A q u a r t e r l y n e w s l e t t e r f o r a l l e m p l o y e e s o f I T T I n d u s t r i e s

Winter 1999/2000

contents

Summer 2000

Up Front

Travis Engen: Toward Internal Excellence . . . . . . . . . . . . . . . . . . . . .2Sharing Great Ideas: Best Practices Symposium . . . . . . . . . . . . . . . .5C&K to Make ITT Industries Number One in Switches . . . . . . . . . . .6Life Cycle Costing: Providing Long-Term Value to Pump Customers . .7Cannon Connectors Play Critical Role in Surgical Robotics . . . . . . . .9Top Executives Highlight Future Paths to Growth . . . . . . . . . . . . . .10Building Our Flygt Business in China . . . . . . . . . . . . . . . . . . . . . . .12

Lowara Sees Potential in Latin American Markets . . . . . . . . . . . . .13Innovative New Products from Gilfillan, Jabsco and Bell & Gossett .14Home “Smart” Home: Bringing Broadband to U.K. Residents . . . . .16“What the Geneen Award Means to Me” . . . . . . . . . . . . . . . . . . .18A Day in the Life of Mike Logsdon, Spaceport Systems . . . . . . . . .19Farewell to a Flygt Man . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

ITT Industries has never committedso many company resources to oneinitiative, but that’s because there’snever been an initiative that couldpromise so much in return. Here’s alook at the continuous improvementeffort that will leverage our knowledgebase and reshape the way we work.

Bob Poresky thought he had seen

and heard it all. A 20-year veteran of

Goulds Pumps, this senior staff

engineer has watched “countless”

continuous improvement programs

come and go at the Seneca Falls, New

York, plant. So he was as amazed as

everyone else when a two-hour

meeting in mid-March washed away

two decades worth of skepticism.

“It was a plant meeting to introduce

this new initiative called Value-Based

Six Sigma,” says Poresky. “Sitting there,

I went from apprehension to curious

excitement; by the end of the meeting,

I was pleased to be a part of it.”

Value-Based Six Sigma is a new

company-wide continuous

improvement effort that — according

to ITT Industries Chief Operating

Officer Lou Giuliano — is going to

continued on page 2…

Value-Based Six SigmaFull Speed Ahead

“This is the most significant

investment oftime, resources

and talent in anycorporate-wideinitiative in the

history of ourcompany.”

— Vince Fayad, Director, Value-Based Six Sigma

2

generate over $435 million in operating income between now

and 2003.

“We already have various continuous improvement initiatives in

place in most of the value centers,” says Giuliano. “We use flow

manufacturing, integrated product development, Taguchi methods,

Kaizen Blitzes and other tools. Many of them are excellent. But

the efforts are spotty, and overall, they aren’t having a big enough

impact. Going forward, Value-Based Six Sigma will be our

overarching approach to continuous improvement.”

What is it about Value-Based Six Sigma that is making true

believers of everyone from the COO to plant employees?

Process Improvements Must Have Financial BenefitFirst, as its name suggests, it is linked to the Value-Based

Management (VBM) principles ITT Industries has been using for

the last 18 months to determine how and where to invest

resources to generate the greatest real returns.

“The Six Sigma Problem-Solving tools and concepts that we will

use to drive out waste and increase growth build on the ones used

in the past with Total Quality Management (TQM) — measure,

analyze, improve and then put controls around your improvements

to make sure you are getting the desired results,” explains Vince

Fayad, who was chosen to head the Value-Based Six Sigma effort

for ITT Industries, based on past TQM work with Goulds Pumps

and Fluid Technology. “The big difference is that all improvement

efforts will now be tied directly to the overall business direction.”

With previous continuous improvement programs, says Fayad,

plants would look to solve any and all problems. Now, they’ll only

attack those problems that directly support the business goals. If

Toward Internal ExcellenceToward Internal Excellence

The commitment of substantial human andfinancial resources to our recently initiated,company-wide Value-Based Six Sigma

continuous improvement program is a clear signthat ITT Industries has entered a new phase in ourdrive toward becoming a premier, global, multi-industry company.

