Honeywell Announces Settlement of Securities Litigation

Business Wire, June 4, 2004

Business Editors

MORRIS TOWNSHIP, N.J.--(BUSINESS WIRE)--June 4, 2004

Honeywell (NYSE: HON) today announced that it had reached an agreement to resolve shareholder litigation pending against the company and three former officers relating to the 1999 AlliedSignal/Honeywell merger and financial projections and disclosures during the first half of the year 2000. The settlement is in the best interest of Honeywell's shareholders, as it will avoid the substantial burden, expense and uncertainties that would be involved in protracted litigation.

The terms of the settlement, which must be approved by the court, includes a payment into an escrow fund of $100 million, $85 million from Honeywell's insurers and $15 million from Honeywell. The payment by Honeywell is fully reserved.

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

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.