ITT Corporation

ITT Industries Sets Strategic Review of its Automotive Operations, Seeking To Create Greater Long Term Value

    3/18/1998

        WHITE PLAINS, N.Y., March 18 /PRNewswire/ -- ITT Industries, Inc.
    (NYSE: IIN) today announced that it has launched a strategic review of its
    automotive business and has retained financial advisors to assist in the
    review.
        "Over the past two years, we have been resolute in our determination to
    create greater value for all of our businesses," said Travis Engen, chairman,
    president and chief executive of ITT Industries.  "We have refined our
    enterprise, making both strategic divestitures and acquisitions.  We have
    become the world's leading producer of pumps and valves through our purchase
    of Goulds Pumps, and grown both our electrical connector and defense
    businesses."
        "Our automotive units are sound, highly competitive businesses with
    leading market positions, and outstanding reputations for quality and
    service," Mr. Engen added.  "We have maintained a solid level of profitability
    in these operations in the face of extreme competitive forces, and we have
    positioned them for steadily improving earnings. They remain terrific
    businesses, and our intent through this review is to determine the most
    effective way to maximize their value."
        The review -- focusing on the businesses involved in engineering,
    manufacturing and marketing automotive brakes, chassis modules and electrical
    systems in the U.S. and abroad -- will involve an examination of all strategic
    alternatives, including the possible sale of one or more of these major
    businesses.  This review does not include the remaining lines of business
    comprising the automotive segment which account for approximately twenty
    percent of overall automotive sales: the Components Group, producing fluid
    handling, friction and shock absorber products, and the Automotive Switch
    business.  The company has engaged Lazard Freres & Co. L.L.C. and Goldman,
    Sachs & Co. to assist in the review.  No target date has been set for
    completion of the evaluation.
        Mr. Engen said that should the review result in a sale, "proceeds from the
    sale would be used to finance further internal and/or external growth of core
    businesses, or to repurchase common stock, pay down debt, or some combination
    of these uses."
        ITT Industries is among the largest independent suppliers of components,
    systems, and modules to all 28 major motor vehicle manufacturers worldwide, as
    well as to the automotive aftermarket.  In 1997, sales of continuing
    businesses in the automotive business totaled approximately $4.7 billion of
    ITT Industries total sales of $8.5 billion.  Sales of the automotive
    businesses involved in the review totaled approximately $3.9 billion.
    With sales of $2.2 billion last year, the Brake and Chassis unit is a world
    leader in the design and manufacture of antilock brake systems (ABS) and
    traction control systems (TCS).  Building on those technologies, it is now
    launching its new Electronic Stability Program (ESP) which combines elements
    from existing ABS and TCS systems with new features to provide drivers with
    even greater control of their vehicles.
        The Electrical Systems unit had 1997 sales of approximately $1.7 billion
    for the units under review, which include wiper systems, air management
    components, lamps, and electric motors for power windows and other
    applications.
        The Components group and electrical switch business, which are not part of
    the strategic review, had 1997 sales of approximately $800 million.
    ITT Industries (http://www.ittind.com) is a leading worldwide diversified
    manufacturing company, with 1997 total sales of $8.8 billion dollars from its
    three primary business segments: Automotive, Defense & Electronics, and Fluid
    Technology.  ITT Defense & Electronics is a leader in the design, manufacture
    and support of high technology electronic systems and components for defense
    and commercial markets. ITT Fluid Technology is the world's leading
    manufacturer of pumps, systems and services for the movement, measurement, and
    control of fluids.
        Under the symbol "IIN," ITT Industries is listed on the New York Stock
    Exchange and the Midwest, Pacific, London, Frankfurt, and Paris exchanges.
    
    SOURCE  ITT Industries, Inc.
    
    

    Web site: http://www.ittind.com
    CONTACT: Tom Martin, 914-641-2157, or Tom Glover, 914-641-2160,
    both of ITT Industries

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

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