With four years of transition and restructuringlargely behind us, we are now a more maturecompany. We have chosen the businesses inwhich we want to participate. Now, it is time tofocus on providing the tools and training that willenable our people and our businesses to performat the highest levels.

ITT Industries has a strong and ongoingcommitment to increasing shareholder value. Ourgoal is to grow earnings each year through 2003by 14 to 16 percent, and revenues by 8 to 10percent. Half of that growth is expected to comefrom acquisitions, and half through existingoperations. To reach those goals, we need tobecome a total, high-performance organization— generating real breakthroughs in productivity,quality improvement, competitive advantage,product development and market expansion.Value-Based Six Sigma provides the roadmap wewill follow to achieve these breakthroughs on acompanywide scale.

Our goals are ambitious. With Value-Based SixSigma, we now have a program in place to matchthose goals — with the power and scope tocreate significant and far-reaching internalimprovements in all of our processes andfunctions.

Our acquisitions may get the headlines, but thefuture of ITT Industries rests on creating a solidinternal foundation based on operationalexcellence. Strengthening that foundation is ourhighest priority for the year 2000.

Travis EngenChairman and Chief Executive

Value-Ba…continued from front cover

VBSS Fact #1: It Works

ITT Industries selected Value-Based Six Sigma partly becauseit’s been proven to work. General Electric saw its operatingmargin — or profitability before taxes, interest and othercorporate expenses — jump from 10 percent to 16 percent justa few years after implementing Six Sigma. And Allied Signalestimates that Six Sigma principles have saved the companymore than $2 billion since the mid-1990s.

Studies of companies that have adopted Six Sigma showthat most black belts get returns of $180,000 to $250,000from each project that takes three to four months to complete.

3

VBM has determined that on-time delivery is one of the keys to

increasing operating income, the focus will be on eliminating

those problems that improve run rates and time-to-customer.

“Value-Based Six Sigma is based on the language of money,”

says Terry Wyrick, a Technical specialist for ITT Industries’

Cannon business. “That’s why it works and that’s why it’s going

to last.”

Dedicated TeamValue-Based Six Sigma differs from its predecessors in another

big way: people. When ITT Industries executives announced that

nearly 350 employees would be assigned to Value-Based Six Sigma

While Value-Based Six Sigma will help ITT Industries drivecosts out of the company, it’s not only about cost-cutting.”By getting more competitive in terms of quality and delivery,you automatically attract more business. Also, VBSS projectscan be targeted at improving product development processesand customer transaction processes, so VBSS absolutely canhelp grow the top line, too,” says Mike George, chairman ofthe George Group, the consulting firm that is facilitating ITT Industries’ worldwide VBSS deployment.

“I went from apprehension tocurious excitement, and by the

end of the meeting, I waspleased to be a part of it.”

— Bob Poresky, VBSS black belt, Goulds Pumps

sed Six Sigma“VBSS is based on the

language of money.That’s why it worksand that’s why it’s

going to last.”Terry Wyrick,

VBSS black belt, Cannon

“The company hasmade an investment to

take us to the nextlevel.”

Rosalind Walker-Lewis, VBSS black belt, A/CD

Continued on page 4…

VBSS Fact #2: It’s Not Just About Cutting Costs

full-time, it was a definite signal that the company

wasn’t in this half-way.

“This is the most significant investment of time,

resources and talent in any corporate-wide initiative

in the history of our company,” says Fayad.

The VBSS recruits fall into one of two roles —

champions or black belts. Forty champions will

conduct diagnostics at each value center to identify

improvement project opportunities, prioritize

projects and assign black belts to lead the projects.

The 300-plus black belts will lead teams of value

center employees and use statistical tools to push

toward higher quality, better customer service,

leaner production and faster product development.

Training and Leadership TracksTraining of the champions and 150 black belts

began in April and will continue in one- and two-

week blocks through the end of the summer.

