Business Editors

MORRIS TOWNSHIP, N. J.--(BUSINESS WIRE)--March 13, 2000

Transaction Marks Final Divestiture Required By Regulatory

Authorities In Connection With Honeywell/AlliedSignal Merger

Honeywell (NYSE: HON) today announced that it has signed an asset purchase agreement to sell Honeywell Inc.'s Traffic Alert and Collision Avoidance System (TCAS) product line to L-3 Communications (NYSE: LLL).

The agreement is subject to approval by regulatory authorities and customary closing conditions.

Honeywell will retain the former AlliedSignal TCAS business, which is a leading participant in the category with approximately 7,500 installed units in air transport, business and military aircraft. TCAS is an airborne collision avoidance technology that has been instrumental in reducing mid-air collisions and so-called near-miss incidents among aircraft. TCAS helps prevent accidents by displaying to the flight crew the position of surrounding aircraft and, when necessary, providing both visual and audible warnings and maneuvering instructions to help pilots avoid danger.

Honeywell was required to sell the business pursuant to a consent decree entered into with the U.S. Department of Justice (DOJ) and undertakings provided to the European Commission (EC) in connection with obtaining regulatory clearance for the Honeywell/AlliedSignal merger. The transaction marks the final sale of a Honeywell business required by U.S. and European regulatory authorities in connection with their approval of the Honeywell/AlliedSignal merger. In total, the businesses divested by Honeywell accounted for approximately 1 percent of the combined companies' overall revenues.

Honeywell's aerospace business has sales of $10 billion and is headquartered in Phoenix, Ariz. It is a leading global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.

Honeywell is a $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 developer of software, solutions and Internet e-hubs, including MyAircraft.com and MyPlant.com. 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.