Honeywell to Help Denver Housing Authority Reduce Energy Consumption, Costs and Emissions

Honeywell (NYSE:HON) today announced it has been awarded an $11.6-million, 12-year contract to implement a comprehensive energy-efficiency program for the Denver Housing Authority (DHA). The program, which features a variety of traditional infrastructure upgrades and includes plans to add renewable energy technology, will help the housing authority improve its facilities and reduce its impact on the environment while saving approximately $1.8 million in utility costs per year. "Working with our local and state partners, including Denver’s Greenprint Denver and the Governor’s Energy Office, we quickly saw the enormous impact a program like this could have. It will allow us to address a variety of maintenance needs, reduce rising operating costs and decrease our environmental footprint. More importantly, the program empowers our residents to be a part of the solution to the overall energy problem,” said Ismael Guerrero, Executive Director, DHA. "DHA’s investment in these massive energy upgrades demonstrates our commitment to conservation. In the process, we are educating 7,700 residents to be green-minded consumers.” DHA, the largest housing provider in Colorado, selected Honeywell based on its proposed scope of work and renewable energy expertise. The energy savings that result from the facility improvements, which are guaranteed by Honeywell, are expected to pay for the work. As a result, the program should not add to the housing authority’s budget or require additional taxpayer dollars. The first phase of the program will focus on traditional infrastructure upgrades to more than 940 DHA buildings, including hi-rise apartments, single-family homes and offices. Honeywell will make improvements to heating, ventilation and air-conditioning (HVAC) systems, install new boilers and furnaces, seal buildings to reduce the loss of hot and cool air, retrofit existing fluorescent lights with energy-efficient fixtures, upgrade plumbing systems with aerators for improved water conservation, and replace resident refrigerators with high-efficiency Energy Star models. In addition, Honeywell plans to involve DHA residents in the program with employment opportunities during construction and educational seminars on energy conservation. "We worked closely with Honeywell to identify the conservation measures that would provide the most value, both financially and environmentally,” said Dan Warner, Administrator of Maintenance and Quality Control, DHA. "We were able to incorporate a number of potential projects into this contract, which will allow us to focus future resources toward other important areas.” As a result of the improvements in the first phase, DHA expects to reduce its annual energy use by 25 percent, cutting carbon dioxide emissions by more than 5.6 million pounds per year. According to figures from the U.S. Environmental Protection Agency, this is equivalent to removing 550 cars from the road or planting 2,100 acres of trees. The environmental improvements made by the DHA support the city’s goal of reducing greenhouse gas emissions 10 percent by 2012 through the Greenprint Denver initiative. "Sustainability is not only about creating a strong economy that also protects the environment. True sustainability should ensure that economic opportunity flows out into all neighborhoods,” said Denver Mayor John Hickenlooper. "We are grateful to the Denver Housing Authority Board of Commissioners and staff, HUD and other partners for this ambitious program — an important step in our journey to becoming a balanced energy capitol of the West.” Honeywell and the DHA also are planning a second phase of the program, which will include the installation of a geothermal HVAC system that takes advantage of the natural heating and cooling of the earth’s surface. This renewable energy technology, which would serve the Hirschfield Tower hi-rise apartment building, will cool the facility in the summer by dispersing the building heat into the ground, and heat the facility in the winter by using the naturally stored energy in the earth’s crust. Installation of high-efficiency boilers, and roof and window replacements, will be part of the next phase as well. Honeywell expects to complete the upgrades in phase one by August 2008. "More than half of a city’s greenhouse gas emissions are generated by buildings,” said Joe Puishys, President of Honeywell Building Solutions. "Given the number of facilities involved in the project, this is an important undertaking not only for the DHA and its residents, but the entire Denver community. We look forward to implementing the conservation measures, delivering the results and making the program a success.” Honeywell International is a $34 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 and Chicago 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 Building Solutions is part of the Honeywell Automation and Control Solutions business 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 Building Solutions, access www.honeywell.com/buildingsolutions. This release contains "forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on management’s assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.