Another 150 black belts will be trained in 2001.

Champions and black belts will each receive six to

seven weeks of intensive classroom training on

topics including Leadership, Six Sigma Problem

Solving, Lean Production, Product Development

and Diagnostics. Between classes, they will apply

the concepts to real training projects and training

diagnostics that will result in tangible financial

benefits for the value center.

In his first training session in Dallas, Texas, Don

Kephart, champion for the Industrial Pump Group

of Goulds Pumps, liked what he heard about VBSS’

“few-projects-at-a-time” philosophy.

“In the past, we have tended to launch many

projects at once and then find some time each day

to work on all of them,” Kephart says. “With Value-

Based Six Sigma, it’s all about focus and driving to

completion. We’ll work on a few projects at a time

and work on them until they are completed. This

focus will reduce the cycle time of improvement

projects, and we will reap the benefits earlier.”

Some of those chosen to lead this first wave of

VBSS had some initial concerns that the assignment

might derail their promising career tracks. “It

definitely pulls you out of your comfort zone,” says

Kephart. But very quickly, that’s given way to a

sense that VBSS will become a new leadership track

at ITT Industries.

In fact, at the Executive Forum in February,

Giuliano told the audience of company leaders that

he expected to see many former black belts and

champions at the Forum 10 years from now. It’s

a challenge they readily accept.

“The company has made an investment to take us

to the next level,” says Rosalind Walker-Lewis,

black belt for A/CD in Fort Wayne. “Now it’s up to

each of us to make it happen.”

“This is an exciting time for the company,” adds

Nancy Kenney, a black belt for ITT Industries

headquarters. “Something big is happening and we

are all part of it.” ■

“Something big ishappening and we are

all part of it.”

— Nancy Kenney, VBSS black belt,

ITT Industries headquarters

4

”Value-Based Six Sigma isn’t just about manufacturing moreefficiently,” says Nancy Kenney, a black belt for ITT Industriesheadquarters in White Plains, New York. ”It’s process oriented,and can be applied to all business functions, such as payrolland staffing.”

And Pierluigi Vidari, who is serving as champion for Lowarain Montecchio Maggiore, Italy, adds, “VBSS will become thecommon business language throughout ITT Industries, helpingus to share best practices internationally and promote acontinuous improvement mentality inside the entire company.”

Value-Based Six Sigma…continued from page 3

VBSS Fact #3: It’s Truly aCompany-Wide Effort

5

Good IdeasHere’s a look at the processesselected for presentation at the2000 Best Practices Symposium:

Customer SatisfactionCannon Switch Products: Technical Key

Account Focus. Partnered with high-growth

potential customer, becoming intimately

involved its operations and with the customer’s

customers, assuming the role of “technical

expert.”

Fluid Handling: e-Business System

Selling. Extended long-standing intensive

training program for customers to the Internet,

transitioning from “library” of technical

literature to interactive design tool.

Flygt: Reflex Automatic Quote System.

Developed in-house software to improve sales

through faster response, higher quality,

reduced paperwork and more consistent

customer follow-up.

Internal ProcessCannon Nogales: Human

Resources/Continuous Improvement.

Improved employee retention by addressing

compensation and training program.

Gilfillan: 3D Software Modeling.

Incorporated 3D Software Modeling to reduce

re-work and improve schedule performance.

Avionics and A/CD: Flexible

Manufacturing Process. Introduced flexible

manufacturing process that reduces cycle time

for new product releases and eliminates

manual-build prototyping.

Bell & Gossett: Concurrent New Product

Development. Used concurrent engineering,

systems engineering, electronic tools and

interorganizational tools to reduce product

time to market.

Galfer: Production Process

Transformation. Cured system bottleneck

through the development of new formulations

to change conventional curing, allowing in-line

process through an improved automation of

existing equipment.

Fluid Handling Systems: Focused Factory

Approach to Management. Adopted a

management system with operating decisions

made at the lowest possible level by a team of

subject experts, leaving plant management to

focus on customer relationships.

