Apple, Inc. v. Motorola, Inc. et al

Filing 169

Declaration of James McGill Aitken filed by Plaintiff Apple, Inc. in Support of Reply re: 154 Motion to Stay (Attachments: # 1 Ex. 1, EU Merger Regulation, # 2 Ex. 2, Motorola Proxy Statement, # 3 Ex. 3, Best Practices Guidelines, # 4 Ex. 4, Oracle 8-K, # 5 Ex. 5, DOJ press release, # 6 Ex. 6, EU Sun Oracle decision, # 7 Ex. 7, TomTom Fed. Register, # 8 Ex. 8, TomTom EU decision, # 9 Ex. 9, Nokia Fed. Register, # 10 Ex. 10, Navteq EU decision, # 11 Ex. 11, DOJ GE Honeywell Press Release, # 12 Ex. 12, EU Decision re GE Honeywell) (Haslam, Robert)

EXHIBIT 11

FOR IMMEDIATE RELEASE
WEDNESDAY, MAY 2, 2001
WWW.USDOJ.GOV

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JUSTICE DEPARTMENT REQUIRES DIVESTITURES IN MERGER BETWEEN
GENERAL ELECTRIC AND HONEYWELL
Parties Required to Divest Helicopter Engine Business and to Authorize New Service
Provider for Engines and Auxiliary Power Units
WASHINGTON, D.C. -- The Department of Justice today announced that it has reached
an agreement in principle with General Electric Company (GE) and Honeywell International Inc.
resolving the Department’s antitrust concerns with the companies’ proposed $42 billion merger.
According to the Department, the merger as originally proposed would have substantially
lessened competition in the production of U.S. military helicopter engines and in the provision of
heavy maintenance, repair and overhaul (MRO) services for certain Honeywell aircraft engines
and auxiliary power units (APUs). The Department is requiring the companies to divest
Honeywell’s helicopter engine business and to authorize a new third-party MRO service provider
for certain models of Honeywell aircraft engines and APUs. Honeywell’s helicopter engine
business accounted for revenues approximating $200 million in 2000.
“Without this divestiture, the U.S. military would likely have faced higher prices, lower
quality and reduced innovation in the design, development, and production of the next generation
of advanced U.S. military helicopter engines,” said Constance K. Robinson, Director of
Operations and Merger Enforcement for the Antitrust Division. “Moreover, a range of
commercial business aircraft users would likely have suffered increased prices and reduced

-2quality in the repair and overhaul of Honeywell aircraft engines and APUs. The divestiture of
Honeywell’s helicopter engine business and the creation of a new authorized MRO service
provider will ensure that competition will continue to flourish in these markets.”
Final approval of the transaction by the Department is conditioned upon the negotiation
of an acceptable consent decree with the merging companies and entry of the decree by the United
States District Court for the District of Columbia.
GE and Honeywell are the two premier manufacturers of U.S. military helicopter engines,
collectively accounting for a substantial majority of all engines powering U.S. military helicopters
flying today. GE and Honeywell have also received virtually all of the applicable research and
development funding provided by the U.S. Department of Defense (DOD) through its Joint
Turbine Advanced Gas Generator (JTAGG) program. The JTAGG program, which began in
1988, funds technology developments intended to advance efficiencies in helicopter engine fuel
consumption and power to weight ratios, among other goals.
DOD plans to start its $5 billion, 20-year Common Engine Program to develop the next
generation helicopter engine no later than 2004. The Department of Justice worked closely with
DOD throughout this investigation.
GE and Honeywell are two of the three firms authorized to service TFE731 turbofan
engines and related auxiliary power units manufactured by Honeywell. Honeywell’s TFE731
turbofan engine is used on a range of small to mid-sized business jets. APUs are small engines
used to power an aircraft’s electrical systems while the aircraft is on the ground.
GE, based in Fairfield, Connecticut, is a diversified manufacturing and services company in
such areas as aircraft engines, household appliances, lighting, power generation, industrial

-3controls, medical imaging equipment, and engineering plastics. GE reported revenues of
approximately $130 billion in 2000.
Honeywell, headquartered in Morristown, New Jersey, is a diversified technology and
manufacturing company producing avionic products and services, home, building and industrial
controls, automotive products, power generation systems, specialty chemicals, fibers, plastics and
electronic and advanced materials. The company reported total sales of approximately $25 billion
in 2000.
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