-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 TYwivrXSVq2fcTpsx7umBEYbJV7BK67hrcYA4Ogvlkfw1VQ5YUKn1E35E5DyLu5l
 KjZ6jJuzsSwbGQQigsFUdA==

<SEC-DOCUMENT>0000101829-01-500026.txt : 20010702
<SEC-HEADER>0000101829-01-500026.hdr.sgml : 20010702
ACCESSION NUMBER:		0000101829-01-500026
CONFORMED SUBMISSION TYPE:	11-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20001231
FILED AS OF DATE:		20010629

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UNITED TECHNOLOGIES CORP /DE/
		CENTRAL INDEX KEY:			0000101829
		STANDARD INDUSTRIAL CLASSIFICATION:	AIRCRAFT ENGINES & ENGINE PARTS [3724]
		IRS NUMBER:				060570975
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		11-K
		SEC ACT:		
		SEC FILE NUMBER:	001-00812
		FILM NUMBER:		1671786

	BUSINESS ADDRESS:	
		STREET 1:		UNITED TECHNOLOGIES BLDG
		STREET 2:		ONE FINANCIAL PLZ
		CITY:			HARTFORD
		STATE:			CT
		ZIP:			06101
		BUSINESS PHONE:		2037287000

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	UNITED TECHNOLOGIES MICROELECTRONICS CENTER
		DATE OF NAME CHANGE:	19850825

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	UNITED TECHNOLOGIES CORP
		DATE OF NAME CHANGE:	19841205
</SEC-HEADER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>planiistmt.htm
<DESCRIPTION>PLAN II 11-K
<TEXT>

<HTML>

<head>
<TITLE>planIIstmt</TITLE>
</head>

<body>

<p><font FACE="Arial" SIZE="2"><b><img SRC="image7.gif" WIDTH="543" HEIGHT="90"></b></p>
</font><b><font FACE="Courier New" SIZE="2">

<p></font></b>&nbsp;</p>

<p align="center"><b><font FACE="Arial" SIZE="2">FORM 11-K</font></b></p>

<p align="center"><b><font FACE="Arial" SIZE="2">ANNUAL REPORT PURSUANT TO SECTION 15(d)<br>
OF THE SECURITIES EXCHANGE ACT OF 1934<br>
For the Plan period ended December 31, 2000</font></b></p>
<b><font FACE="Arial" SIZE="2">

<p align="center">&nbsp;Commission File Number 1-812</p>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II</p>

<p align="center">&nbsp;</p>

<p align="center">UNITED TECHNOLOGIES CORPORATION<br>
One Financial Plaza<br>
Hartford, Connecticut 06101</p>
</font>

<hr>
<font SIZE="2">

<p align="center"></font><font FACE="Arial" SIZE="2">FINANCIAL STATEMENTS OF THE UNITED
TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II</font><font SIZE="2"></p>
</font><font FACE="Arial" SIZE="2">

<p align="center">REPORT OF INDEPENDENT ACCOUNTANTS</font></b><font FACE="Courier New"
SIZE="2"></p>

<p>&nbsp;</p>
</font>

<p><font FACE="Arial" SIZE="2">To the Participants and Administrator of<br>
United Technologies Corporation<br>
Employee Savings Plan II</font></p>
<font FACE="Arial" SIZE="2">

<p align="justify">In our opinion, the accompanying statements of net assets available for
benefits and the related statement of changes in net assets available for benefits present
fairly, in all material respects, the net assets available for benefits of the United
Technologies Corporation Employee Savings Plan II (the &quot;Plan&quot;) at December 31,
2000 and December 31, 1999, and the changes in net assets available for benefits for the
year ended December 31, 2000 in conformity with accounting principles generally accepted
in the United States. These financial statements are the responsibility of the Plan&#146;s
management; our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these statements in accordance with
auditing standards generally accepted in the United States, which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.</p>
</font><font FACE="Courier New" SIZE="2">

<p></font>&nbsp;</p>

<p><font FACE="Arial" SIZE="2">/s/ PricewaterhouseCoopers LLP<br>
PricewaterhouseCoopers LLP<br>
Hartford, Connecticut<br>
June 29, 2001&nbsp;</font></p>
<font FACE="Arial" SIZE="2">

<hr>
</font><b><font FACE="Courier New" SIZE="2">

<p align="center"></font><font FACE="Arial" SIZE="2">United Technologies Corporation
Employee Savings Plan II<br>
Statement of Net Assets Available for Benefits<br>
</b>(Thousands of Dollars)</p>

<p></font>&nbsp;</p>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="92%">
  <tr>
    <td WIDTH="57%" VALIGN="TOP"></td>
    <td WIDTH="4%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="center"><font FACE="Arial" SIZE="2"><b>December 31, </b></font></td>
    <td WIDTH="5%" VALIGN="TOP" align="center"></td>
    <td WIDTH="18%" VALIGN="TOP" align="center"><b><font FACE="Arial" SIZE="2">December 31,</font></b></td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"></td>
    <td WIDTH="4%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="center"><b><font FACE="Arial" SIZE="2">2000</font></b></td>
    <td WIDTH="5%" VALIGN="TOP" align="center"></td>
    <td WIDTH="18%" VALIGN="TOP" align="center"><b><font FACE="Arial" SIZE="2">1999</font></b></td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"></td>
    <td WIDTH="4%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP"></td>
    <td WIDTH="5%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><b>Assets:</b></font></td>
    <td WIDTH="4%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP"></td>
    <td WIDTH="5%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" HEIGHT="30"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Plan's
    interest in Master Trust (Notes 3 through 6)</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="30"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" HEIGHT="30" align="right"><font FACE="Arial" SIZE="2">83,672
    &nbsp;&nbsp; </font></td>
    <td WIDTH="5%" VALIGN="TOP" HEIGHT="30" align="right"><font FACE="Arial" SIZE="2"><p
    ALIGN="RIGHT">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" HEIGHT="30" align="right"><font FACE="Arial" SIZE="2">45,185
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Contributions
    receivable:</font></td>
    <td WIDTH="4%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="5%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp; Participants'</font></td>
    <td WIDTH="4%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">21&nbsp;&nbsp; </font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">-&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp; Employer's</font></td>
    <td WIDTH="4%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    23</u>&nbsp;&nbsp; </font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    -</u>&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"></td>
    <td WIDTH="4%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    44</u>&nbsp;&nbsp; </font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    -</u>&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Net Assets Available for Benefits</font></td>
    <td WIDTH="4%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">83,716&nbsp;&nbsp; </font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">45,185&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="55%" VALIGN="TOP"></td>
    <td WIDTH="4%" VALIGN="TOP" align="right"></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p align="right"></font>=====<font
    FACE="Arial" SIZE="2">&nbsp;&nbsp; </font></td>
    <td WIDTH="5%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p align="right"></font>=====<font
    FACE="Arial" SIZE="2">&nbsp;&nbsp; </font></td>
  </tr>
</TABLE>
<font FACE="Courier New" SIZE="2">

