ITT Industries Press Release 3Q 2002

12/11/2002

ITT Industries Reports Third Quarter EPS of $1.28 with Revenues Up 10%
<ul>
<li>EPS of $0.94 before one-time items, up 11 percent year-over-year</li>
<li>Q3 organic revenues up 5% on growth in three of four segments</li>
<li>Year-to-date free cash flow of $346 million including tax refund</li>
<li>Company reiterates full-year 2002 EPS growth and strong cash flow</li>
</ul>

White Plains, New York ITT Industries, Inc. (NYSE: ITT) today reported third quarter 2002
net income of $120.4 million, and diluted earnings per share (EPS) of $1.28, up $52.9 million and
71 percent respectively over the third quarter 2001 results. Reported results for the third quarter
2002 include the benefit of two one-time items: a net tax refund of $30.6 million ($0.33 per
share) and an adjustment for the quarterly review of restructuring reserves of $1.2 million after-
tax ($0.01 per share). The reported results also include the January 1, 2002 implementation of
the Statement of Financial Accounting Standards No. 142 (FAS 142) "Goodwill and Other
Intangible Items," which had the effect of eliminating the amortization of goodwill. Excluding
one-time items, third quarter 2002 net income was $88.6 million, and diluted EPS was $0.94. Had
FAS 142 been in effect in 2001, third quarter net income for 2001 would have been $76.6 million
and EPS would have been $0.85, resulting in year-over-year increases in the third quarter of $12.0
million and 11 percent respectively, excluding the impact of one-time items.

Third quarter 2002 revenues increased 10 percent to $1.24 billion compared with $1.12 billion in
the period last year due to continued strong performance in ITT Industries' Fluid Technology,
Defense Electronics & Services and Motion & Flow Control segments. Excluding the positive
impact of foreign currency translation and acquisitions, the company realized organic revenue
growth of 5 percent in the quarter. While segment operating income increased $10.2 million,
segment operating margin declined by 30 basis points on a comparable basis, due mostly to
segment mix changes. Net income benefited from lower interest costs, which is the result of
continued favorable interest rates, increased cash flow and reduced debt balances.
...
<a href="/pdf/en/press-release-200211.pdf">Read the complete Press Release in PDF</a>

ITT-Lowara (www.lowara.com), headquarters of "Residential and Commercial Water - EMEA" part of the ITT Corporation and located in Montecchio Maggiore, Vicenza - Italy, is a leader in the manufacture of hydraulic pumps and water handling and control systems. It has 1.348 employees in Europe, 771 operating in Italy. In 2007 its consolidated sales totalled about 284 million euro, or over 390 million dollars.
ITT Corporation (www.itt.com) is a diversified high-technology engineering and manufacturing company dedicated to creating more livable environments, enabling communications and providing protection and safety. The company plays an important role in vital markets including water and fluids management, global defense and security, and motion and flow control. ITT employs approximately 40,000 people serving customers in more than 50 countries. Headquartered in White Plains, N.Y., the company generated $9 billion in 2007 sales.