ITT Industries Fluid Systems:Strategic Review And Strong Q3 Results

    * Alternatives explored for automotive fluid systems unit of Specialty
      Products segment
    * Expected third quarter diluted EPS of $0.75, up 4 percent
    * Full third quarter results to be announced as scheduled on October 25th

    WHITE PLAINS, N.Y., Oct. 23 -- ITT Industries, Inc.
announced today that it has initiated a strategic review of its
automotive fluid systems business, a unit that accounts for approximately
$435 million in annual revenues through the sale of tubing and connectors for
brake and fuel lines to the automotive market.  Eighty percent of the unit's
sales are in North America, with the remainder in Europe.
    "We routinely reassess all of our businesses to ensure they support our
long-term objective of becoming a premier multi-industry company," said Lou
Giuliano, Chairman, President and Chief Executive Officer of ITT Industries.
"Our automotive fluid systems business is a well-managed, profitable unit with
a strong future.  Our strategic review of the business will allow us to
evaluate the highest value-creating strategy for ITT Industries."
    "We have a strong record of managing a diverse portfolio, redeploying
assets and improving the processes within each of our businesses to maximize
our return," Giuliano added.  "Our intention is to explore all alternatives
open to us with respect to our automotive fluid systems business."
    No target date has been set for completion of the evaluation.
    The company also said today that it expects to announce third quarter
diluted earnings per share of $0.75, an increase of $0.03 or 4 percent over
the period last year, when it releases its third quarter earnings report on
Thursday, October 25th.  The company said the expected results are a
reflection of the strength of its balanced portfolio and global footprint, as
well as aggressive continuous process improvement measures and lower corporate
expenses and interest costs.  ITT's businesses serving the defense and
water/wastewater markets are expected to show revenue growth for the period,
offset by the downturn in the company's electronic components businesses and
industrial pumps businesses.  Year-to-date free cash flow is expected to
approach 90 percent of net income.  The company said it is comfortable with
Wall Street consensus estimates for earnings for the full year 2001.

    ITT Industries, Inc. (http://www.itt.com) supplies advanced technology
products and services in key markets including: electronic interconnects and
switches; defense communication, opto-electronics, information technology and
services; fluid and water management and specialty products.  Headquartered in
White Plains, NY, the company generated $4.8 billion in 2000 sales