Honeywell Acquires Dimensions International


Expands Ability to Provide Comprehensive, Cost-Competitive Solutions for DoD Equipment Reset Challenges

PHOENIX, May 22 / -- Honeywell (NYSE:HON) announced today that it has signed a definitive agreement to acquire defense logistics leader Dimensions International for $230 million. The transaction is subject to regulatory requirements.

Dimensions International, headquartered in Alexandria, Va., provides logistics support for the U.S. Army, Navy, Air Force, Marine Corps, Coast Guard and other defense agencies located at military facilities in the Middle East and throughout the world. The acquisition will be integrated into Honeywell Technology Solutions Inc., a wholly-owned subsidiary of Honeywell, to bolster the company's field support, equipment pre-positioning, depot maintenance and vehicle repair, overhaul and up-armoring offering. Dimensions International employs 1,200 people and anticipates 2007 sales of approximately $173.5 million. The company's Sentel subsidiary is not part of the acquisition.

"Honeywell will be able to provide a comprehensive, cost-competitive total logistics solution to more effectively support the Department of Defense's efforts to address equipment reset challenges," said Ed Wheeler, President, Honeywell Defense and Space. "The acquisition of Dimensions International will enable us to reach new customers, continue the growth of our defense logistics business and support efforts to reconstitute billions of dollars' worth of worn military equipment."

To expedite the replacement of equipment damaged during wartime operations in the Middle East, the Army and Marine Corps have increased maintenance capacity in theater to provide high-level repair capabilities. Honeywell has been supporting these efforts in the Middle East for more than five years.

Last month, the Navy selected Honeywell to compete for anti-terrorism contracts worth up to $500 million. The Anti-Terrorism Force Protection (ATFP) program allows the company to compete for contracts to design, install and maintain anti-terrorism equipment at naval bases around the world. Honeywell was also recently selected by the U.S. Army to refurbish medium-sized tactical vehicles in Kuwait as part of the Theater Provided Equipment Refurbishment (TPER) program. In 2006, the company won a separate Army contract for Total InteGrated Engine Revitalization (TIGER), a program to extend the life of the AGT1500 turbine engine used to power the Abrams tank.

Honeywell International is a $33 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 http://www.honeywell.com/.

CONTACT:Media: Jim O'Leary, +1-602-365-5930, jim.o'leary@honeywell.com, or Nicholas Noviello, +1-973-455-2222, nicholas.noviello@honeywell.com

FCMN Contact: jim.o'leary@honeywell.com

Source: Honeywell

Web site: http://www.honeywell.com/

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