ITT Corporation

ITT Industries Closes Sale of Automotive Electrical Systems Unit to Valeo

    9/28/1998

        WHITE PLAINS, N.Y., Sept. 28 /PRNewswire/ -- ITT Industries, Inc.
    (NYSE: IIN) announced today that it has closed the sale of its automotive
    Electrical Systems business to Valeo, SA of France.  The transaction, which
    was announced on June 25, 1998, is valued at approximately $1.7 billion.  On
    Friday, September 25, 1998, the company completed the sale of its Brake and
    Chassis business unit to Continental AG for $1.93 billion.  Total after-tax
    cash proceeds from both transactions is approximately $2.7 billion.
        "With the conclusion of both sales, we are now free to focus on our
    strategic growth prospects, including acquisitions that can enhance the
    positions of our existing businesses," said Travis Engen, chairman, president
    and chief executive of ITT Industries.  "Our previously announced $1.1 billion
    stock repurchase program is already well underway.  Further, we will be able
    to substantially improve our capital position to provide the financial
    flexibility to grow all of our business lines."
        Engen said with both transactions completed in the third quarter as
    expected, further details of the results of the divestments will be included
    in the third quarter earnings report to be released on October 20, 1998.
    
        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.
    Following the divestiture of the company's automotive brakes and electrical
    systems businesses, the company expects to generate annual global sales of
    $4.4 billion. ITT Industries is the world's largest producer of pumps, systems
    and services to move, measure 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 automotive
    markets, such the Koni(R) brand shock absorbers serving high-end, specialized
    auto needs in addition to shock absorbers for trains and bridges, fluid
    handling products such as brake and fuel line tubing, and brake friction
    materials.  Based in White Plains, NY, ITT Industries employs approximately
    34,000 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.
    
        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 or fax,
    800-758-5804, ext. 110006
    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.

Investors

Jason Moss
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jason.moss@itt.com

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

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