Honeywell Chosen by South Dakota County to Help Cut Energy Costs and Improve Facilities

Performance Contract Will Save Money While Increasing Facility Comfort, Safety and Energy Efficiency

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MINNEAPOLIS, May 22, 2006 – Honeywell (NYSE: HON) today announced a 10-year, $3.6 million energy-savings and modernization project with Pennington County in western South Dakota. The project includes infrastructure upgrades, energy-conservation measures and maintenance services. It will help the county offset rising energy costs and reduced budgets, while improving comfort, security and productivity at its facilities.

Pennington County will fund the project out of energy and operational savings that will result from Honeywell-led modernization efforts in all 14 of the county’s primary buildings. These savings — expected to total more than $700,000 annually — are guaranteed by Honeywell under a performance contract with the county, ensuring the work will not impact capital budgets or require additional taxpayer dollars. The project, the latest in Honeywell’s 20-year relationship with the county, which includes other retrofits, building controls work and services, is currently underway and is expected to be completed by early 2007.

“With Honeywell’s help, we can make the necessary upgrades and improvements to keep our buildings functioning safely and efficiently without expenditures that would over extend our buildings,” said Mike Peterson, director of buildings and grounds for Pennington County. “This type of project is ideal for municipalities that want to maintain top-performing facilities.”

Pennington County spans 2,700 square miles and serves nearly 90,000 residents. The energy upgrades will affect buildings throughout the county, including the Public Health Building, Juvenile Service Center, Public Safety Building, County Jail and County Courthouse. Under the contract, Honeywell will install energy-efficient lighting that will decrease energy consumption for this type of equipment by 45 percent while providing better illumination. Project work also includes upgrading or replacing leaky fixtures and valves, and retrofitting chillers and boilers. To reduce heating and cooling losses, Honeywell also will repair cracks in building exteriors, and weather strip windows and doors.

In addition to energy retrofits, Honeywell will tie security and building automation systems together at eight county facilities through its Enterprise Buildings Integratorä (EBI), a management platform that integrates core building functions like HVAC, energy, life safety and security. Using EBI, operators can be more productive by viewing and controlling these systems from a single workstation — either onsite or remotely.

Specifically, the security upgrade includes tying the card access controls and door security equipment at the facilities into EBI. Honeywell also will integrate all camera and surveillance functions onto the existing closed-circuit television (CCTV) system —Honeywell Digital Video Manager (DVM), an EBI component — to give the county the ability to view, record, play back and store video clips in real time from one location.

[an error occurred while processing this directive] Moving to a common operating platform will improve staff monitoring capabilities across county buildings, such as the county jail, which is comprised of two sections that currently run on separate security systems.

“This setup will take some of the burden off the staff while still maintaining a high standard of efficiency and security,” Peterson said. “Operators have a difficult time managing multiple systems, but EBI and DVM let us see everything as it happens so we can respond faster to issues in any of our facilities.”

Finally, the performance contract involves extensive maintenance on new and existing equipment. And it includes software support for EBI through Honeywell Service Online, a new suite of service tools, to ensure Pennington receives all software patches and upgrades when they become available, keeping systems secure and up-to-date.

“Doing more with less is a common issue for counties like Pennington, as they seek to maintain a high standard of comfort, efficiency and safety while working with limited resources,” said Joe Puishys, president of Honeywell Building Solutions. “Performance contracts help municipalities address this issue by providing the necessary financing for large-scale projects without the added investment burden.”

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 Building Solutions is part of the Honeywell Automation and Control Solutions business 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 formation about Building Solutions, access www.honeywell.com/buildingsolutions.

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