Company Sees Recovery and Growth Beginning in 2010

MORRIS TOWNSHIP, N.J., February 22, 2010 -- Honeywell (NYSE: HON) today announced that it expects approximately 6-8% compound annual sales growth over the next five years and is targeting segment margins in the range of 16-18% in five years. The company also expects continued strong cash flow generation over that time period.

“Honeywell is a very different and much better company today,” said Honeywell Chairman and Chief Executive Officer Dave Cote. “The processes and principles that we’ve adopted have enabled Honeywell to perform well in good times as well as tough economic times. We are now one company, guided by the same initiatives and behaviors. This common one Honeywell culture, together with the strength of our global portfolio, allowed us to effectively manage costs last year, rather than simply cut programs or people, which positions us well for growth in the next five years.”

“Our key process initiatives, Honeywell Operating System, Functional Transformation, and Velocity Product Development™, enabled the company to do more with less,” continued Cote. “We improved our quality and delivery commitments to customers, while making the investments that will enable us to keep winning where growth is around the world.”

At its February 22nd investor conference, Honeywell discussed important global growth factors, including favorable macro-trends, such as energy efficiency, safety, and security, and key technologies and products like refining processes for bio-renewables, Smart Grid thermostats, low-global-warming-potential refrigerants, air safety technologies, and turbochargers.

“We’re ready for economic recovery,” concluded Cote. “Honeywell is a stronger and leaner company today, and we’re expecting industry-leading performance over the next five years. We are building off a stronger base that will enable us to perform even better in the recovery.”
Highlights from the business segment discussions included:

Aerospace
- Won more than $92 billion in aircraft contracts including multiple product wins on new platforms since 2005
- $2 billion in Defense and Space services wins in 2009
- Included as the only U.S. company in Europe’s air traffic modernization program, or SESAR program
- Introduced new products/industry firsts in next generation safety avionics, including SmartPath™, SmartRunway™, SmartLanding™, SmartView™, and Helicopter EGPWS/TAWS
- 100% APU selection rate for Chinese Airlines since mid-2007

Automation and Control Solutions
- Introduced ~400 new products in 2009 and outperformed peer group
- Won significant new business including a worldwide contract with UPS for more than 100,000 Honeywell handheld devices
- Won more than $650 million in energy efficiency orders in 2009, further demonstrating its leading positions in residential, commercial, and industrial controls and demand response
- Continued attractive M&A investments with the acquisition of RMG, a manufacturer of natural gas control, measurement, and analysis equipment
- Continued strong and growing presence in emerging regions, specifically China, India, and the Middle East, introducing technologies developed in local markets for local markets

Transportation Systems
- Won nearly half of all new turbocharger platforms since 2007
- Awarded turbocharger contracts on 100 new engine launches, including BMW 4.4 L V8 (gasoline and hybrid), Chevy Cruze 1.4 L (gasoline), Ford F-350 V8, Volkswagen 1.6 L / 1.2 L (diesel), and Hino medium-duty commercial vehicles
- More than 100 new product launches expected to drive a 20% revenue increase in 2010
- Favorable macro-trends and energy efficiency legislation expected to drive demand for turbocharging technologies, with largest opportunity in the United States

Specialty Materials
- Outperformed peers with segment margins of 14.6% in 2009
- 80 new product launches expected in 2010, with ~300 new products in development pipeline
- Awarded $60 million in government stimulus funding
- Continued to build a strong global presence with expanded technology support in China and the Middle East, as well as a new technology center for refining, petrochemical, and other technologies in India
- Demonstrated leader in new process technologies for a range of bio-renewable fuels including Honeywell Green Diesel™ and Honeywell Green Jet Fuel™

A webcast of Honeywell’s 2010 Annual Investor Conference and presentation materials are available at www.honeywell.com/investor.

Honeywell (www.honeywell.com) is a Fortune 100 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, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.

This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements

Contacts:
Media
Robert C. Ferris
(973) 455-3388
rob.ferris@honeywell.com

Investor Relations
Elena Doom
(973) 455-2222
elena.doom@honeywell.com