<p></font><font FACE="Arial" SIZE="2">The accompanying notes are an integral part of these
financial statements.</font><font FACE="Courier New" SIZE="2"></p>
</font>

<hr>
<b><font FACE="Courier New" SIZE="2">

<p align="center"></font><font FACE="Arial" SIZE="2">United Technologies Corporation
Employee Savings Plan II<br>
Statement of Changes in Net Assets Available for Benefits<br>
</b>(Thousands of Dollars)</p>
</font>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="90%">
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="center"><b><font FACE="Arial" SIZE="2">Year Ended</font></b></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="center"><b><font FACE="Arial" SIZE="2">December 31,</font></b></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="center"><b><font FACE="Arial" SIZE="2">2000</font></b></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><b>Additions to net assets
    attributed to:</b></font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Investment Income:</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Net depreciation in
    fair value of investments</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(5,346)&nbsp;&nbsp;
    </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Interest</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">2,672&nbsp;&nbsp;&nbsp;
    </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Dividends </font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">2,473&nbsp;&nbsp;&nbsp;
    </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Contributions:</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Participants'</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">5,014&nbsp;&nbsp;&nbsp;
    </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Employer's</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;
    &nbsp; 3,191</u>&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    additions </font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp; &nbsp;
    8,004</u>&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><b>Deductions from net assets
    attributed to:</b></font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Distributions to
    participants </font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(6,547)&nbsp;&nbsp;
    </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Administrative
    expenses</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(9)&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Interest Expense -
    ESOP</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;
    &nbsp;&nbsp;&nbsp;&nbsp; (17</u>)&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    deductions</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp; (6,573</u>)&nbsp;&nbsp;
    </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Net increase prior to transfers</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp; &nbsp;
    1,431</u>&nbsp; &nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><b>Plan transfers:</b></font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Assets transferred
    into Plan (Note 12)</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">37,106&nbsp;&nbsp;&nbsp;
    </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Assets transferred
    out of Plan</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;
    &nbsp;&nbsp; &nbsp;&nbsp; (6</u>) &nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; Net Plan
    transfers</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;
    37,100</u>&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td VALIGN="top" height="15"></td>
    <td VALIGN="top" height="15"></td>
    <td VALIGN="top" align="right" height="15"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Net increase</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">38,531&nbsp; &nbsp;
    </font></td>
  </tr>
  <tr>
    <td VALIGN="top" height="15"></td>
    <td VALIGN="top" height="15"></td>
    <td VALIGN="top" align="right" height="15"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Net Assets Available for
    Benefits, December 31, 1999</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;45,185</u>&nbsp;
    &nbsp; </font></td>
  </tr>
  <tr>
    <td VALIGN="top" height="15"></td>
    <td VALIGN="top" height="15"></td>
    <td VALIGN="top" align="right" height="15"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Net Assets Available for
    Benefits, December 31, 2000</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">83,716&nbsp; &nbsp;
    </font></td>
  </tr>
  <tr>
    <td VALIGN="top" height="15"></td>
    <td VALIGN="top" height="15"></td>
    <td VALIGN="top" height="15"><p align="right">======&nbsp;&nbsp;&nbsp; </td>
  </tr>
</TABLE>
<font FACE="Courier New" SIZE="2">

<p><font FACE="Arial" SIZE="2">The accompanying notes are an integral part of these
financial statements.</font></p>
<b>

<hr>

<p align="center"></font><font FACE="Arial" SIZE="2">UNITED TECHNOLOGIES CORPORATION<br>
EMPLOYEE SAVINGS PLAN II<br>
Notes to Financial Statements</p>
</font></b><font FACE="Courier New" SIZE="2">

<p></font><b><font SIZE="2">&nbsp;</p>

<p></font><font FACE="Arial" SIZE="2"><u>NOTE 1 - DESCRIPTION OF THE PLAN</u></p>

<p ALIGN="JUSTIFY">General.</b> The United Technologies Corporation Employee Savings Plan
II (formerly the UTC Savings Plan for Hourly Management-Represented Employees) (the
&quot;Plan&quot;) is a defined contribution savings plan administered by United
Technologies Corporation (&quot;UTC&quot;). It is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (&quot;ERISA&quot;). Both salaried
employees and non-union hourly employees of certain divisions of Carrier Corporation
(&quot;Carrier&quot;) and Sikorsky Aircraft Corporation (&quot;Sikorsky&quot;) are
eligible to participate in the Plan immediately (except for one Sikorsky location with a
three-month waiting period).&nbsp; Customarily, participants are eligible for employer
contributions at hire date. The following is a brief description of the Plan. For more
complete information, participants should refer to the Plan document which is available
from UTC.</p>
<b>

<p ALIGN="JUSTIFY">Contributions and Vesting.</b> The percentages of total compensation
participants may elect to contribute, through payroll deductions, varies depending on the
provisions of the Plan specific to a particular location.&nbsp; Participants direct the
investment of their contributions into various investment options offered by the Plan. The
Plan currently offers ten mutual funds, four commingled index funds, one stable value
fund, and a company stock fund as investment options for participants. Participant
contributions, plus actual earnings thereon, are fully vested at all times under the
Plan.&nbsp; Carrier and Sikorsky (the &quot;Employer&quot;) contribute specified amounts
to the Plan in accordance with the terms outlined in the respective employment
agreements.&nbsp; Generally, the Employer's contributions, plus actual earnings thereon,
become fully vested after two years of Plan participation.</p>

<p ALIGN="JUSTIFY">During 2000, UTC began to use the leveraged Employee Stock Ownership
Plan (&quot;ESOP&quot;) to fund the employer matching contributions to the Plan. The ESOP
is primarily invested in UTC Series A ESOP Convertible Preferred Stock (see Note 7).
Participants who have reached at least age 55 may direct up to 50 percent, in multiples of
25 percent, of their ESOP account balances and future employer contributions to be
invested in the other investment funds offered though the Plan. In such cases, UTC may
redeem the ESOP preferred Stock in the participant&#146;s accounts for cash and such
shares may be allocated in the future.</p>
<b>

<p ALIGN="JUSTIFY">Participant Accounts</b><strong>.</strong> Each participant&#146;s
account is credited with the participant's contributions and allocations of (a) UTC&#146;s
contributions based on a percentage of the participant&#146;s contribution and (b) Plan
earnings based on account balances. The benefit to which a participant is entitled is the
benefit that can be provided from the participant's vested account. Forfeited balances of
terminated participants' nonvested amounts are used to reduce future Employer
contributions. For the year ended December 31, 2000 approximately $33,000 of forfeitures
were used to fund UTC's contributions.</p>
<b>

