ITT Corporation

ITT Industries' Chairman Travis Engen Speaks to Goldman Sachs Conference

    12/2/1998

                  - Engen outlines transformation of ITT Industries
                    - Structural cost reduction program discussed
    
        WHITE PLAINS, N.Y., Dec. 2 /PRNewswire/ -- Travis Engen, chairman and
    chief executive of ITT Industries, Inc. (NYSE: IIN) today will address the
    Goldman Sachs Global Capital Goods Conference in New York City.  In his
    remarks prepared for delivery this morning, Engen recaps the transformation
    that ITT Industries has undergone in the last two years, and outlines steps
    the company will take in the coming months to further improve its financial
    position.
        "The actions we have taken, and those we will take over the next year,
    demonstrate clearly the degree to which ITT Industries is committed to
    increasing shareholder value," Engen says.  "Some of the steps mean
    recognizing today the future potential value creation of a business through
    its sale.  This was the case with the recent divestiture of our automotive
    businesses.  ITT Industries received significant value, and we improved our
    balance and opportunities for sustained earnings growth, while reducing our
    revenues."
        Engen's remarks outline the company's new reporting structure with four
    operating segments.  The largest of these segments is Pumps and Complementary
    Products, accounting for 39 percent of sales.  The Defense Products and
    Services segment now makes up 29 percent of revenues, while Connectors and
    Switches account for 13 percent.  A final segment, Specialty Products,
    includes businesses in industrial components, specialty valves, and marine
    markets, together accounting for 19 percent of sales.
        Engen is also expected to review a structural cost reduction program which
    the company will implement in the coming months.
        "We have conservative economic growth expectations for next year and we
    want to be able to deliver earnings growth and margin improvement in what will
    be, at best, a mixed market environment," Engen says.  "We anticipate a major
    restructuring across all of our units, particularly in our pumps business and
    our connector business.  This will result in a fourth quarter charge in the
    range of $370 to $400 million, with a cash impact of approximately half of the
    total, and could affect as many as 1,200 positions at the company."
        Engen says that the restructuring efforts will focus on rationalization of
    production facilities, product lines and overhead, and will impact all of the
    company's four segments.  The fourth quarter charge would include other asset
    write-offs and reserve actions.
        The company has continued an aggressive share repurchase program.
    Initiated on July 30, 1998 using proceeds from the sale of automotive assets,
    the program earmarks $1.1 billion to repurchase shares on the open market.
        "As of the end of November, we have repurchased approximately 18.5 million
    shares, which represents about 15 percent of the shares outstanding at the
    time we initiated the buyback," Engen says.  "We have been able to purchase
    shares more quickly than we had originally anticipated, and we intend to
    complete the program on a timely basis."
        Looking ahead, Engen reiterates the company's interest in making strategic
    acquisitions where they can create shareholder value and strengthen the
    company's positions in its chosen markets.  Engen notes many positive
    attributes of the company's more balanced group of businesses.
        "These are important times for ITT Industries," he says.  "We are in a
    good financial position to take advantage of the current global economic
    environment.  We want to maximize this financial advantage while finding the
    best ways to grow our existing businesses in an efficient manner.  We think
    our leadership positions in these important markets will provide significant
    opportunities for growth."
    
        About ITT Industries
        ITT Industries, Inc. (http://www.ittind.com) is a global industrial manufacturing
    company with leading positions in the markets that it serves, generating
    annual global sales of $4.4 billion.  ITT Industries is the world's largest
    producer of pumps and also produces systems and services to move and control
    water and other fluids.  The company is also a leading supplier of
    sophisticated military defense systems, including night vision devices, secure
    communication systems and avionics, and provides advanced technical and
    operational services to a broad range of government agencies.  ITT Industries
    is a leading provider of electrical interconnects for cellular telephones,
    aerospace, network communications, "smart cards" for personal data storage,
    and PC cards for laptop computers.  Further, ITT Industries provides products
    for highly-focused industrial markets, such as shock absorbers serving high-
    end, specialized auto needs, trains and bridges, fluid handling products such
    as brake and fuel line tubing, engineered valves, aerospace controls and brake
    friction materials.  Based in White Plains, NY, ITT Industries employs
    approximately 35,000 people around the world.
        In addition to the New York Stock Exchange, ITT Industries' common 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
    Company News On-Call: http://www.prnewswire.com/comp/110006.html
    or fax, 800-758-5804, ext. 110006
    CONTACT: Tom Glover of ITT Industries, 914-641-2160
    NOTE TO EDITORS: 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.

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.

Investors

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

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

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