BURNABY, British Columbia--(BUSINESS WIRE)--June 23, 2004--Honeywell (NYSE:HON) Building Solutions and the City of Burnaby today launched an energy services partnership designed to improve the city's energy efficiency and reduce environmental emissions. The C$6.4 million, 12.5-year project is expected to save the city in excess of C$500,000 annually in utility and operational costs once installed.

Burnaby is the first municipality in the province of British Columbia to embark upon a comprehensive energy reduction program of this magnitude. The construction phase is scheduled to begin in July, during which Honeywell will upgrade lighting, heating, cooling, ventilation and control systems in city buildings. Overall, the city will reduce green house gas emissions by 1,693 tonnes annually and will benefit from incentive grants from Natural Resources Canada (NRCan) and BC Hydro's PowerSmart program.

"We are proud to proactively look for ways to reduce our city's energy use and to be utilizing this unique self-funding approach for our facility upgrades," said Rick Earle, Director of Finance at the City of Burnaby. "The program will improve the indoor comfort for our staff and residents who use the city's facilities. In addition, there will be a significant environmental benefit thanks to reductions in greenhouse gas emissions."

"Honeywell is pleased to add the City of Burnaby to the hundreds of governments and businesses we partner with to deliver world-class energy management capabilities through Energy Performance Contracting," said Joe Puishys, President, Honeywell Building Solutions. "We look forward to this long-term opportunity to help the city reduce costs, better serve the community and improve the overall environment for city residents and staff."

Honeywell's Energy Performance Contract allows organizations to improve their facilities' energy efficiency and lower operational costs. Savings are used to fund the cost of the program, with the cost of the energy and operational savings quantified by Honeywell on an annual basis over the term of the partnership. New technologies, energy efficiency equipment and automated facility controls can be used to replace older, inefficient systems thereby reducing electricity, natural gas and water consumption.

Honeywell International is a $23 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; specialty chemicals; fibers; and electronic and advanced 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 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 Building Solutions, access www.honeywell.com/buildingsolutions.

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.