WHITE PLAINS, NY -- ITT Industries, Inc. has signed a definitive agreement to sell its automotive brake and fuel tubing and components business to Cooper-Standard Automotive, a privately held company, for $205 million in cash. The business serves the transportation industry with reported 2004 revenues of $437 million. Both parties expect to finalize the transaction in the first quarter of 2006.

"This transaction is consistent with our value-based strategy of focusing ITT's assets and attention on our core businesses, such as advanced water treatment, water and wastewater solutions, space, defense electronics, systems and services, and leisure marine in order to provide greater potential for growth and profitability," said Steve Loranger, chairman, president and CEO of ITT Industries. "With this transaction, we are moving our portfolio closer toward achieving premier multi-industry performance, with an improved growth profile, increased margins and a more efficient use of capital.”

ITT's auto tubing business employs approximately 3,500 people in seven countries, with major manufacturing sites in the U.S., Canada, Mexico, Germany, France and the Czech Republic.

Loranger said the revenue and earnings from its automotive tubing business will be moved into discontinued operations, reducing full-year 2005 earnings per share (EPS) by an estimated 18 cents per share, resulting in a full-year 2005 earnings from continuing operations of between $5.17 and $5.22.

Loranger said the company is also reviewing its businesses within the Electronic Components group to determine which businesses are consistent with ITT's long-term financial objectives. ITT expects to announce its strategic intent for the businesses within the Electronic Components group during its Dec.16 guidance call forecasting 2006 earnings.

_______________________________________

Click here to view the rest of today's headlines.