Supply Chain PartnershipCannon/Network Systems & Services:

Supply Chain e-Procurement. Reduced

inventory, improved lead time and enhanced

customer response through e-procurement

system with suppliers.

Cannon Connectors North America:

Strategic Sourcing. Worked closely with

suppliers to leverage purchasing strength,

reduce cost of purchased materials, and

improve quality and delivery performance.

Goulds’ Industrial Pump Group: Motor

Purchase Consortium. Combined and

consolidated various supplier agreements into

a single contract, applicable to every global

location regardless of volume, driving down

price despite decreasing volume.

2000 BestPracticesSymposium

!•

The meeting was all about sharing good ideas, lettingthem leap the business and geographic boundaries thatcan often divide ITT Industries.

“Every day that a better idea goes unused is alost opportunity. We have to share more and wehave to share faster.”

With those words, Lou Giuliano, Presidentand Chief Operating Officer of ITT Industries,kicked off the company’s first annual BestPractices Symposium. For three days in mid-May,representatives from a dozen value centers wereon hand to share their best business processes— chosen from 76 nominations — with anaudience that included ITT Industries businessleaders and Value-Based Six Sigma “champions”(see cover story).

These processes most closely matched ITTIndustries’ three criteria for a “best practice”:value creation, transferability across theorganization and formal documentation.

By sharing these best practices, ITT Industriesmultiplied the impact of the stand-aloneprocesses. Without the Symposium, many ofthese good ideas would never have been sharedwith other ITT Industries units.

“This is part of the Value-Based Six Sigmaeffort,” says Vince Fayad, who is directing theinitiative. “We are asking our businesses tomeasure, analyze, improve and control theirbusiness processes. The Symposium acceleratesthe improvement process, allowing businesses toborrow or build on good ideas that they mightotherwise not be aware of.” ■

Yes, TheyKanban!During the Best PracticesSymposium, all 130 participantstook a boat ride from Boston toGloucestor to see a best practicein action at Rule Industries. Withits kanban approach to inventorycontrol — featuring a signalsystem to indicate when it’s timeto re-order supplies — Rule hasreduced on-site inventory from 49days to two days. Here, BobCoolong from Montec Plastics, amajor supplier for Rule, and ElaineLee, senior buyer for Rule, explainthe supplier’s role in the kanbansystem and how well it hasworked for Montec. “The nextday, the group gave us a standingovation for the presentation,”says John Kemp, general manager,Rule Industries.

6

ITT Industries is “turned on” by opportunities in the rapidly growing switch business. So much so that the company is set to become the world leader inelectromechanical switches.

Building on the strong recent upswing in its Cannon connectors and switches business, ITTIndustries has announced it will purchase C&K Components of Watertown, Massachusetts,which designs and manufactures a broad line of branded switches for the fast-growingtelecommunications, computer and electronic equipment markets.

C&K will add about $100 million in annual sales, enabling overall Cannon revenues toapproach the $750 million mark this year on a pro forma (or full year) basis.

The $117 million acquisition, which is expected to be completed in early summer pendingregulatory approvals and closing conditions, will make ITT Industries the world’s largestsupplier in the $3.4 billion worldwide switch market.

C&K has been a privately held company since its founding in 1957, specializing in toggle,rocker, push button, switchlock, snap-action and slide switches. It has a record of solid financialperformance and is expected to begin contributing to ITT Industries’ earnings next year.

“The acquisition of C&K is consistent with our strategy of expanding our footprint in higher-growth, profitable markets,” said ITT Industries Chairman and Chief Executive Travis Engen.“We have been growing rapidly in the worldwide switch market, most notably last yearthrough our acquisition of San Teh’s keypad business. C&K now elevates us to a leadershipposition in this arena.”

C&K fits superbly with ITT Industries’ existing connectors and switches business, saysCannon President Gerry Gendron.

