Krakatau Steel Adopts Honeywell’s Energy Management Service to Create an Efficient Energy Consumption System

JAKARTA, Indonesia, August 23, 2011 (NYSE:HON) today announced that PT. Krakatau Daya Listrik (KDL), a subsidiary of PT. Krakatau Steel Group (PTKS Group), has selected Honeywell Process Solutions (HPS) to implement energy management and monitoring solutions which will help it get long-term cost savings through greater energy efficiency. KDL will implement the selected HPS solutions at PTKS Group’s facilities.

KDL is the primary supplier of electrical power for the government-owned PTKS Group, which is the largest steel maker in Indonesia with a combined maximum steel capacity of 2.45 million tons per year and is Southeast Asia’s largest integrated steel producer.

HPS' WPM, powered by Matrikon, will be used to monitor as well as optimize production from the new field while maintaining the safety and integrity of its operations.

PTKS consumes a significant amount of energy (including electrical power, natural gas and industrial gases) due to its large production capacity. Implementing HPS' Energy Management Serviceallows KDL to effectively monitor, manage and control its energy consumption without affecting the levels of productivity at PTKS' facilities. This meticulous monitoring helps KDL achieve the best possible energy use, so lowering its overall operational expenses.

"Providing energy for such a large-scale production is not an easy task, as we often run into high costs. By implementing HPS' proven solutions, we will be able to control and monitor energy usage, which ultimately helps us reduce those costs significantly in the long run," said Wisnu Kuncoro, President Director, KDL. "We chose Honeywell Process Solutions because of their previous experience in handling energy management projects and their in-depth knowledge of the steel manufacturing industry."

"Often, energy expenses are considered a fixed cost due to their substantial share of operating expenditures," said Tony Cosgrove, vice president sales, Asia Pacific, Honeywell Process Solutions. "With our Energy Management Service, KDL will now be able to gain a competitive edge as they are able to fully control their energy supply chain and achieve energy savings. We look forward to strengthening our relationship with the Krakatau Steel Group and work on even greater projects in the future."

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 . Honeywell Process Solutions is part of Honeywell’s Automation and Control Solutions group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Process Solutions, access www.honeywell.com/ps.

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Contacts:

Candice Yeo

+65 6580 3132

candice.yeo@honeywell.com

Jacinta Paul

+65 6825 8009

Jacinta.paul@webershandwick.com