E of the Securities Exchange Act of 1934. Allstatements, other than statements of fact, that address activities,events or developments that we or our management intend, expect,project, believe or anticipate will or may occur in the future areforward-looking statements. Forward-looking statements are based onmanagement's assumptions and assessments in light of past experienceand trends, current conditions, expected future developments and otherrelevant factors. They are not guarantees of future performance, andactual results, developments and business decisions may differ fromthose envisaged by our forward-looking statements. Our forward-lookingstatements are also subject to risks and uncertainties, which canaffect our performance in both the near- and long-term. We identifythe principal risks and uncertainties that affect our performance inour Form 10-K and other filings with the Securities and ExchangeCommission.

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