“The acquisition increases our global reach, broadens our product portfolio and creates newmarketing opportunities,” Gendron notes. “Cannon’s switch sales are currently strongest inEurope and Asia Pacific, while C&K’s sales are primarily in North America, where it also enjoysthe number one or two position with three of the top five distributors. Cannon has a greattrack record of providing innovative, custom switch solutions in such high-growth areas asmobile phone handsets, while C&K makes a broad line of switches. Now, customers will beable to rely on us as the strongest source for both needs.”

With the addition of C&K, Cannon will have products to serve approximately 80 percent ofthe worldwide switch market. And C&K’s strong distribution channels provide opportunities tomerchandise a wide array of existing Cannon products. ■

Cannon Business Continues to Grow

C&K Acquisition to Make ITT Industries World’sBiggest Switch Manufacturer

Acq

uis

itio

ns

C&K has approximately 1,300 employees worldwide, with

manufacturing facilities in Newton,Massachusetts; Kettering, UK, and

San Jose, Costa Rica.

Life Cycle CostingWith Life Cycle Costing (LCC), customers would make buying decisions based on long-term energy, operations and maintenance costs — not just the initial purchase price. Inthat environment, ITT Industries’ pumps would prevail more often.

If the term Life Cycle Costing isn’t familiar to you, the concept should be. You use it every time

you buy a car — looking past the price tag to the true cost of the car over its life. When you factor resale

value, gas mileage and maintenance projections into your buying decision, you’re practicing Life Cycle Costing.

But LCC — by name or by practice — isn’t always widely embraced in the business sector. That’s

especially true for U.S. pump customers, who regularly revert to a price-first mentality, instead of using LCC

to predict the total cost of ownership. (In Europe, high energy costs have made customers more willing to

embrace the LCC concept.)

“These customers intuitively believe in LCC, but they have to write a check today, and that immediate

price penalty sometimes overrides the long-term cost savings,” says Barry Erickson, vice president of

Technology for Goulds Pumps’ Industrial Pump Group.

Overcoming Short-Term ThinkingTo promote the value of LCC — and, in tandem,

the long-term value of their energy-saving, low-

maintenance products and systems — ITT

Industries’ pumps companies have embarked

on an awareness-raising campaign.

This LCC education process begins at

home.

“We’re used to making and selling pumps as

stand-alone products. But we need to educate our

people to become more systems-oriented, providing

total solutions to customers,” says Gunnar Hovstadius,

Director, Technology, for ITT Industries Fluid Technology

business. “It’s not easy, but the shift has already begun.”

Pu

rsu

ing

In

no

vati

on

7

True Cost

Purchase+ Energy+Maintenance+ Operations

Continued on page 8… When

customers

understand

“true cost,”

ITT Industries

wins.

8

True enough, some ITT Industries companies have

already made a leap toward LCC:

• Bell & Gossett’s Package System Group evaluates

customers’ heat or air conditioning needs and

creates pump systems to optimize energy and

operations costs.

• With its clog-resistant, energy-efficient N-Pump,

Flygt can promise customers substantial energy

savings and a decrease in maintenance

expenditures. Savings as high as 40-50 percent

have been achieved.

• Goulds’ PumpSmart™ process control system —

which adjusts the pump speed to take advantage of

off-peak electricity rates and shuts it down

completely when the flow drops to below-

minimum levels — not only lowers energy costs by

up to 40-50 percent, but also reduces installation

and repair costs.

To create customer buy-in for their systems, these

companies have created LCC education tools. To

support PumpSmart, for example, Goulds has

developed a software package that allows customers

to do a comparison of purchase, installation,

operation and maintenance costs for a system withPumpSmart and one without.

Taking the Message to the TopRevealingly, this software package is not aimed at

process engineers, equipment engineers or other

traditional plant-level customers for Goulds Pumps

products.

“They aren’t the ones who need to be sold on

LCC. Instead, it’s the chief operating officer or plant

manager — someone who has the bigger picture in

their head and can see the true value of LCC,” says

Erickson.