<p ALIGN="JUSTIFY">Trustee and Recordkeeper.</b> All of the Plan's assets are held by
Bankers Trust Company (&quot;Bankers Trust&quot;), the Plan trustee. Bankers Trust is a
subsidiary of Deutsche Bank.&nbsp; Fidelity Institutional Retirement Services Company
(&quot;Fidelity&quot;) performs participant account recordkeeping responsibilities.<b></p>

<p ALIGN="JUSTIFY">Participant Loans.</b> Certain participants with at least two years of
Plan participation are allowed to borrow up to 50 percent of their account balances,
excluding employer contributions. Loan amounts can range from $1,000 to $50,000 and must
be repaid within 5 years. The loans are secured by the balance in the participant's
account and bear interest at Deutsche Bank's prime rate plus one percent. Principal and
interest are paid ratably through payroll deductions.</p>
<b>

<p ALIGN="JUSTIFY">Payment of Benefits.</b> Generally, benefits are paid in a lump sum to
a terminating participant. A participant terminating due to retirement may elect to
receive benefits in installments over two to twenty years. At the participant's election,
the portion of a lump sum distribution attributable to an investment in the UTC Common
Stock Fund and ESOP investment option may be paid in shares of UTC Common Stock instead of
cash. Distributions in UTC Common Stock for the year ended December 31, 2000 were
approximately $7,000.</p>
<b>

<p ALIGN="JUSTIFY">Other.</b> Participants who transfer to a new UTC location with a
different savings plan may have the option of transferring their account balances in
accordance with the provisions of the new savings plan.<b><u></p>

<p>NOTE 2 - SUMMARY OF ACCOUNTING PRINCIPLES</u></p>

<p ALIGN="JUSTIFY">Basis of Accounting</b>. The financial statements of the Plan are
prepared under the accrual method of accounting, except for benefits which are recorded
when paid.</p>
<b>

<p ALIGN="JUSTIFY">Master Trust.</b> The Plan's assets are kept in a Master Trust
maintained by the Plan's trustee. Under the Master Trust agreement, the assets of certain
employee savings plans of UTC and its subsidiaries are combined. Participating plans
purchase units of participation in the investment funds based on their contribution to
such funds and the unit value of the applicable investment fund at the end of the trading
day in which a transaction occurs. The unit value of each fund is determined at the close
of each day by dividing the sum of uninvested cash, accrued income and the current value
of investments by the total number of outstanding units in such funds. Income from the
funds' investments increases the participating plans' unit values. Distributions to
participants reduce the number of participation units held by the participating plans (See
Note 6).</p>
<b>

<p ALIGN="JUSTIFY">Investment Valuation and Income Recognition</b>. The Income Fund's
investments in insurance contracts (see Note 5) are stated at contract value, which
represents contributions plus earnings, less Plan withdrawals. The ESOP Preferred
Stock&#146;s fair value is the higher of the guaranteed value ($65) or four times the
daily ending price of UTC&#146;s Common Stock. All other funds are stated at fair value,
as determined by the Plan trustee, typically by reference to published market data.</p>

<p>Purchases and sales of securities are recorded on a trade-date basis. Dividends are
recorded on the ex-dividend date.</p>
<b>

<p ALIGN="JUSTIFY">Plan Expenses</b>. Plan administrative expenses, including Plan trustee
and recordkeeping fees, were paid directly by the employer in 2000. The employer also paid
certain investment management fees for the funds administered by Deutsche Asset
Management. All other administrative and investment expenses were paid out of Plan assets
during 2000.<b></p>

<p ALIGN="JUSTIFY">Use of Estimates.</b> The preparation of financial statements requires
UTC management to make estimates and assumptions that affect the reported amounts in the
financial statements. Actual results could differ from those estimates.</font><font
FACE="Courier New" SIZE="2"></p>

<p></font><font FACE="Arial" SIZE="2"><u><b>NOTE 3 - INVESTMENTS</b></u></p>

<p ALIGN="JUSTIFY">The following presents investments that represent 5 percent or more of
the Plan's net assets:</font><font FACE="Courier New" SIZE="2"></p>
</font>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="90%">
  <tr>
    <td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="42%" VALIGN="TOP" align="center" colspan="3"><font FACE="Arial" SIZE="2"><b>December
    31,</b></font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">(Thousands of Dollars, except
    unit amounts)</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="center"><b><font FACE="Arial" SIZE="2">2000</font></b></td>
    <td WIDTH="6%" VALIGN="TOP" align="center"></td>
    <td WIDTH="18%" VALIGN="TOP" align="center"><b><font FACE="Arial" SIZE="2">1999</font></b></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Equity Fund, 264,144 and 129,389
    units,<br>
    &nbsp; respectively</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2"><br>
    </font><font FACE="Arial" SIZE="2">7,866&nbsp;&nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"><font SIZE="2"><p ALIGN="RIGHT"><br>
    </font><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2"><br>
    </font><font FACE="Arial" SIZE="2">4,236&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">UTC Common Stock Fund, 125,710
    units in<br>
    &nbsp; 1999</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2"><p ALIGN="RIGHT"><br>
    </font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2"><br>
    </font><font FACE="Arial" SIZE="2">N/A&nbsp;&nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2"><br>
    </font><font FACE="Arial" SIZE="2">2,650&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Income Fund, 494,344 and 329,096<br>
    &nbsp; units, respectively</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><br>
    38,732&nbsp;&nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><br>
    23,830&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Fidelity Growth and Income Fund,
    188,753 and<br>
    &nbsp; 111,838 units, respectively</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2"><br>
    </font><font FACE="Arial" SIZE="2">7,946&nbsp;&nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2"><br>
    </font><font FACE="Arial" SIZE="2">5,274&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Fidelity Contrafund, 129,751 and
    42,627 units,<br>
    &nbsp; respectively</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><br>
    6,380&nbsp;&nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><br>
    2,558&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
</TABLE>
<font FACE="Arial" SIZE="2">

<p>During 2000, the Plan&#146;s investments (including gains and losses on investments
bought and sold, as well as held during the year) depreciated in value by $5,346,000 as
follows:</font></p>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="90%">
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Mutual Funds</font></td>
    <td WIDTH="6%" VALIGN="TOP"><p align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(5,638,000)&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    ESOP Fund</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;
    (292,000</u>)&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"><p align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(5,346,000)&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2">========&nbsp;&nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
  </tr>
</TABLE>
<u>

<p><font FACE="Arial" SIZE="2"><b>NOTE 4 &#150; NONPARTICIPANT-DIRECTED INVESTMENTS</b></font></u></p>

