PARTIES AGREE TO NON-BINDING ARBITRATION IN RESOLVING TAWS DISPUTE

January 9, 2003 - In connection with disputes relating to Terrain Awareness Warning System patents owned respectively by Honeywell and Thales Group, Honeywell, Thales and Aviation Communication and Surveillance Systems ("ACSS") have agreed to a non-binding arbitration in an effort to resolve the respective disputes.  The parties have agreed that this arbitration proceeding will be treated by each of them as strictly confidential, with no public disclosure of any information relating to the arbitration. However, as the parties' plan to arbitrate has now become public, by whatever means, the parties jointly state that this procedure has not been adopted by any party out of concern about the validity of its position in the disputes, but solely in an effort to resolve the disputes expeditiously. The parties have agreed that this is the last and only statement that will be made publicly about this arbitration, before, during, or following its conclusion.

ACSS (Aviation Communication & Surveillance Systems), an L-3 Communications & Thales Company, is a leader in safety avionics systems. ACSS products include the TCAS 2000 and TCAS 1500 traffic alert and collision avoidance systems, a family of Mode S transponders, the T²CAS, a combined traffic and terrain collision avoidance system, and MASS, an enhanced TCAS system for military operations. More than 9,000 units of ACSS’s TCAS products are operating in commercial, corporate and military aircraft. To learn more about ACSS, please visit the company's web site at  www.L-3com.com/acss.

Thales Avionics, the European leader and world-renowned partner in avionics, utilities and inflight entertainment, is a wholly-owned subsidiary of THALES, a world leader in professional electronics for civil and defense markets. Please visit the company's website at www.thales-avionics.com

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Florence Fayolle  + 33 (0)1 46 29 88 31 - Fax: + 33 (0) 1 46 29 88 70