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Company News: Honeywell Announces Agreement to Acquire Hand Held Products Inc. – Imaging and Mobile Innovator




Acquisition Provides Entry into Large and Growing Automatic Identification and Data Collection Marketplace, Expands Pervasive Wireless Technology Expertise

Minneapolis, MN, October 15, 2007 - Honeywell (NYSE: HON) today announced it has signed a definitive agreement to acquire Hand Held Products Inc., a privately held Automatic Identification and Data Collection (AIDC) company based in Skaneateles Falls, N.Y., for approximately $390 million. Hand Held Products manufactures a range of data collection and communication products designed for mobile, on-site, and transaction processing in retail, healthcare, utilities, transportation, logistics and industry. The agreement is subject to customary closing conditions, including regulatory review.

Hand Held will become a part of Honeywell’s Security Group within the Automation and Control Solutions (ACS) business. Hand Held had sales of approximately $285 million in 2006.

Roger Fradin, President and CEO of Honeywell ACS said, “Hand Held’s growth potential and strong positions in key vertical markets complement ACS’ existing wireless solutions. Hand Held's ‘customer first’ mentality fits well with our culture. Both cultures value innovation that drives our customers’ success.”

Hand Held’s core products are bar code scanners and rugged mobile, wireless computers that are used for asset-tracking, logistics execution and supply chain management across diverse end markets. The company is perhaps best known in its space for its line of mobile computing and imaging technology used by the U.S. Postal Service, Dillards and Veterans Administration hospitals.

Hand Held has demonstrated leadership in image-based technology, which is replacing laser-based legacy products,” said Ben Cornett, President of Honeywell Security. “There’s tremendous opportunity for us with Hand Held as global demand for information increases along the supply chain in healthcare, industry and logistics; the outlook for the overall industry shows double-digit growth.”

“Aligning with Honeywell – one of the world’s leading technology companies - gives us an unprecedented ability to develop best-in-class solutions and deliver them to our customers,” said Kevin Jost, President and CEO for Hand Held Products. “Over the past three decades, we’ve built a successful business around innovation focused on best serving customer needs – more recently we’ve developed a clear and compelling view of the future for our customers and employees, which we believe can now be fully realized through this exciting combination.”

Hand Held Products’ portfolio includes well-known brands, such as its Dolphin product series, which are lightweight and ergonomically designed mobile computers that access, capture, and transmit real-time data wirelessly, keeping enterprises connected to mission-critical data regardless of location. Dolphin mobile solutions are found across a range of industries including transportation, retail, healthcare, manufacturing, field services and warehousing. Additionally, the company’s full product line – including an extensive portfolio of handheld scanners, feature its proprietary Adaptus Imaging Technology – the industry’s leading brand for image-based data capture. Adaptus utilizes digital camera technology and sophisticated image processing software to deliver high-performance barcode scanning and digital image capture capabilities. With millions of units already installed, this has proven to be important technology for retail, healthcare, transportation and manufacturing. Hand Held (www.handheld.com) also offers services and aftermarket technical support to customers in approximately 100 countries.

Cornett added: “This acquisition creates an exciting adjacency for Honeywell Security that will enable us to deliver even better technology and solutions to customers. We’re enthusiastic about bringing both Hand Held and Honeywell customers a broader selection of products and services.”

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