Transformers Containing Honeywell Amorphous Metals Receive Japan's Energy Conservation Center Chairman's Award; Amorphous Metal Transformers Have Triple Crown Status in Japan

Business Wire, May 18, 2000

Business Editors

MORRISTOWN, N.J.--(BUSINESS WIRE)--May 18, 2000

The "Super Amorphous" transformer, manufactured by Hitachi Ltd. Industrial Components and Equipment Group, Tokyo, Japan, was recently awarded the Chairman's Prize by Mr. Sho Nasu, Counselor of Tokyo Electric Power Company (TEPCO), who serves as Chairman of Japan's Energy Conservation Center. The "Super Amorphous" transformers contain Honeywell's (NYSE:HON) METGLAS(R) amorphous metal.

In addition to the Chairman's Prize, amorphous metal transformers (AMTs) received citations in the 1999 Japanese Energy Saving Law and the 2000 Energy Reform Tax System giving AMTs a triple crown status among energy-saving equipment in Japan.

In an effort to reduce energy loss and greenhouse gas emissions, the Japanese government and related organizations have implemented incentive programs to encourage the use of energy efficient equipment. Amorphous metal transformers received the recommendation of Energy Saving Equipment under the Energy Saving Law issued April, 1999. In April, 2000 the Ministry of International Trade and Industry (MITI) added high efficiency transformers to the list of equipment qualified for a 7% tax credit or 30% special depreciation under the "Energy Reform Tax System."

"I am excited that amorphous metal technology has been given the chance to contribute to energy saving and reduction of greenhouse gases in Japan," said Bruce Fisher, Vice President and General Manager. "This new product represents the evolution of technology from serving Japan's utilities market to now include the larger power units needed by commercial and industrial customers."

"Super Amorphous transformers can achieve a considerable reduction in load and no-load losses resulting in an overall loss reduction of about 50%," said Mr. Shuichi Nagai, Section Manager, Marketing and Product Planning Department, Industrial Components and Equipment, Hitachi, Ltd. "Our company will develop and sell commercial and industrial transformers with high efficiencies and will help to actively promote energy saving in distribution transformers. We will supply about 1,000 units in the year 2000."

Nippon Amorphous Metals Company (http://www.amorphous.co.jp), a Japanese Agent of METGLAS amorphous alloys and products, reported that the current no-load loss in Japan is estimated to 27-billion kWh per year. This is equal to the amount of electricity generated by eleven average-sized generation plants in Japan which equates to the waste of 41.5-million barrels (6.6-million kl) per year of crude petroleum. AMTs can save up to 90% of these losses.

Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 1998 (ended March 31, 1999) consolidated sales of 7,977-billion yen (US$65.9-billion, based on an exchange rate 121 yen to US-dollar). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's Website at http://www.hitachi.co.jp

Information on the Energy Conservation Center in Japan can be found at http://www.eccj.or.jp.

Honeywell Amorphous Metals is a global producer of rapidly solidified metals. With more than 700 patents, it is the world's leader in amorphous metals technology. In addition to their use in electrical distribution transformers, METGLAS(R) amorphous metals are used throughout the electronics industry. It is part of Honeywell Electronic Materials, a world-leading provider of materials and solutions used in wafer fabrication; specialty electronic materials such as amorphous alloy products and Oak-Mitsui copper foils; advanced packaging substrates for silicon chips; printed circuit boards; and electronic manufacturing services. For more information on Electronic Materials, visit http://www.electronicmaterials.com/.

Honeywell is a US$24-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; power generation systems; specialty chemicals; fibers; plastics; and electronic and advanced materials. The company is a leading provider of software and solutions, and Internet e-hubs including MyPlant.com, MyFacilities.com and MyAircraft.com (joint venture with United Technologies and i2 Technologies). Honeywell employs approximately 120,000 people in 95 countries and is traded on the New York Stock Exchange under the symbol HON, as well as on the 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. Additional information on the company is available on the Internet at www.honeywell.com.

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.