Honeywell Forms a Worldwide Strategic Partnership Agreement with ELPAS Local Positioning Systems

January 29, 2001, Ra’annana, Israel

The Home & Building Control business of Honeywell [NYSE:HON] and ELPAS Local Positioning Systems, announced today that they have entered into a strategic partnership agreement, under which ELPAS’ EIRIS™ Local Positioning System will be integrated into Honeywell’s Enterprise Building Integrator™ (EBI) solution, to enable real-time location and identification of critical assets throughout an enterprise. Honeywell EBI delivers a single solution for monitoring, controlling and integrating operations in a single building, or in facilities across entire organizations.

Honeywell EBI is a powerful suite of applications that starts by providing integrated, cost-effective control of all your customers’ core building systems, like HVAC, security, and life safety systems. Then it goes beyond - providing unprecedented access to and integration with their key business functions such as industrial manufacturing and process automation, financial and personnel records, environmental controls and supply chain databases. EBI users gain a powerful window into their entire operation - enabling them to boost productivity, maximize assets and drive down costs.

EIRIS™ Local Positioning System provides a set of programming tools that enables rapid development of location awareness functions. Using EIRIS™ platform, corporations all over the world capture real-time valuable information such as who, what, where and when (WWWW™) to improve their bottom line performance. The innovative integrated solution will supply immediate answers to the questions of who possesses the asset, its location, whether or not it is effectively deployed and utilized, the cost of ownership, and the number of required units.

“Adding asset management to our line of EBI products required a local positioning system,” said Mr. David Willett, Director of Global Marketing & Solution Development at Honeywell Home & Building Control. “ELPAS provided an open architecture with TCP/IP, LonWorks™ and NT server that fit smoothly to the open architecture of Honeywell EBI. It enables us to offer asset management solutions with our existing infrastructure to help our customers improve their productivity and Return-on-Assets.”

”The integrated approach introduced by Honeywell with EBI using EIRIS™ system, is the first opportunity we had to add benefits to all the business facets including security, time and attendance, maintenance, operations safety, and asset management,” stated Mr. Israel Radomsky, CEO of ELPAS. “We are honored by Honeywell’s decision. Integrating these two innovative solutions together introduces a new elevated level of benefits to customers”.

ELPAS Ltd. ( www.elpas.com ) - Local Positioning Systems (LPS), established in 1995, is a worldwide leading provider of Asset Management solutions based on its patented IRFID™ technology. Industries targeted include healthcare, intelligent buildings and industrial environments, where indoor location identification and monitoring of people and equipment are mission critical for operation, security and safety. ELPAS develops, manufactures and markets management and control solutions for the emerging multi-billion dollar Asset Management market. Additional information on the company is available at www.elpas.com

Honeywell Home & Building Control is a US$5.5 billion business that provides products and services to create efficient, safe, comfortable environments. The business offers controls for heating, ventilation, humidification and air-conditioning equipment, security and fire alarm systems, home automation systems, energy-efficient lighting controls and building management systems and services.

Honeywell is a US$24-billion 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. The company is a leading provider of software and solutions, and Internet e-hubs including MyPlant.com, MyFacilities.com and MyAircraft (joint venture with United Technologies and i2 Technologies). Honeywell employs approximately 120,000 people in 95 countries and is 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 on the Internet 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.