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ITT CONCLUDES ALCATEL AGREEMENT

 ITT CONCLUDES ALCATEL AGREEMENT
 NEW YORK, July 3 /PRNewswire/ -- ITT Corporation (NYSE: ITT)


announced today the closing in Paris of the previously announced sale of ITT's 30 percent stake in Alcatel, N.V. to its joint venture partner, Alcatel Alsthom.
 In return for the transfer of its 14,048,561 shares in Alcatel, N.V., representing 30 percent of the company, ITT received today $1 billion (U.S.) in cash and took ownership of 9.1 million newly issued shares of Alcatel Alsthom. These shares, which represent approximately seven percent of the outstanding Alcatel Alsthom shares, at yesterday's closing price of 638FF would be valued at approximately $1.1 billion (U.S.). ITT has agreed to retain these shares for five years.
 As part of the agreement, ITT will also receive cash payments, in U.S. dollars, of $766.8 million in July 1993 and $816.6 million in July 1994.
 As a result of today's closing, ITT will be recording a gain of approximately $600 million after-tax in the third quarter of this year.
 In a related event, Rand V. Araskog, ITT chairman, president and chief executive was elected to the board of directors of Alcatel Alsthom at the company's annual meeting of shareholders on June 25.
 Araskog reiterated that ITT has been very pleased with its investment in Alcatel N.V. since the beginning of the joint venture at the end of 1986. "We are excited about our new ownership position in Alcatel Alsthom," Araskog said. "It allows us to maintain an important presence in a powerful and successful publicly traded international company," the chairman concluded. The U.S. dollar value of the Alcatel Alsthom shares issued to ITT has appreciated by approximately $100 million since the transaction was first announced on March 3.
 The company said that the proceeds from the sale of Alcatel N.V. provide the company with increased financial flexibility. The company announced that it may use some of the proceeds to buy back ITT shares and at the annual meeting of ITT shareholders on May 5, the ITT board of directors approved the repurchase of up to an additional 25 million shares of the company's common stock.
 -0- 7/2/92
 /CONTACT: Jim Gallagher of ITT, 212-258-1261/
 (ITT) CO: ITT Corporation; Alcatel, N.V.; Alcatel Alsthom ST: New York IN: SU:


KD-AH -- NYF004 -- 6429 07/03/92 09:48 EDT
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Publication:PR Newswire
Date:Jul 3, 1992
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