Honeywell Helps U.S. Postal Service Deliver $4.1 Million in Annual Ene

Honeywell Helps U.S. Postal Service Deliver $4.1 Million in Annual Energy Savings

    Business Editors/Energy Editors

    MINNEAPOLIS--(BUSINESS WIRE)--Jan. 6, 2005--

Solutions Will Reduce Energy Consumption at More Than 70 Southern California Post Offices
    Honeywell (NYSE:HON) today announced that the U.S. Postal Service in Southern California has awarded the company $20.6 million in contracts for building and energy-retrofit improvements, as well as the development of a co-generation system. The projects began in late December and are expected to be complete in approximately 12 months.
    "Honeywell services enable us to work more efficiently while saving millions of dollars in energy costs," said Ray Levinson, manager of environmental compliance for the U.S. Postal Service Pacific Area. "This is important not only from an operating cost perspective, but also because it will reduce demand on the energy grid in California. Our shared energy savings contract is an effective way to control escalating utility costs and upgrade the facilities."
    The new contracts, combined with $18 million of similar work awarded in 2003, are expected to deliver $4.1 million in energy savings per year. They also will allow the Postal Service to reduce annual energy consumption by almost 30 million kilowatt hours (kWh) -- enough energy to power almost 4,000 homes for a year. The savings achieved through improved energy and operating efficiency will self-fund the projects, which means that facility upgrades and the co-generation system will be installed at virtually no cost to the Postal Service.
    Honeywell will replace chillers and air-handling units at three post offices in Southern California, upgrade lighting fixtures at 72 others, and build the co-generation system. This system will allow the San Diego distribution center, a key Postal Service facility, to produce electricity on-site, manage energy costs and decrease its reliance on the electricity grid. No other U.S. Postal Service distribution center has these capabilities.
    All of the projects to date are part of a larger energy savings performance contract with the U.S. Postal Service San Francisco Purchasing Center, which was signed in 2002. The estimated total value of the overarching contract is $100 million, and work under this contract is expected to continue through 2006.
    "Honeywell takes pride in offering services that reduce energy and operating costs for businesses, allowing them to focus their efforts on valued customers," said Joe Puishys, president of Honeywell Building Solutions. "We look forward to working with the U.S. Postal Service and helping them provide an efficient working environment that is conducive to best-in-class service."
    Once the retrofit projects from Honeywell were locally evaluated and approved, the U.S. Postal Service Utilities Category Management Center in Windsor, Conn. issued delivery orders. Technical review and support is provided by the Lawrence Berkeley National Laboratory -- managed by the University of California -- through the U.S. Department of Energy's Federal Energy Management Program. In addition, portions of the projects were financially and technically supported by U.S. Postal Service Maintenance Planning and Logistics Policies in Merrifield, Va.

    For 228 years, the United States Postal Service has been the gateway to the household, binding friends, families and neighbors together. It is an independent federal agency that handles 42 percent of the world's mail volume, with annual revenues of $65 billion. The Postal Service is not funded with taxpayer dollars, but derives its revenues solely from the sale of postage and other products and services it provides. Through its unrivaled service network, the Postal Service delivers money, messages and merchandise daily to more than 141 million addresses, offering some of the most affordable postage rates in the world.
    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. Honeywell Building Solutions is part of Honeywell's Automation and Control Solutions 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 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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CONTACT: Honeywell, Minneapolis Aaron Parker, 952-656-1721 aaron.parker@honeywell.com

KEYWORD: CALIFORNIA MINNESOTA INDUSTRY KEYWORD: GOVERNMENT ENERGY UTILITIES SOURCE: Honeywell

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