Honeywell attack on jury verdict awarding $38 million to American Flywheel Systems disputed by former U.S. Attorney General

Business Wire, Dec 2, 1996

Minneapolis-based Honeywell describes itself as a ``global controls company'' with $6.7 billion in annual sales. Honeywell's markets include homes and buildings controls, industrial controls, as well as aviation and space markets. Honeywell is a major supplier of control systems for the oil industry (refineries) and the Big Three automakers (auto microchips).

Honeywell made news in the last year because of other technology-related jury verdicts against it of $1.2 billion for infringing aviation navigation patents owned by Litton, and for $702 million in triple antitrust damages related to findings that it monopolized the aviation ring laser gyro market.

Honeywell is now engaged in court-ordered mediation with Litton. Honeywell's advertising in recent years has included the motto: ``We control your world.''

American Flywheel Systems is a small, privately held, Seattle- based startup with 90 shareholders and debenture holders who have invested approximately $8 million in AFS' flywheel-battery technology.

The company holds three flywheel-battery patents, has received approximately $1.5 million in government grants from the U.S. Advanced Research Projects Agency (ARPA) of the U.S. Department of Defense, the Sacramento Municipal Utility District (SMUD), the California Environmental Protection Agency (CALEPA) and the California Energy Commission (CEC).

AFS has engaged Oak Ridge National Laboratories (ORNL) and the University of Virginia Magnetic Bearings Center to assist AFS' own engineering team in the completion of the flywheel-battery prototype and the development of systems for automotive, utility, power-backup and spacecraft applications. -0-

Note: Pleadings and verdict can be obtained from Maricopa

County, Arizona Superior Court -- CV 94-14428.

CONTACT: American Flywheel Systems Inc.

Patty O'Leary, 206/454-1818

206/455-9623 (fax)