UTC Contract

Daniel Penn Associates Named Consultant
to United Technologies Corporation Supplier Diversity Program

Hartford, CT – January 29, 2001

United Technologies Corp. (NYSE: UTX) has retained Daniel Penn Associates (DPA), a management consulting firm based here, to review purchasing practices and recommend how to expand the corporation’s Supplier Diversity Program.

UTC plans to increase partnerships with minority-owned suppliers and place $250 million worth of business with them this year – a 25 percent increase over 2000.

"Minority businesses play an important role in supplying United Technologies with critical goods and services, and provide a key resource in the quest for innovative products and ideas," said Michael O. Brown, UTC vice president, worldwide sourcing. "Our customers – not just the government customer where there has been a requirement for a number of years, but the commercial customer as well – are also increasingly interested in the level of minority business participation in our goods and services," said Brown.

DPA will review how UTC currently conducts its business at all points of the supply chain, from corporate to divisional levels, as it relates to minority suppliers.

Through one-on-one interviews, DPA will ask questions such as: How are minority businesses currently identified? Is training provided for commodity managers and supplier diversity professionals? Are supplier diversity purchasing procedures standardized among all divisions? Are units meeting their performance goals? How are minority suppliers being integrated into division business planning?

"We are looking to DPA to help strengthen and expand our minority supplier program corporate-wide," said UTC’s Brown. The UTC divisions participating in the study are Pratt & Whitney, Carrier, Otis, Hamilton Sundstrand and Sikorksy.

DPA also will benchmark UTC’s Supplier Diversity Program with those of similar-sized companies. DPA will analyze the data and make recommendations in a report to corporate management.

DPA is a 23-year-old, national and international management-consulting firm serving a broad base of clients in manufacturing, financial services, public utilities and government.

United Technologies Corp., based in Hartford, is a global company providing high-technology products and services to the aerospace and building systems industries.

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