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IBM Receives $550 Million Technology Contract from AlliedSignal

IBM to Provide End-to-End Solution

Somers, NY - 28 Oct 1999: -- IBM today announced that it has received a multi-year contract from AlliedSignal designed to enhance AlliedSignal's overall IT service quality, create a strong infrastructure and significantly reduce IT costs.

IBM Global Services will manage and maintain several of AlliedSignal's IT functions, including mainframe, midrange and help desk operations. IBM will deliver hardware, software and services to provide an end-to-end strategic technology solution.

"IBM Global Services has substantial expertise in large-scale systems integration and systems management,"said Larry Kittelberger, Senior Vice President & CIO at AlliedSignal. "By partnering with IBM, we can better focus on positioning ourselves in the marketplace as a global competitive force for the years ahead."

"IBM's leading technology and specialized services will lay the foundation for AlliedSignal's future IT initiatives," said Philip Thompson, vice president - manufacturing and aerospace, IBM Global Services.
Earlier this year, AlliedSignal announced that it would merge with Honeywell Inc., the world's leading provider of control technologies for buildings, homes, industry, space and aviation.

AlliedSignal Inc. is an advanced technology and manufacturing company serving customers worldwide with aerospace products and services, automotive products, chemicals, fibers, plastics and advanced materials. 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. The company employs 70,400 people in some 40 countries. Additional information on the company is available on the World Wide Web at www.alliedsignal.com.

IBM Global Services is the world's largest information technology services provider, with 1998 revenues of approximately $29 billion. Services is the fastest growing part of IBM, with more than 136,000 professionals operating in 160 countries. IBM Global Services integrates all of IBM's capabilities -- services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. Visit http://www.ibm.com/services.

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Contact(s) information

Dave Caplan
IBM
914-766-4529
caplan@us.ibm.com

Karen Suchenski
AlliedSignal Communications
973-455-4903

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