A randomized algorithm with stream splitting for design of heat exchanger networks is presented in this work. The algorithm has provisions for splitting any one of the process streams. We have studied three benchmark problems taken from literature. The results obtained from these studies clearly indicate the strength of the randomization method in finding a cost-effective network. This random search method can find better networks, which are sometimes unnoticed by other optimization techniques. The simplicity of this method as well as the networks obtained is an additional attractive feature, which should encourage the designers to use it. From the results of this study, randomization is recommended as a reliable check for designing heat exchanger networks. (c) 2006 Elsevier Ltd. All rights reserved.