ITT Corporation

ITT Industries to Acquire STX Pte. Ltd.; Will Be Market Leader in High-Growth Switch Segment

    8/29/1999

        * Immediately Accretive, Acquisition to Add $64 Million in Annual Sales
        * Brings Geographic, Product Synergies to Company's Cannon Division
    
        WHITE PLAINS, N.Y. and SINGAPORE, Aug. 29 /PRNewswire/ -- ITT Industries,
    Inc. (NYSE: IIN) today announced that it has signed a definitive agreement to
    acquire STX Pte. Ltd. (STX), a wholly-owned subsidiary of San Teh, Ltd. of
    Singapore and a leading producer of conductive rubber switches (CRS) that are
    used in mobile telephones, computer keyboards, high-end remote control units
    and keyless entry systems.  The acquisition makes ITT Industries the leading
    provider of CRS, serving a rapidly growing global market.  The transaction is
    subject to San Teh, Ltd. shareholder approval, and customary closing
    conditions.
        "This acquisition fits exactly with our strategy to grow ITT Industries'
    businesses through acquisitions that add shareholder value," said Travis
    Engen, Chairman and Chief Executive of ITT Industries.  "In addition to being
    immediately accretive, the addition of STX brings complementary products and
    market channels which will accelerate the growth of the combined ITT
    Industries and STX switch businesses."
        STX is headquartered in Singapore and generated 1998 sales of
    US$64 million, with primary manufacturing facilities located in the People's
    Republic of China.  The company provides products to leading worldwide
    manufacturers within the mobile communications, transportation and industrial
    markets.
        "STX's geographic base will allow us to strengthen our market position for
    all of our switch products in the Asia-Pacific region, building on STX's sales
    and manufacturing presence in China," said Gerard Gendron, president of ITT
    Industries' Cannon division.  "It will also provide us a low-cost source of
    CRS products for key customers in North America and Europe, where we already
    have well-established sales channels and customer positions."
        The company will operate within ITT Industries' Cannon division, in the
    company's Connectors & Switches segment.  Cannon's existing switch business
    has been achieving double-digit revenue and income growth over the last
    five years.  Primary manufacturing is done in the US, France and Germany, and
    with sales offices in every major country worldwide.  Cannon's switch business
    produces electromechanical switches, CRS, smartcard connectors and
    value-added panel and switch assemblies.  The acquisition of STX will increase
    annual switch sales significantly, and will make ITT Industries the world's
    leading producer of CRS.  Initial integration efforts will focus on sales and
    marketing activities to ensure that the anticipated revenue synergies are
    achieved.
        ITT Industries, Cannon division is an international supplier of electronic
    components, interconnect systems, switches, information card technology and
    high speed structured cabling systems and services.
        ITT Industries, Inc. (http://www.ittind.com) is a global engineering and
    manufacturing company with leading positions in the markets it serves,
    generating 1998 sales of $4.5 billion.  ITT Industries is the world's premier
    supplier of pumps, systems and services to move and control water and other
    fluids.  The company is a major supplier of sophisticated military defense
    systems, and provides advanced technical and operational services to a broad
    range of government agencies.  ITT Industries also produces connectors,
    switches and cabling used in telecommunications, computing, aerospace and
    industrial applications, as well as network services.  Further, ITT Industries
    makes industrial components for a number of other markets, including
    transportation, construction and aerospace.  Based in White Plains, NY, ITT
    Industries employs approximately 33,000 people around the world.
        In addition to the New York Stock Exchange, ITT Industries' common stock
    is traded 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, 1998, 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 Martin, 914-641-2157 or tmartin@hq.ittind.com, or
    Tom Glover, 914-641-2160 or tglover@hq.ittind.com, both of ITT
    Industries, Inc.

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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