Honeywell Wins $6.5 Million Lifecycle Management Contract with Lyondell Chemical Company; Contract Marks Honeywell's First Lifecycle Management Contract in Europe

Business Wire, Jan 18, 2005

PHOENIX -- Honeywell (NYSE: HON) today announced it has received an eight-year, $6.5 million Lifecycle Management (LCM) contract from Lyondell Chemie Nederland BV, the wholly-owned Dutch subsidiary of Lyondell Chemical Co. (NYSE: LYO). This is Honeywell's first LCM contract in Europe.

Lifecycle Management is a multi-year support agreement that offers flexibility in how process manufacturers manage their plant assets. LCM allows customers to choose when to modernize, what to invest in, how to fund the transition, and how long they want to protect their investment.

"One of our primary challenges as a leader in the chemicals industry is to continuously improve our operations and set standards for best practices that we and others can sustain over time," said Jos Benders, Director Manufacturing Europe, Lyondell. "Honeywell technology and services can provide us with efficient, effective solutions that will help us meet our challenges and sharpen our global competitiveness."

Under the terms of the agreement, Honeywell will provide LCM technology support and migrate the company's existing Honeywell TDC3000 system to the newer Experion PKS(TM) Process Knowledge System (PKS). The plant modernization project is designed to improve production and optimize operational efficiency. Honeywell will provide support services throughout the project to help the plant maintain a safe and consistent operating environment.

Honeywell Experion PKS is a single process automation system for process, business and asset management. It can improve business performance by collecting and integrating process and business data across the entire enterprise and making process knowledge available where and when it is needed. With easy access to all system device and process data, operators are better equipped to make the right business decisions quickly. Experion PKS functions with previous Honeywell systems as well as non-Honeywell systems, allowing process manufacturers to protect their original investments while evolving to the latest technologies.

"Honeywell understands that to remain competitive in the chemicals industry, it is essential to increase productivity over the long term and to grow in a steady, yet disciplined manner," said Jack Bolick, president, Honeywell Process Solutions. "The technology behind Experion PKS, coupled with Honeywell's lifecycle management services, provide process manufacturers such as Lyondell with the peace of mind they need to achieve their operational goals."

Lyondell Chemical Company, headquartered in Houston, Texas, is North America's third-largest independent, publicly traded chemical company. Lyondell is a major global manufacturer of basic chemicals and derivatives including ethylene, propylene, titanium dioxide, styrene, polyethylene, propylene oxide and acetyls. It also is a significant producer of gasoline blending components. The company has a 58.75 percent interest in LYONDELL-CITGO Refining LP, a refiner of heavy, high-sulfur crude oil. Lyondell is a global company operating on five continents and employs approximately 10,000 people worldwide. Equistar Chemicals is a wholly owned subsidiary of Lyondell.

Honeywell International is a $25 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 Process 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 Process Solutions, access www.acs.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.

Experion(TM) is a trademark of Honeywell International Inc.