Honeywell Reaches $189 Million Settlement with Massachusetts Turnpike Authority on Company's Dispute over Project

PHOENIX--(BUSINESS WIRE)--Dec. 24, 2004--Honeywell (NYSE:HON) announced today it has reached a settlement with the Massachusetts Turnpike Authority (MTA), the agency overseeing Boston's $14.6 billion Central Artery Tunnel Project, to resolve outstanding disputes. According to the terms of the $189 million settlement, Honeywell was awarded $96.2 million for additional work requested by the Authority and outside the scope of the original agreement.

Honeywell's involvement with the project began in 2000 and during that time the company managed more than 1,200 contract changes.


Honeywell installed more than 3,600 devices to safely operate roadways, and received five gold safety awards and $1.3 million in safety bonus payments related to the company's work.

"Honeywell is delighted by this agreement. It resolves our substantial outstanding claims against the MTA, and recognizes that the conditions of this project were challenging and the work direction frequently changing," said Victor Miller, General Counsel for Honeywell Technology Solutions, Inc. (HTSI). "Honeywell performed all work required in the contract and did so in an environment widely acknowledged by government oversight officials as difficult at best."

Honeywell's HTSI business is recognized as one of the world's most sophisticated systems integrator.

The agreement recognizes that the company was forced to rework and redesign software provided by another subcontractor that was late, incomplete and containing numerous errors. It also recognizes that Honeywell was not granted access to the necessary roadways and that it was forced to respond to multiple requests from multiple project managers.

"This is a victory for Honeywell and vindicates our position that we were repeatedly asked to do work outside the scope of the original contract," Miller concluded.

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

Based in Phoenix, Honeywell's aerospace business 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.

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.


Contacts

Honeywell
Bill Reavis, 602-365-2055

Source : Honeywell