Honeywell Secures Major Engine Contract From Israel Ministry of Defense

-- Honeywell and International Turbine Engine Company sign $735 million deal to supply F124 engine for IMOD's new 30-strong M-346 fleet

-- F124/F125 engine family now selected by five international defence departments

ROLLE, Switzerland, Sept. 5, 2012 /PRNewswire/ -- Honeywell (NYSE:HON), as part of the International Turbine Engine Company LLC, has signed a contract to supply its F124-GA-200 turbofan engines for the Israel Ministry of Defense's (IMOD) new 30-strong Alenia Aermacchi M-346 Master advanced jet trainer fleet. The contract is worth approximately $735 million and includes engine supply and aftermarket support.

(Photo:  http://photos.prnewswire.com/prnh/20120905/LA68044)

(Logo:  http://photos.prnewswire.com/prnh/20080425/LAF040LOGO)

The purchase of the F124-powered M-346 by the IMOD comes at a time when numerous defence departments, including that of the United States, are evaluating new training platforms to simulate the latest fighter aircraft such as the F-22, F-35, Eurofighter, Gripen and Rafale.

Proven In-Theater Performance

• With more than 700,000 flight hours across the entire F124/F125 engine family to date, the F124-GA-200 engines will deliver proven and reliable propulsion performance to the IMOD's M-346 fleet.
• The F124/F125 family is now selected by five international defence departments, with operational status on Taiwan's Indigenous Defense Fighter and the Czech Air Force's L159 light combat aircraft. The F124 will also power M-346 fleets recently purchased by the Italian Air Force and Republic of Singapore Air Force when they enter service in 2013.

Propulsion That Meets "Real-World" Pilot Training Needs

The F124 engine delivers the IMOD a number of key benefits including the following:

• Maximum performance for training flexibility. The F124 produces over 6,000 pounds of thrust for high acceleration in high-speed training environments and to simulate the widest possible range of modern fighter aircraft.
• Ease of maintenance and low cost. The F124 continuously monitors its own health status, providing engineers with diagnostic information to assist in maintenance planning and cost management. Because of its modular design, replacement of many key components can be completed easily on the tarmac to reduce grounding and maintenance manpower requirements.
• Safety. The F124 is designed to be highly resistant to midair engine cutouts such as surges or stalls, and further improves safety through a number of automated control systems that reduce pilot workload and help keep the pilot focused on flying the aircraft.

A Complete Package to Support Israel's Next Generation of Pilots

• As part of the contract, Honeywell will also provide spare parts and a comprehensive maintenance and support program to the IMOD, to maximize asset availability and reduce unplanned grounding time.
• The deal was signed between Honeywell on behalf of the International Turbine Engine Company LLC, a joint venture between Honeywell, AIDC and NDIDF; the IMOD; and TOR, an Israeli joint venture between Elbit Systems and Israeli Aerospace Industries.

Supporting Quotes

• Massimo Lucchesini, Chief Operating Officer, Operations, Alenia Aermacchi
  "The F124 is a core element of the M-346 platform, giving pilots unrestricted surge-free use of the engines they need to train in the widest possible range of flight conditions. It offers best-in-class thrust-to-weight ratio, providing afterburner-like agility coupled with exceptionally low fuel consumption. This enables the M-346 to deliver combat aircraft levels of performance, while providing the operator with unrivalled low life-cycle cost and high reliability and safety."
• Juan Picon, Vice-President D&S International, Honeywell Aerospace and ITEC Chairman of the Board
  "Our customers tell us that when it comes to training, safety and flexibility are key priorities. This is where our F124 engine sets itself apart, helping the M-346 establish itself as one of the most dynamic training aircraft on the market today."

Supporting Resources

• About the F124-GA-200 engine
• About the M-346 Master
• Read more about Honeywell Aerospace
• Follow @Honeywell_Aero on Twitter
• Subscribe to Honeywell's Corporate RSS feed

Based in Phoenix, Arizona, 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.

Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.

Honeywell and the Honeywell logo are the exclusive properties of Honeywell, are registered with the U.S. Patent and Trademark Office, and may be registered or pending registration in other countries. All other Honeywell product names, technology names, trademarks, service marks, and logos may be registered or pending registration in the U.S. or in other countries. All other trademarks or registered trademarks are the property of their respective owners. Copyright 2012 Honeywell.

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements.