MORRIS TOWNSHIP, N.J., Sept. 29, 2010 – Honeywell (NYSE: HON) Electronic Materials announced today that it is expanding production capacity for 300mm sputtering targets and related metals as part of a long-term investment plan to support rebounding semiconductor industry growth.

Honeywell is increasing targets production capacity, as well as its internal capacity to produce the copper, cobalt, titanium, and tungsten raw materials used to make the targets. The expansion will allow Honeywell to meet growing demand for targets, which are used as the source of metal to make circuits in advanced semiconductors.

“Honeywell is committed to the semiconductor industry and is making the necessary investments to ensure we are ready to support its growth,” said Mike Norton, product line director of PVD sputtering targets for Honeywell Electronic Materials. “This commitment, combined with our integration of critical raw materials, uniquely positions us to serve our customers.”

The semiconductor industry has been rebounding from a significant downturn and is expected to deliver more than 25 percent growth by the end of 2010. A number of leading semiconductor fabrication facilities have already announced forecasts for continued expansion in output in 2011.

To address this accelerating demand, Honeywell’s investments in process optimization, resource expansion and new equipment will, by the end of this year, increase raw material capacity for copper by 110 percent, cobalt by 100 percent and titanium by 35 percent, and increase 300mm sputtering target capacity by more than 90 percent. The company is also planning to double production of tungsten next year to meet growing application demand in advanced 300mm devices.

Honeywell is a leader in the production of sputtering targets. The metal, such as copper, cobalt, titanium or tungsten, is primarily used to form the wiring that conducts the electrical current through the circuits.

In addition to manufacturing targets, Honeywell is vertically integrated in the production of source materials and offers a supply of materials dedicated to the semiconductor industry. The resulting supply chain offers customers better quality control and delivery assurance at times of source material shortages and/or industry ramps.

The industry is increasingly moving to larger 300mm wafers for production because of manufacturing and cost benefits and Honeywell has added capacity over recent years to produce the targets that support 300mm wafer production. The company produces targets at its Spokane, Wash., and Jincheon, Korea, facilities and metals at its Spokane; Golden, Co.; and Fombell, Pa. facilities.

Honeywell Electronic Materials, part of Honeywell Specialty Materials, supplies microelectronic polymers, electronic chemicals, and other advanced materials along with an extensive set of product offerings under its metals business segment, including physical vapor deposition (PVD) targets and coil sets, precious metal thermocouples, and materials used for thermal management and electrical interconnect.

For more information, visit www.honeywell.com/em.

Honeywell Specialty Materials is a global leader in providing customers with high-performance specialty materials, including fluorine products; specialty films and additives; advanced fibers and composites; intermediates; specialty chemicals; electronic materials and chemicals; and technologies and materials for petroleum refining.

Honeywell International (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; 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. For more news and information on Honeywell, please visit www.honeywellnow.com.

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.

Media Contact:
Peter Dalpe
973-455-4908
peter.dalpe@honeywell.com