Honeywell Control Products and Cannon Technologies Announce Alliance to Provide Integrated Energy Management Systems

Alliance Provides Electric Utilities with Solutions to Manage Peak Demand While Addressing Comfort and Convenience Needs of Consumers

MINNEAPOLIS, Minnesota, February 26, 2002 - The Control Products business of Honeywell [NYSE: HON] today announced a joint marketing and distribution alliance with Cannon Technologies, a leader in electric utility automation and peak load management. The alliance combines Honeywell's expertise in home and building control with Cannon's proven system of software, hardware and communications to deliver complete solutions for energy and comfort control to electric utilities for peak load reduction.

"The Honeywell and Cannon alliance will deliver significant value to both utility companies and consumers," said Jay Schrankler, vice president and general manager of Honeywell's Environmental Controls Business. "Utilities are seeking solutions that simultaneously offer benefits to consumers while allowing energy providers to manage energy demand at peak times. The alliance is designed to offer a complete portfolio of price-responsive solutions and value added services to utilities and their end customers."

In periods of high power demand, price responsive load systems allow utilities to send price signals and/or curtailment directives to customer homes and business. Honeywell and Cannon are offering a suite of solutions that include everything from wireless controllable thermostats to software that communicates power prices to businesses over the web. Industry experts note that demand response systems could have saved billions in power costs during past periods of high demand while at the same time eliminating the environmental impact of short-term generation. "Honeywell's experience and solutions in environmental controls are the perfect complement to our utility systems," said Ed Cannon, President of Cannon Technologies, which is based in Minneapolis, MN. "Demand for energy continues to rise, the construction of new power lines is difficult and expensive and no one wants to see us build generators that only need to run a few hours per year. Forward looking utilities recognize the value of load control systems as sound business."

Consumer Benefits

Consumer opportunities to participate in price responsive load programs in the past were limited to "all or nothing" options, giving them little or no ability to vary their participation depending on the situation. With the Honeywell and Cannon Alliance offering, homes and businesses will have a variety of choices of how they can participate in price responsive programs while maintaining control over their own comfort. At the same time, consumers can get remote access to their home or business to adjust the temperature and make other changes through the web or phone.

Utility Benefits

Energy utilities will be able to increase customer loyalty and revenue while lowering their operating costs by addressing the needs of every level of customer with the Honeywell and Cannon Alliance solution. It will provide products and services for industrial, commercial, onsite generation and residential consumers. The energy user gets a complete portfolio of products from a single, experienced source. Honeywell and Cannon look forward to offering additional alliance products later in the year which open up the door for utilities to sell additional services into their customer base. Under the alliance, Cannon will market Honeywell and Cannon Technologies co-branded products including the ExpressStat® wireless controllable thermostat and Cannon's family of other wireless control products. The system is driven by Cannon Technologies' Yukon™ software platform for advanced energy services.

For more information, send e-mail to info@honeywellcannon.com, go to www.honeywellcannon.com or call 1-888-827-6666.

Cannon Technologies, Inc. is a privately held corporation, headquartered in Minneapolis, MN. Cannon has over 300 electric utility users of its products for load management, distribution automation and remote metering.

Honeywell Home & Building Control is a US$5 billion business that provides products and services to create efficient, safe, comfortable environments. The business offers controls for heating, ventilation, humidification and air-conditioning equipment, security and fire alarm systems, home automation systems, energy-efficient lighting controls and building management systems and services.

Honeywell is a US$24-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; specialty chemicals; fibers; plastics; and electronic and advanced materials. Honeywell employs approximately 115,000 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 as further described in our filings under the Securities Exchange Act.

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