<p><font FACE="Arial" SIZE="2">Information about the net assets and the significant
components of the changes in net assets relating to the nonparticipant-directed
investments is as follows: </font></p>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="75%">
  <tr>
    <td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="42%" VALIGN="TOP" align="center" colspan="3"><font FACE="Arial" SIZE="2"><b>December
    31,</b></font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">(Thousands of Dollars)</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="center"><font FACE="Arial" SIZE="2"><strong>2000</strong></font></td>
    <td WIDTH="6%" VALIGN="TOP" align="center"></td>
    <td WIDTH="18%" VALIGN="TOP" align="center"><font FACE="Arial" SIZE="2"><strong>1999</strong></font></td>
    <font FACE="Arial" SIZE="2">
  </tr>
  <tr>
    </font><td WIDTH="53%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <font FACE="Arial" SIZE="2">
  </tr>
  <tr>
    </font><td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Net Assets:</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <font FACE="Arial" SIZE="2">
  </tr>
  <tr>
    </font><td WIDTH="53%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; ESOP Fund</font></td>
    <td WIDTH="6%" VALIGN="TOP"><p align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">1,539
    &nbsp;&nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">-
    &nbsp;&nbsp;&nbsp; </font><p>&nbsp;</td>
    <font FACE="Arial" SIZE="2">
  </tr>
  <b>
</TABLE>
</b></font>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="76%">
  <tr>
    <td WIDTH="65%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><strong><br>
    </strong>(Thousands of Dollars)<strong> &nbsp;&nbsp;</strong></font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"></td>
    <td WIDTH="34%" VALIGN="TOP" align="right"><p align="center"><strong><font FACE="Arial"
    SIZE="2">Year Ended<br>
    December 31,<br>
    2000</font></strong></td>
  </tr>
  <tr>
    <td WIDTH="65%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Changes in Net Assets:</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"></td>
    <td WIDTH="34%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="65%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Investment Income</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="34%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">318
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="65%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Contributions</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"></td>
    <td WIDTH="34%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">9
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="65%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Benefits paid to
    participants</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"></td>
    <td WIDTH="34%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(37)
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="65%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Interest expenses</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"></td>
    <td WIDTH="34%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(17)
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="65%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Transfers to
    participant-directed investments</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"></td>
    <td WIDTH="34%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(1)
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="65%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Transfers to
    non-affiliated plans</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"></td>
    <td WIDTH="34%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp; 1,267</u>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="65%" VALIGN="TOP"></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="34%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">1,539
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td VALIGN="top" height="15"></td>
    <td VALIGN="top" align="right" height="15"></td>
    <td VALIGN="top" align="right" height="15">=====
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </td>
    <b>
  </tr>
</TABLE>
<u>

<p><font FACE="Arial" SIZE="2">NOTE 5 - INVESTMENT CONTRACTS WITH INSURANCE COMPANIES</font></u></b></p>

<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">The Plan's Income Fund invests in insurance
contracts with insurance companies. Under these contracts, each insurance company
guarantees repayment in full of the principal amount plus interest credited at a fixed
rate for a specified period. Interest is credited to each contract based on an annual
interest rate set each year by the individual insurance companies. This rate, which
differs among contracts, takes into account any difference between prior year credited
interest and the actual amount of investment earnings allocable to the contract in
accordance with the established allocation procedures of the insurance company. The
interest rates earned for 2000 and 1999 were 8.3% and 8.1%, respectively.</font><u><b></p>

<p><font FACE="Arial" SIZE="2">NOTE 6 - INVESTMENT IN MASTER TRUST</font></b></u></p>

<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">UTC has entered into a Master Trust
agreement with Bankers Trust. Under this agreement, certain savings plans of UTC and its
subsidiaries combine their trust fund investments in the Master Trust.</font></p>

<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">Participating plans purchase units of
participation in the investment funds based on their contribution to such funds along with
income that the investment funds may earn, less distributions made to the plans'
participants.</font></p>

<p ALIGN="JUSTIFY"><font FACE="Arial" SIZE="2">At December 31, 2000, the Plan's interest
in the Master Trust comprised 4,480,562 units of the 519,377,890 total units of
participation, or 0.86%. At December 31, 1999, the Plan's interest in the Master Trust
comprised 1,799,331 units of the total 510,203,518 units of participation, or 0.35%.</font></p>

<hr>
<font FACE="Arial" SIZE="2">

<p ALIGN="JUSTIFY">The following is a summary of the financial information and data for
the Master Trust and the portion applicable to the Plan:</font><b><font SIZE="2"></p>

