ITT Corporation

ITT Industries' Board of Directors Approves Stock Repurchase Program of $1.1 Billion

    7/29/1998

    Move is part of repositioning for higher profitability, growth, predictability
    
        WHITE PLAINS, N.Y., July 29 /PRNewswire/ -- ITT Industries, Inc.
    (NYSE: IIN) today announced that its Board of Directors has formally
    authorized a stock repurchase program of $1.1 billion to begin immediately.
    The company said that this is the first step to re-deploy the $2.6 billion in
    after-tax cash proceeds expected from the recently announced agreements to
    sell the company's automotive Electrical Systems and Brake and Chassis
    businesses.
        "Now that we have successfully completed the strategic review of our
    automotive group, we intend to re-deploy these proceeds quickly and
    efficiently to enhance shareholder value," said Travis Engen, chairman,
    president and chief executive of ITT Industries.  "With the confidence that we
    have for our growth opportunities in 1999 and beyond, we view our stock as an
    especially attractive investment."
        Engen said the stock repurchase program is part of ITT Industries'
    continuing transformation into a more profitable, higher growth, more
    financially flexible and predictable investment.  The remaining proceeds will
    be used to accelerate the company's growth in its core businesses of fluid
    technology, defense, electrical connectors and automotive components, and to
    strengthen its financial position through debt reduction.
        "We have in place a program to identify acquisition opportunities that fit
    within our core industries and meet our stringent criteria," Engen said.  "We
    will consider only acquisitions that offer strong opportunity to add economic
    value and possess solid growth characteristics."
        Engen said that the completion of the stock repurchase program is
    contingent upon the receipt of all proceeds from the divestitures of both
    automotive units.  The sale of both the Electrical Systems unit and the Brake
    and Chassis unit are expected to close either late in the third quarter or
    early in the fourth quarter.
        At the close of business on July 28, 1998, there were approximately
    118.45 million shares issued and outstanding, and the closing price on the New
    York Stock Exchange was $32.50 per share.  Shares repurchased through open
    market and other transactions will be held in the treasury for general
    corporate purposes.
        ITT Industries (http://www.ittind.com) is a leading worldwide diversified
    manufacturing company, with 1997 sales of $8.8 billion from its three primary
    business segments: automotive, defense & electronics, and fluid technology.
    ITT Industries, through its automotive unit, is one of the largest independent
    suppliers of systems and components to automotive manufacturers.  In the area
    of defense and electronics, ITT Industries is a leader in the design,
    manufacture and support of high technology electronic systems and components
    for defense and commercial markets. In fluid technology, ITT Industries is the
    world's largest pump manufacturer, and a leading producer of products, systems
    and services for the movement and control of fluids.  Based in White Plains,
    New York, ITT Industries employs more than 58,000 people around the world.
        In addition to the New York Stock Exchange, ITT Industries' stock is
    traded under the symbol ("IIN") on the Midwest, Pacific, London, Frankfurt and
    Paris exchanges.
    
        Certain material presented herein consists of forward-looking statements
    which involve known and unknown risks, uncertainties and other important
    factors that could cause actual results to differ materially from those
    expressed in or implied from such forward-looking statements.  Such factors
    include those set forth in Item 1. Business and Item 7.  Management's
    Discussion and Analysis of Financial Condition and Results of Operations -
    Forward-Looking Statements in the ITT Industries, Inc. Form 10-K Annual Report
    for the fiscal year ended December 31, 1997, and other of its filings with the
    Securities and Exchange Commission.
    
        ITT Industries' and its subsidiaries' news releases are available at no
    charge via fax and the Internet.  For ITT Industries news and information on
    the Internet, visit http://www.ittind.com.  To receive releases by fax, call
    800-758-5804, extension 110006.
    
    SOURCE  ITT Industries, Inc.
    
    

    Web site: http://www.ittind.com
    CONTACT: Tom Glover of ITT Industries, 914-641-2160

About ITT

ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and oil and gas markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in White Plains, N.Y., with employees in more than 35 countries and sales in a total of approximately 125 countries. The company generated 2016 revenues of $2.4 billion.

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Jason Moss
tel +1 914-641-2030
jason.moss@itt.com

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tel +1 914-304-1809
laurent.lawrence@itt.com

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