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ITT SIGNS AGREEMENT TO ACQUIRE DESERT INN PROPERTIES IN LAS VEGAS

 CARSON CITY, Nevada, June 28 /PRNewswire/ -- ITT Corporation (NYSE: ITT) announced today its entrance into the US gaming industry with the signing of a definitive agreement to acquire the Desert Inn Properties of Las Vegas, from Tracinda Corporation for approximately $160 million.
 The Desert Inn Properties, located on 185 acres of land in the center of the world-famous Las Vegas Strip, include the Desert Inn Hotel and Casino, its adjoining 18-hole PGA championship golf course and approximately 35 acres of vacant land immediately adjacent to the existing hotel and casino and fronting the strip.
 "This agreement is the culmination of year-long discussions which began with personal conversations between Kirk Kerkorian and me," Rand V. Araskog, chairman, president and chief executive of ITT said. "I am pleased that they materialized favorably to both companies," Mr. Araskog continued.
 ITT expects to close the transaction upon licensing by state and county gaming authorities, which it hopes may be achieved by early fall.
 "We are very pleased to add a full-service resort in Las Vegas, the country's number one destination city and one of the largest convention cities in the U.S. with over 22 million visitors per year, to ITT Sheraton's internationally renowned lodging system," said Mr. Araskog. "The acquisition of the Desert Inn properties provides us with the opportunity to immediately enter the North American land-based gaming industry and offers us the ability to carefully enlarge and expand its current facilities at a future time," Mr. Araskog said. "The end result of such a program, which could be implemented over the next five years, is the creation of a property that would attract visitors from all over the world," Mr. Araskog said.
 Burton M. Cohen, chairman and chief executive of the Desert Inn Hotel and Country Club, said, "We are proud to be the property that brings ITT, with its worldwide reputation and resources, to Las Vegas. We anticipate that they will make a significant contribution to the gaming industry and to Las Vegas in the years to come," Mr. Cohen concluded.
 "The Desert Inn offers a number of advantages that make it, in our estimation, one of the most attractive and unique properties in Las Vegas," Mr. Araskog said.
 Some of these features include:
 -- The Desert Inn, which has the largest frontage, approximately 1700 feet, of any hotel casino on the "Strip," is centrally located across the road from The Fashion Show Mall and the soon-to-open Treasure Island at the Mirage.
 -- The 820-room Desert Inn, with a 17,000 square foot casino has consistently earned the Mobil Travel Guide and American Automobile Association prestigious Four Star and four Diamond ratings.
 -- At 7,000 yard championship golf course, nationally acclaimed as one of the finest and most exacting courses in the U.S., has served as host to several PGA and LPGA events.
 -- A 5.5 acre parcel and land in the center of the golf course which is zoned for a high rise tower or multi-unit condominium complex.
 -- The hotel includes an 18,000 square foot health spa considered to be one of the most complete in the Western United States.
 -- A 35 acre parcel of land, immediately adjacent to the existing hotel and casino with 885 feet of frontage on the Strip which is zoned for a 2,000 room hotel/casino which could be developed to target the casino market not currently served by the property at this time.
 ITT Sheraton has recently announced plans to build a Riverboat casino on the Mississippi, in Tunica County, MS. The company expects it to be operational in 1994.
 -0- 6/28/93
 /CONTACT: Jim Gallagher of ITT, 212-258-1261/
 (ITT)


CO: ITT Corporation; Tracinda Corporation ST: Nevada, New York IN: CNO SU: TNM

LG-LR -- NY055 -- 6430 06/28/93 17:00 EDT
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Date:Jun 28, 1993
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