<p align="center"></font><font FACE="Arial" SIZE="2">United Technologies Corporation<br>
Master Trust Statement of Net Assets<br>
</b>(Thousands of Dollars)</p>
</font>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="90%">
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="23"></td>
    <td WIDTH="6%" VALIGN="TOP" height="23"></td>
    <td WIDTH="18%" VALIGN="TOP" height="23" align="center"><b><font FACE="Arial" SIZE="2">December
    31, </font></b></td>
    <td WIDTH="6%" VALIGN="TOP" height="23" align="center"></td>
    <td WIDTH="18%" VALIGN="TOP" height="23" align="center"><b><font FACE="Arial" SIZE="2">December
    31,</font></b></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="center"><b><font FACE="Arial" SIZE="2">2000</font></b></td>
    <td WIDTH="6%" VALIGN="TOP" height="24" align="center"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="center"><b><font FACE="Arial" SIZE="2">1999</font></b></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">Assets:</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24"></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="21"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;
    Short-term investments</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="21"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" height="21" align="right"><font FACE="Arial" SIZE="2">2,640
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="21"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" height="21" align="right"><font FACE="Arial" SIZE="2">23,147
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;
    Investments:</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Equity:</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Mutual funds</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">784,876
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">663,679
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Equity commingled index funds</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">1,460,037
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">1,466,274
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Common stock</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">759,152
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">784,371
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    ESOP stock fund</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">3,641,487
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">3,152,372
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Debt:</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="top"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Fixed income commingled index funds</font></td>
    <td WIDTH="6%" VALIGN="top"></td>
    <td WIDTH="18%" VALIGN="top" align="right"><font FACE="Arial" SIZE="2">24,916&nbsp; &nbsp;
    </font></td>
    <td WIDTH="6%" VALIGN="top"></td>
    <td WIDTH="18%" VALIGN="top" align="right"><font FACE="Arial" SIZE="2">28,140&nbsp; &nbsp;
    </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Insurance company investment contracts</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">4,364,663
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">3,883,142&nbsp;
    &nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Participant notes receivable</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    99,935</u>&nbsp; &nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    81,647</u>&nbsp; &nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2"><p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Subtotal</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">11,137,706
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">10,082,772
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="top" height="15"></td>
    <td WIDTH="6%" VALIGN="top" height="15"></td>
    <td WIDTH="18%" VALIGN="top" height="15" align="right"></td>
    <td WIDTH="6%" VALIGN="top" height="15"></td>
    <td WIDTH="18%" VALIGN="top" height="15" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font face="Arial">&nbsp;&nbsp;&nbsp; <font
    SIZE="2">ESOP receivables </font></font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">128,988
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">116,234
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;
    Interest and dividend receivables</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    14,678</u> &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    20,085</u>&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2"><p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Total assets</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2"><u>11,281,372</u>
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2"><u>10,219,091</u>
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="top" height="15"></td>
    <td WIDTH="6%" VALIGN="top" height="15"></td>
    <td WIDTH="18%" VALIGN="top" height="15" align="right"></td>
    <td WIDTH="6%" VALIGN="top" height="15"></td>
    <td WIDTH="18%" VALIGN="top" height="15" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2"><p ALIGN="JUSTIFY">Liabilities:</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24"></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Accrued
    liabilities </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">8,708
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">6,014
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Accrued
    ESOP interest</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">2,070
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">2,154
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; ESOP
    debt </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">301,100
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2">336,600
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Notes
    payable to UTC</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;
    153,333</u>&nbsp; &nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;
    131,233</u>&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="24"><font FACE="Arial" SIZE="2"><p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Total liabilities </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;
    465,211</u>&nbsp; &nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="24"></td>
    <td WIDTH="18%" VALIGN="TOP" height="24" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;
    476,001</u>&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="top" height="15"></td>
    <td WIDTH="6%" VALIGN="top" height="15"></td>
    <td WIDTH="18%" VALIGN="top" height="15" align="right"></td>
    <td WIDTH="6%" VALIGN="top" height="15"></td>
    <td WIDTH="18%" VALIGN="top" height="15" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="21"><font FACE="Arial" SIZE="2"><p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Net Assets</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="21"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" height="21" align="right"><font FACE="Arial" SIZE="2">10,816,161
    &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="21"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" height="21"><p align="right"><font FACE="Arial" SIZE="2">9,743,090&nbsp;
    &nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" height="15"></td>
    <td WIDTH="6%" height="15"></td>
    <td WIDTH="18%" height="15"><p align="right"><font SIZE="2">========&nbsp;&nbsp;&nbsp;
    &nbsp;</font></td>
    <td WIDTH="6%" height="15"></td>
    <td WIDTH="18%" height="15"><p align="right"><font SIZE="2">========&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%" VALIGN="TOP" height="43"><font FACE="Arial" SIZE="2">Net assets of the
    Master Trust allocable to the Plan</font></td>
    <td WIDTH="6%" VALIGN="TOP" height="43"><font SIZE="2"><p ALIGN="RIGHT"><br>
    </font><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" height="43" align="right"><font SIZE="2"><br>
    </font><font FACE="Arial" SIZE="2">83,672&nbsp;&nbsp;&nbsp; </font></td>
    <td WIDTH="6%" VALIGN="TOP" height="43" align="right"><font SIZE="2"><p ALIGN="RIGHT"><br>
    </font><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="18%" VALIGN="TOP" height="43" align="right"><font SIZE="2"><br>
    </font><font FACE="Arial" SIZE="2">45,185&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="53%"></td>
    <td WIDTH="6%"></td>
    <td WIDTH="18%" align="right"><font SIZE="2">========= &nbsp;&nbsp; </font></td>
    <td WIDTH="6%" align="right"></td>
    <td WIDTH="18%" align="right"><font SIZE="2">========= &nbsp; </font></td>
  </tr>
</TABLE>
<font SIZE="2">

<hr>

<p align="center"></font><font FACE="Arial" SIZE="2"><b>United Technologies Corporation<br>
Master Trust Statement of Changes in Net Assets<br>
</b>(Thousands of Dollars)</p>

<p>&nbsp;</p>
</font>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="90%">
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP"><p align="center"><b><font FACE="Arial" SIZE="2">Year Ended<br>
    December 31,<br>
    2000</font></b></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Additions:</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Interest and
    dividend income</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">484,236
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Net appreciation on
    fair value of investments</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">422,709
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Contributions from
    participating plans for purchase of units</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;
    &nbsp; 294,212</u>&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    additions</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>1,201,157</u>
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Deductions:</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Benefit payments on
    behalf of participating plans </font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(583,163)&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Master trust
    expenses </font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;
    &nbsp; (37,444</u>)&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    deductions</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;
    &nbsp; (620,607</u>)&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Net increase prior to transfers</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;
    &nbsp;&nbsp; 580,550</u>&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Plan transfers:</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Assets transferred
    in</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">495,024
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Assets transferred
    out </font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2,503</u>)&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; Net Plan
    transfers</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;
    492,521</u>&nbsp; &nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="JUSTIFY">Increase in
    net assets</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">1,073,071
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="JUSTIFY">Net assets:</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Beginning of year</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;
    9,743,090</u>&nbsp; &nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; End of year </font></td>
    <td WIDTH="6%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">10,816,161
    &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">=========&nbsp; &nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">Amounts pertaining to the Plan:</font></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Plan interest in net
    depreciation and investment income<br>
    &nbsp;&nbsp;&nbsp;&nbsp; of Master Trust</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2"><br>
    (201)&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">========= &nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Contributions
    received (cash basis)</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">8,161&nbsp; &nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">=========&nbsp; &nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Assets transferred
    into Plan (Note 12)</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">37,106&nbsp; &nbsp;
    </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">=========&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Pension benefits
    paid </font></td>
    <td WIDTH="6%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(6,547)&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">=========&nbsp; &nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Plan expenses </font></td>
    <td WIDTH="6%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(26)&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">=========&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"><font FACE="Arial" SIZE="2">&nbsp;&nbsp; Assets transferred
    out of Plan</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font FACE="Arial" SIZE="2"><p ALIGN="RIGHT">$</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Arial" SIZE="2">(6)&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td WIDTH="74%" VALIGN="TOP"></td>
    <td WIDTH="6%" VALIGN="TOP"></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">=========&nbsp;&nbsp; </font></td>
  </tr>
</TABLE>
<font FACE="Arial" SIZE="2"><u><b>

<p>NOTE 7 - EMPLOYEE STOCK OWNERSHIP PLAN</b></u></p>

<p ALIGN="JUSTIFY">The ESOP has purchased approximately 14.5 million shares of $1.00 par
value Series A ESOP Convertible Preferred Stock (&quot;ESOP Shares&quot;), with a $4.80
per share annual dividend from UTC. Each ESOP share is convertible into four shares of
UTC's Common Stock. The ESOP financed the ESOP Share purchases with interest bearing
promissory notes. See Notes 8 and 9.</p>

