Driesse, President of ITT’s Defense Business Will Succeed Robert L. Ayers

The company also announced that Steven F. Gaffney has been appointed President of ITT's defense business, succeeding Driesse. Gaffney currently heads the company's Systems division, the largest division in ITT's defense business. Both appointments will become effective on September 30.

"ITT's fluid technology and defense businesses are doing very well this year, and we see continued growth in these key areas for years to come," said Steve Loranger, Chairman, President and Chief Executive Officer of ITT Industries. "Earlier this year, Bob Ayers indicated to me his interest in stepping down and eventually retiring. After a series of discussions with Bob and the rest of the leadership team, we agreed that this is an appropriate time to implement our succession plan for Bob. Since Bob became President of Fluid Technology in 1999, he and his team have positioned ITT as the preeminent global leader in water and water treatment technology. Bob will be staying on in the role of special advisor for another year."

Loranger said that the performance of both Fluid Technology and Defense are the key reasons ITT continues to achieve strong results and why the company believes it is solidly on track to achieve its previously stated third quarter earnings guidance of $1.30 - $1.35 per share, setting a positive foundation for the rest of the year.

"We see enormous potential in our water and water treatment business, particularly in developing advanced technology and systems, and Hank Driesse shares this excitement about the global prospects in these markets. I know Hank and his team will position us to take this business to an even higher level," said Loranger. "Hank's leadership capability has been amply demonstrated by the significant growth and operational improvements we have seen in our Defense business in the last five years, in the U.S. and internationally, and across business units. I think he can bring that same level of strategic vision and operating discipline to this important new assignment."

"Hank has done an outstanding job in developing a strong cadre of management talent, and Steve Gaffney is well-positioned to lead our Defense business," said Loranger. "The Systems division has been growing dramatically under Steve's leadership. He has worked with his team to develop new areas of strategic focus for Systems, and they have enjoyed a steady stream of new contract wins in the last few years. Steve is a respected leader among his colleagues and I know he will do a great job leading our Defense business."

Prior to his current assignment, Driesse served as President of ITT Avionics Division, a world leader in the design, production and support of airborne electronic protection and communications, navigation and identification systems. Driesse began his career with ITT in 1981. His broad experience includes engineering, marketing, and program management positions with Singer-Kearfott and Bendix Corporation. He holds a Bachelor of Science degree in electrical engineering from Fairleigh Dickinson University and a Master of Science degree in electrical engineering from New York University.

Gaffney has served as President of ITT's Defense Systems Division since 2003. He joined ITT Industries in 1998 as Vice President and Director of Programs at ITT's Avionics division, and was named President of the Division in 2000. He was named corporate vice president and head of Value-Based Six Sigma in October 2002. Prior to joining ITT, Gaffney was Director of Litton Industries' Integrated Systems business in Woodland Hills, California, after serving in a similar role with AlliedSignal's Government Electronic Systems unit in Teterboro, New Jersey. He spent his early career with Smith Industries' aerospace and defense business in Florham Park, New Jersey. Gaffney holds a BS degree in Electrical Engineering from Lafayette College in Easton, Pennsylvania.