New Technology To Offer Performance And Cost Benefits Partnership to Accelerate Development

Honeywell International has signed an agreement with
Cypress Semiconductor Corp. to jointly develop a new technology for
integrated circuits (ICs) used in satellites, strategic missiles and
other space vehicles.

The two companies will jointly develop new ICs that will compute
information faster, or at higher capacities, while withstanding the
severe radiation environment in space. An IC, also called a microchip,
is a single piece of silicon that can house millions of transistors.

“Our partnership with Cypress will enable us to produce
much-sought-after, radiation-hardened, 0.15 micron technology by 2005
— about twice as quickly as it would take one company to do it
alone,” said Eric Doremus, General Manager, Honeywell Solid State
Electronics Center. “This continues Honeywell’s tradition of leading
the industry in technology for space-computing applications.”

The new microchips will use Honeywell’s patented
radiation-hardened Silicon-On-Insulator (SOI) technology, which
employs an insulating layer to protect computer chips from radiation
damage in space.

Cypress will contribute technology that will reduce the size of
individual transistors on the microchips to 0.15 microns – about six
millionths of an inch.

This will enable placing nearly four times the quantity of
transistors on each chip compared to existing capability. With the new
process, 90 million to 100 million transistors can be installed on a
microchip the size of a fingernail, increasing data computing volume
and speed.

“Cypress is looking to develop SOI technology for use in
communications ICs,” said Christopher Seams, Cypress’s Executive Vice
President for Technology and Manufacturing. “Partnering with Honeywell
allows us to acquire this technology quickly and cost-effectively,
resulting in powerful, economical solutions for our customers.”

The new microchips will process information in satellites for a
wide variety of communications needs, including telephone, television,
weather imaging and military applications. They will also be used in
the systems that operate satellites.

Honeywell is a diversified technology and manufacturing leader,
serving customers worldwide with aerospace products and services;
control technologies for buildings, homes and industry; automotive
products; power-generation systems; specialty chemicals; fibers;
plastics; and electronic and advanced materials. Based in Morris
Township, N.J., Honeywell employs more than 100,000 people in 95
countries. The company’s shares are 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
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.