<p ALIGN="JUSTIFY">ESOP Shares are allocated to participant accounts as they earn UTC's
matching contributions. ESOP Shares are released for allocation to participants as
principal and interest payments are made on the debt. The ESOP uses the ESOP Shares' cash
dividends and additional contributions from UTC to repay the principal and interest. To
the extent that ESOP Shares released through debt service payments are not sufficient to
meet the matching contribution requirement, UTC must contribute additional ESOP Shares,
UTC Common Stock or cash. To the extent that ESOP Shares released through debt service
exceed the matching contribution requirement, the debt is restructured so that the value
of the released ESOP Shares does not exceed the Plan's matching contribution requirement.
For the period ended December 31, 2000, participants were credited with matching
contributions of $63.7 million representing approximately 263,606 shares. Additionally, in
lieu of receiving cash, participants are allocated ESOP Shares for dividends paid on their
shares. During 2000, participants earned dividends of approximately $31.8 million
representing approximately 134,074 shares.</p>

<p ALIGN="JUSTIFY">Shares allocated to a participant generally may not be distributed
until the participant's termination, disability, retirement or death. Upon distribution, a
participant may elect to receive either cash or four shares of UTC Common Stock for each
ESOP Share. Each ESOP share is valued at the higher of four times the market value of
UTC's Common Stock or $65. A participant cannot elect to receive the distribution in ESOP
Shares. The ESOP Fund's investment in ESOP Shares at period end for the entire Master
Trust is as follows:<b> </b></p>
</font>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" WIDTH="95%">
  <tr>
    <td WIDTH="26%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="33%" VALIGN="TOP" HEIGHT="18" colspan="3" align="center"><font FACE="Arial"
    SIZE="2"><b>December 31, 2000</b></font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="center"></td>
    <td WIDTH="33%" VALIGN="TOP" HEIGHT="18" colspan="3" align="center"><font FACE="Arial"
    SIZE="2"><b>December 31, 1999</b></font></td>
  </tr>
  <tr>
    <td WIDTH="26%" VALIGN="TOP" HEIGHT="18"><font face="Arial" size="1">(Thousands of
    Dollars, except share amounts)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="center"><font FACE="Arial" SIZE="2"><b>Allocated</b></font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="center"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="center"><font FACE="Arial" SIZE="2"><b>Total</b></font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="center"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="center"><font FACE="Arial" SIZE="2"><b>Allocated</b></font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="center"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="center"><font FACE="Arial" SIZE="2"><b>Total</b></font></td>
  </tr>
  <tr>
    <td WIDTH="26%" VALIGN="top" HEIGHT="10"></td>
    <td WIDTH="3%" VALIGN="top" HEIGHT="10"></td>
    <td WIDTH="15%" VALIGN="top" HEIGHT="10" align="right"></td>
    <td WIDTH="3%" VALIGN="top" HEIGHT="10" align="right"></td>
    <td WIDTH="15%" VALIGN="top" HEIGHT="10" align="right"></td>
    <td WIDTH="3%" VALIGN="top" HEIGHT="10" align="right"></td>
    <td WIDTH="15%" VALIGN="top" HEIGHT="10" align="right"></td>
    <td WIDTH="3%" VALIGN="top" HEIGHT="10" align="right"></td>
    <td WIDTH="15%" VALIGN="top" HEIGHT="10" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="26%" VALIGN="TOP" HEIGHT="18"><font FACE="Arial" SIZE="2">Number of Shares</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">6,531,081</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">11,578,656</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">6,732,230</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">12,124,064</font></td>
  </tr>
  <tr>
    <td WIDTH="26%" VALIGN="TOP" HEIGHT="18"><font FACE="Arial" SIZE="2">Guaranteed Value</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">424,520</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">752,613</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">437,595</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">788,064</font></td>
  </tr>
  <tr>
    <td WIDTH="26%" VALIGN="TOP" HEIGHT="18"><font FACE="Arial" SIZE="2">Market</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">2,054,025</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">3,641,487</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">1,750,380</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="18" align="right"><font FACE="Arial" SIZE="2">3,152,257</font></td>
  </tr>
</TABLE>
<font FACE="Arial" SIZE="2">

<p ALIGN="JUSTIFY">The market value of the ESOP Shares was $314.50 and $260.00 per share
at December 31, 2000 and 1999, respectively. Further, the Net Assets Available for
Benefits in the ESOP Fund for the entire Master Trust at December 31, 2000 and 1999
include unrealized appreciation of approximately $2.9 billion and $2.4 billion, of which
$1.3 billion and $1.1 billion is on unallocated shares.</p>

<p ALIGN="JUSTIFY">The ESOP Shares are redeemable, in whole or in part, at the option of
UTC at a redemption price of $65.00 per share plus accrued and unpaid dividends. However,
upon notice to the Trustee of UTC's intention to redeem, the trustee can convert each
preferred share into four shares of UTC Common Stock if more beneficial to participants.</p>
</font><font SIZE="2"><u><b>

<p><font face="Arial">NOTE 8 - ESOP DEBT</font></b></u></p>

<p ALIGN="JUSTIFY"><font face="Arial">In 1990, the Master Trust, with UTC as guarantor,
executed a Note and Guaranty Agreement (the &quot;Agreement&quot;) and issued $660,000,000
of Series A, B, C and D notes (described below) representing the ESOP's permanent
financing. The Series A ESOP Debt was repaid in full during 1999. The amounts outstanding
under the Agreement, with interest rates and maturity dates, are as follows at December
31, 2000:</font></font></p>

<table border="0" width="82%" cellspacing="0" cellpadding="2">
  <tr>
    <td width="29%" align="center"><font FACE="Arial" SIZE="2"><b><br>
    <u>Note Series</u></b></font></td>
    <td width="6%" align="center"></td>
    <td width="25%" align="center"><font FACE="Arial" SIZE="2"><b>Principal<br>
    <u>(000's)</u> </b></font></td>
    <td width="20%" align="center"><font FACE="Arial" SIZE="2"><b>Rate of<br>
    <u>Interest</u></b></font></td>
    <td width="20%" align="center"><font FACE="Arial" SIZE="2"><b>&nbsp;<br>
    <u>Due</u></b></font></td>
  </tr>
  <tr>
    <td height="15"></td>
    <td height="15"></td>
    <td height="15"></td>
    <td height="15"></td>
    <td height="15"></td>
  </tr>
  <tr>
    <td width="29%"><p align="center"><font FACE="Arial" SIZE="2">B</font></td>
    <td width="6%"><p align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td width="25%"><p align="right"><font FACE="Arial" SIZE="2">251,100
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
    <td width="20%"><p align="center"><font FACE="Arial" SIZE="2">7.68%</font></td>
    <td width="20%"><p align="center"><font FACE="Arial" SIZE="2">2000 - 2008</font></td>
  </tr>
  <tr>
    <td width="29%" align="center"><font FACE="Arial" SIZE="2">C</font></td>
    <td width="6%"></td>
    <td width="25%" align="right"><font FACE="Arial" SIZE="2">17,300
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
    <td width="20%" align="center"><font FACE="Arial" SIZE="2">7.68%</font></td>
    <td width="20%" align="center"><font FACE="Arial" SIZE="2">2008</font></td>
  </tr>
  <tr>
    <td width="29%" align="center"><font FACE="Arial" SIZE="2">D</font></td>
    <td width="6%"></td>
    <td width="25%" align="right"><font FACE="Arial" SIZE="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;
    32,700</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
    <td width="20%" align="center"><font FACE="Arial" SIZE="2">7.68%</font></td>
    <td width="20%" align="center"><font FACE="Arial" SIZE="2">2009</font></td>
  </tr>
  <tr>
    <td width="29%"></td>
    <td width="6%"><p align="right"><font FACE="Arial" SIZE="2">$</font></td>
    <td width="25%"><p align="right"><font FACE="Arial" SIZE="2">301,100
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
    <td width="20%"></td>
    <td width="20%"></td>
  </tr>
  <tr>
    <td width="29%"></td>
    <td width="6%"></td>
    <td height="10"><p align="right"><font SIZE="2">========
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
    <td width="20%"></td>
    <td width="20%"></td>
  </tr>
</TABLE>
<b>

