ITT Corporation Announces Plea Agreement in its Night Vision Business

     o    Company agrees to pay $50 million fine and invest $50 million in night
          vision technology

     o    Comprehensive export compliance audit, monitoring and training effort
          significantly enhanced

     o    Settlement payment is covered by previous reserves

White Plains, N.Y., March 27, 2007 - ITT Corporation today announced a final
settlement relating to an investigation that began in 2001 regarding ITT Night
Vision's compliance with International Traffic in Arms Regulations (ITAR). As
part of the agreement, the company will pay a $50 million fine, and will plead
guilty to one ITAR violation relating to the improper handling of sensitive
documents, and one ITAR violation of making misleading statements. The
government has agreed to defer action regarding a third count of ITAR violations
pending ITT's implementation of remedial actions.

The Company has agreed with the government to continue to invest in research and
development and capital improvements for its night vision products so it can
continue to provide the most advanced night vision technology to the U.S.
military and its allies. The value of these investments is $50 million over the
next five years. In addition, the company has been engaged in a comprehensive
review of its policies, practices, training programs and procedures, including
complete audits of all business units. New monitoring approaches, communications
and training initiatives have already begun as a result of this review and more
are expected. As announced in December, the financial impact of the fine is
fully covered by previous reserves, including a $25 million charge to net income
that was taken in the fourth quarter of 2006.

"We have been cooperating with the government in this investigation and we have
voluntarily disclosed all discrepancies that our internal reviews revealed,"
said Steven R. Loranger, chairman, president and chief executive officer of ITT
Corporation. "While this settlement relates to the actions of a few individuals
in one of our 15 business units, we regret very much that these serious
violations occurred. I want to reinforce, however, that the heart of our night
vision goggles - the tube - is secure. No technical information regarding the
tube was ever compromised."

Loranger added, "Our renewed commitment to a culture of integrity and compliance
applies to the entire company. ITT has a long track record as a trusted
employer, supplier and partner, and we are firmly committed to ensuring that
this will not happen again. These violations have made it clear that we had gaps
in our compliance programs.
The steps we are taking now will address these issues in a comprehensive way."

The company has already begun implementing stricter new measures such as:

     o    Insuring that all personnel understand and follow applicable
          regulations governing the export of critical technology

     o    Naming a new compliance officer



     o    Instituting a required ethics and compliance training program for all
          employees worldwide

     o    Developing a comprehensive computer tracking program to monitor all
          packages sent from ITT facilities

     o    Working with independent experts to refine and enhance the
          effectiveness of these measures.

In a related action, the Department of State has placed restrictions on certain
exports of night vision equipment and technical data and ITT Night Vision will
not be allowed to ship devices to specific parties for a period of not less than
one year. ITT estimates that this restriction will apply to less than five
percent of its total Night Vision sales. The restriction will not affect any of
ITT's other business units, and the company remains confident in its financial
forecast for 2007 released in December of 2006 and updated in February of this
year.

"ITT plays a vital role in national and international security through its
defense products, space and related services. We recognize that any company that
supplies high technology equipment to the Defense Department bears a special
responsibility," Loranger said. "We will meet this obligation with the
compliance measures we've already instituted and the additional reforms to be
put in place as part of this agreement."

About ITT Corporation
ITT Corporation (www.itt.com) supplies advanced technology products and services
in several growth markets. ITT is a global leader in the transport, treatment
and control of water, wastewater and other fluids. The company plays a vital
role in international security through its defense communications and
electronics products; space surveillance and intelligence systems; and advanced
engineering and related services. It also serves the growing leisure marine and
electronic connectors markets with a wide range of products. Headquartered in
White Plains, N.Y., the company generated $7.8 billion in 2006 sales. In
addition to the New York Stock Exchange, ITT Corporation stock is traded on the
Paris, London and Frankfurt exchanges.

"Safe Harbor Statement" under the Private Securities Litigation Reform Act of
1995 ("the Act"): Certain material presented herein includes forward-looking
statements intended to qualify for the safe harbor from liability established by
the Act. These forward-looking statements include statements that describe the
Company's business strategy, outlook, objectives, plans, intentions or goals,
and any discussion of future operating or financial performance. Whenever used,
words such as "anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe," "target" and other terms of similar meaning are intended to identify
such forward-looking statements. Forward-looking statements are uncertain and to
some extent unpredictable, and 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.
Factors that could cause results to differ materially from those anticipated by
the Company include general global economic conditions, decline in consumer
spending, interest and foreign currency exchange rate fluctuations, availability
of commodities, supplies and raw materials, competition, acquisitions or
divestitures, changes in government defense budgets, employment




and pension matters, contingencies related to actual or alleged environmental
contamination, claims and concerns, intellectual property matters, personal
injury claims, governmental investigations, tax obligations, and changes in
generally accepted accounting principles. Other factors are more thoroughly set
forth in Item 1. Business, Item 1A. Risk Factors, and Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations -
Forward-Looking Statements in the ITT Corporation Annual Report on Form 10-K for
the fiscal year ended December 31, 2006, and other of its filings with the
Securities and Exchange Commission. The Company undertakes no obligation to
update any forward-looking statements, whether as a result of new information,
future events or otherwise.

contact:
Tom Glover
(703) 790-6334
tom.glover@itt.com