<p ALIGN="JUSTIFY"></b><font FACE="Arial" SIZE="2">Required payments on these Notes, in
aggregate, for the next five plan years are $35.0 million in 2001, $34.5 million in 2002,
$34.0 million in 2003, $33.6 million in 2004, and $33.2 million in 2005.</font><u></p>
<font SIZE="2">

<p><b><font face="Arial">NOTE 9 - NOTES PAYABLE</font></b></u></p>

<p ALIGN="JUSTIFY"><font face="Arial">In conjunction with the ESOP financing discussed in
Note 7, the Master Trust issued a promissory note to UTC issued in 1990, bearing interest
at 10.5%, and due over the period 2000 to 2009. At December 31, 2000, $60.3 million was
outstanding. Required principal payments on the Note for the next five plan years are $5.0
million in 2001, $5.2 million in 2002, $5.5 million in 2003, $5.7 million in 2004, and
$5.9 million in 2005. The Trustee executed an additional $15 million, $19 million, $32
million, and $27 million of promissory notes to UTC on December 10, 1997, 1998, 1999, and
2000, respectively. The notes bear an interest rate of 6.35%, 5.50%, 6.95%, and 6.72%, and
mature on December 10, 2007, 2008, 2009, and 2010, respectively. These promissory notes
replace a portion of the 1990 ESOP Debt notes described in Note 8 above.</font><u><b></p>

<p><font face="Arial">NOTE 10 - RELATED-PARTY TRANSACTIONS</font></b></u></p>

<p ALIGN="JUSTIFY"><font face="Arial">Certain Plan investment options are investments
managed by Deutsche Asset Management and Fidelity. Bankers Trust, a subsidiary of Deutsche
Bank, and Fidelity are the Plan's trustee and recordkeeper, respectively, as defined by
the Plan and, therefore, these transactions qualify as party-in-interest transactions.</font><u><b></p>

<p><font face="Arial">NOTE 11 - PLAN TERMINATION</font></b></u></p>

<p ALIGN="JUSTIFY"><font face="Arial">Although it has not expressed any intent to do so,
UTC has the right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA and to certain Plan provisions that
limit this right when certain ESOP loans remain outstanding. In the event of Plan
termination, participants will become 100 percent vested in their accounts.</font><u><b></p>

<p><font face="Arial">NOTE 12 - PLAN TRANSFERS</font></b></u></p>

<p ALIGN="JUSTIFY"><font face="Arial">During 1999, UTC approved the merger of the Ardco
Corporation 401(k) Plan and the Ardco Corporation Profit-Sharing Plan (the &quot;Ardco
Plans&quot;) into the Plan. Salaried and hourly management-represented participants of the
Ardco Plans were eligible to participate in the Plan effective January 1, 2000. During
2000, approximately $24,481,000 of net assets were transferred into the Plan.</font></p>

<p ALIGN="JUSTIFY"><font face="Arial">During 2000, UTC approved the merger of the Carrier
Carlton Stuart Plan into the Plan. Participants of the Carrier Carlton Stuart Plan were
eligible to participate in the Plan effective December 28, 2000. On December 28, 2000,
approximately $9,792,000 of net assets were transferred into the Plan.</font></p>
<u><b>

<p><font face="Arial">NOTE 13 - TAX STATUS</font></b></u></p>

<p ALIGN="JUSTIFY"><font face="Arial">The Internal Revenue Service has determined and
informed UTC by letter dated February 27, 1998, that the Plan and related trust are
designed in accordance with applicable sections of the Internal Revenue Code
(&quot;IRC&quot;). The Plan has been amended since receiving the determination letter.
However, the Plan administrator and tax counsel believe that the Plan is designed and
currently being operated in compliance with the applicable requirements of the IRC.</font><u><b></p>

<p><font face="Arial">NOTE 14 - SUBSEQUENT EVENTS</font></b></u></p>

<p ALIGN="JUSTIFY"><font face="Arial">During 2000, UTC approved the merger of the Carrier
AES Plan and the Carrier Thermo Industries Plan (the &quot;Carrier Plans&quot;) into the
Plan. Participants of the Carrier Plans are eligible to participate in the Plan effective
January 2, 2001. Subsequent to year-end, approximately $36,071,000 of net assets were
transferred into the Plan.</font></p>

<hr>

<p align="center"></font><font FACE="Arial" SIZE="2"><b>SIGNATURES</b></font><font
FACE="Courier New" SIZE="2"></p>

<p></font><font FACE="Arial" SIZE="2">&nbsp;</p>

<p ALIGN="JUSTIFY">The Plan (or other persons who administer the employee benefit plan),
pursuant to the requirements of the Securities Exchange Act of 1934, has duly caused this
annual report to be signed on its behalf by the undersigned hereunto duly authorized.</font><font
FACE="Courier New" SIZE="2"></p>

<p></font><font SIZE="2">&nbsp;</p>

<p>&nbsp;</p>

<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <p></font><font FACE="Arial" SIZE="2"><b>&nbsp;&nbsp; UNITED TECHNOLOGIES CORPORATION<br>
        &nbsp;&nbsp; EMPLOYEE SAVINGS PLAN II</b></font><font SIZE="2"></p>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>

<p>&nbsp;</p>

<p></font><font FACE="Arial" SIZE="2"><br>
</p>

<p>Dated: June 29, 2001&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:&nbsp; &nbsp;<u>
&nbsp; /s/&nbsp; Laurie P. Havanec
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;
&nbsp; Laurie P. Havanec<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;
&nbsp; Director, Employee Benefits and Human Resources Systems<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;
&nbsp; United Technologies Corporation<br>
</p>
</font>
</body>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>2
<FILENAME>planiiex23.htm
<DESCRIPTION>PLAN II EX 23
<TEXT>

<HTML>

<head>
<TITLE>planIIex23</TITLE>
</head>

<body>
<font SIZE="2">

<p align="right"></font><font FACE="Arial" SIZE="2">Exhibit 23</font><font SIZE="2"></p>
<b>

<p align="center"></font><font FACE="Arial" SIZE="2">CONSENT OF INDEPENDENT ACCOUNTANTS</font></b><font
SIZE="2"></p>

<p></font><font FACE="Arial" SIZE="2">&nbsp;</p>

<p align="justify">We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 333-18743) of United Technologies Corporation of our report
dated June 29, 2001 relating to the financial statements of the United Technologies
Corporation Employee Savings Plan II, which appears in this Form 11-K.</font><font
SIZE="2"></p>

<p>&nbsp;</p>

<p></font><font FACE="Arial" SIZE="2">&nbsp;</p>

<p>/s/ PricewaterhouseCoopers LLP<br>
PricewaterhouseCoopers LLP<br>
Hartford, Connecticut<br>
June 29, 2001</p>
</font>
</body>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>image7.gif
<DESCRIPTION>IMAGE
<TEXT>

begin 644 image7.gif
M1TE&.#EA'P):`/<```P]D?W]_0``````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M`````````````````````"'Y!`$```$`+``````?`EH`0`C_``,('$BPH,&#
M"!,J7,BPH<.'$"-*G$BQHL6+&#-JW,BQH\>/($,:!$`2P,&2)@NB3$D0Y<F2
M(F/*G$FSILV;.'/JW,EP)<F1*U7"'.B2Z%"C1X4FY<FTJ=.G4*-*G1K1)TND
M10/X%%C495"M6;F&?4FUK-FS:-.J+;OUI=6?;2N.M9KS[56P=#_:!9KWYEZ'
M=@,OU?EW+=^X4PL;;BEXL,;&==\J12RV,66\B"U?U3RV,N>?%`,?UNSV\^3/
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M5&:IY48,`ID1?E&QB="$*KYHF)MQR@=5A7*&UB%M:NK97YYO[NF<G0<"]A6=
M/2'Z7GZ$1ABFGTW2EFBCGO4I:4R43AG;AR%NJF.:M0'XYX+N<;BD<(IR.FJ5
MJZ)J*I:MPH-:((&GUKHIJ/Q=ANN-O.[W8XAZ=>II>@%V^*J2I"8K:$+^`?IK
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MMN!\MUUXN82+;7;A)%-H(\!L6S3X;6)*1RM^G#$;,;D09J[YN`7?2]>\H:_G
MIN?2>ATWH:T%"CKDF[/W-DZ3"TPZYN[>!Z[:C,N[+K__\IOKP74/[#&TR$Z\
M>M3+8ZO\@[("J;!(YZ*)_+#9MJOLVM`GSWSDKH/;K?#<DE_QOOG`[[OH^>L3
M[.O[ZK>?_;22M^[1]+_M_COZ_/=?>>UX2YWVU.4_:D7/5K?2'_SZE[U"I2]^
MT!'@LA9VO^I93X'CJQW[Y(?!`$+.@>USW^7`AL#AE7!\[GM@"CG8/`1F4'=R
MVAWIS&7!"D;PA1@LGNVN]SK.<<]?Q1MA`G-8*HKE\']%C)W;`N8BQ66N8E"<
M'490)RT(YDET,Q18"&FHI1Y*\&G52I*H!$7%^`51BI_[(1F]N,.+\2^*P*I4
MV>8(I2:"KT2B@6.%Z,C'.MJ/1OHQ(A15V,="&I)C)OQ:4"IVR$8Z4BU;:\O'
M)GG'1UKRDO^)>Q[4SH3)3GKRDZ`,)1_!Z!91FO*4=<(>R^B'RE:ZLGZ62UB_
M`O7*6MK2@%4+SFEL=LM>]G)YNS1:,'U)S%#&<I5)D^,PB\G,2ZIQ@,G$S#*5
MTLQJEBV)UQ)F&''$26MZ4V>Q0IIGQ!DDI7WSG#GC9O?$J<AH>@N=\`3G*CL6
M-:1MLE]HC*<^,\9$21ZJ:V.2FJ?05<E]&M1I]1K=/U/"-=!$+WQN/*A$CW0V
M-K9DG,IT#4TT*+L61K2C=T0<3SP(,<41IG>(M.-'C8)1^-".AW/#9D'SU\TS
MHC18)F7+33>Z4YYN+XN#0E#?Q%C3B>`NIR"U5.E(&E.DEK2HD7&1JDW4-3"X
MN5&J!O2>4F7"U#7UM*I-Z>J=>NHE"AHN;&6TZ@DI)Z;4M?&8BB(>O>CTMR^J
M4Z&Y\Z?8ZEI`X2E5I?CL$U_;"*FTGA6L."7J,_^8PC\"<:E0_2#L)OA8O\[P
MAI"=UE$-BT2/JI*S!(0E5@TU4QLJ=IZ5%6+W>KA'HVXVK7+M[$]AJT29,A:S
M_JNM7O]W@S\><52$,`T>#IVGR:VF\;1#).[W#DA"K=*3B$?,UOZVN"T52G>R
ME3VLXVBJ7-0FM[NR]&XB!WJ\T;9UN&MM;`/5%UQ"5G>%U[7B:L?+RN-NMZEQ
M].H168C<SWK6;LTR;S\WYT'5"C>$0CPP?\%+7X!EMH0K]6%]U2I2"I-WMO0=
MX&+]F]KR1M9W;^UO/M_87@3'EX%C9#`*X1M;V;HV=MRML(4U+%[Y_A>['?SJ
M$@<<60.S%[HB!N%[;>M<BW;6OO>]8*>26N3`?C>]&^Q=@#^LQ16G;;G-?7*3
M49A@&S/WPML,;Y%C/+/>DEG&HF6PDS.LX!4N>,M]1=CUN.S_X3!GF<99/G")
MWSSF!:)XONA54T*S.]?\FK;%ZXTRD06JY@V*"X`Y3O&7\:QE2O,NNI+F,&W%
MM\!$4].N787CH0GM:3>C+;:M+32&JXKJ4G<YQ.)=<Q81O6@>$QK)AL8QFO5[
M:U?GE8>L:_&C?SW8T*H7R&4V+!89ZZA:@YI^QGZV9?4(XU&7]JE[I3+U`@C4
ME8D5UQ&VLJJ+BEB(SI?:8"+K1&MY8A/)$-VGGO"ZO8E;=\-U*_#F[+SW6>V2
M`3;?W]YW,0?K;TH"/*#F%;C""XYE@+]SX1"7TJ3?LYJ*1OSB#<MC)!N*[W)C
M_.-&FK(B.=[QA(/\Y#-J^/NFC/*6"&^LSL_5MLMG#^XD.U]:WC3/N<YW[O*`
#```[
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