With high-profile positions on two of the biggest

industry organizations — U.S.-based Hydraulic

Institute (HI) and Europe-based EuroPump —

company representatives are also spearheading an

effort to develop industry-wide LCC standards that

will make it easier for customers to compare

competitor Life Cycle Costing claims and make

informed purchasing decisions.

“We expect a joint HI and EuroPump document to

be ratified in Fall 2000,” says Stefan Abelin, manager

of Systems Engineering for Flygt U.S. “In the

meantime, we will be incorporating LCC language

into our manuals and marketing materials to pique

interest.”

The ultimate goal is to convince companies to

adjust their internal purchasing systems to consider

total cost of ownership, instead of simply defaulting

to the lowest bidder. But what happens when the

customer is a municipality that has a federal mandate

to buy equipment at the lowest costs?

The government — through the Department of

Energy — is represented in the HI working group on

Life Cycle Costing, and they have made it clear that

they are interested in changing the rules, reports

Hovstadius, who chairs the group.

“We’re also doing some lobbying in Washington,

D.C.,” says Abelin. “There is some interest already,

especially in California, of rethinking the low bidder

policy.”

In the end, LCC fits perfectly with ITT Industries’

growth goals.

“Our operating companies have been asked to seek

growth in ways other than acquisitions,” says Chris

Latham, director, Business Development for Fluid

Technology. “LCC helps us differentiate ourselves

from the competition and sell value. There’s no

question that it will drive top-line growth.” ■

Life Cycle Costing …continued from page 7

Above: Gunnar Hovstadius points to PumpSmartTM — which lowersenergy, installation and repair costs for customers — as an exampleof ITT Industries’ move to more systems-oriented solutions.

9

“Cannon has a heritage inmedical applicationsbecause our connectors

have been performing reliably inultrasound equipment since 1990,and we now enjoy market share of85 percent,” says Murtaza Fidaali,Marketing manager, IndustrialMarket, Cannon in the Americas.“We’re building on our success bymoving into different medicalmarkets with the same connector.”

Designed to Take a BeatingSurgical robotics is a newly

developing segment of the medicalmarket that Cannon has penetratedas it continues its success servingultrasound equipment manufacturers.Cannon has been a pioneer in thisfield since 1996, working withcompanies such as Intuitive Surgical,Inc., Integrated Surgical Systems andComputer Motion. Collaborating withthese customers, Cannon ProductDesign Specialist Jim Mooredeveloped a version of the DL ZIFconnector that is particularly suitedto the needs of today’s medicalindustry. This design enhanced the

connector’s protection againstelectro-magnetic and radio frequencyinterference by providing exceptionalshielding. This enables the connectorsto reliably transfer the surgicalsystems’ high-fidelity digital signalseven while being subjected to thewear-and-tear caused by the constantassembling and disassembling of thesystems.

“Our zero-insertion forceconnectors are guaranteed for adependable 10,000 cycles, minimum— with no signal degradation,”Moore says. “The connectors are acritical interface to maintain the flowof information needed to perform thesurgery, and are integral to asuccessful surgical outcome.”

Thirty of Cannon’s DL ZIFconnectors are used on IntuitiveSurgical’s da Vinci system, whichperforms minimally invasive heartsurgery.

Like “Operating in Air”“The da Vinci creates three small

punctures between the patient’s ribsand sends in probes — one with avideo and lights and two with endo-

factors or “finger-like” devices. Thevideo camera sends back pictures to amonitor that the surgeon uses toprecisely manipulate the endo-factorsand perform the surgery,” Mooresays. “All of these parts — input unit,video monitors, robot arms, endo-factors — are modular and need tobe connected. They’re connected withthe DL ZIF.”

Another computer-enhancedsurgical system that uses the DL ZIFconnector is a hip-drilling machinedeveloped by a major medicalequipment manufacturer. Surgeriesperformed by this machine arereducing hospital costs by as much as30 percent, Fidaali says.

Estimating the entire market formedical connectors at $400 million,Fidaali says it’s growing at an annualrate of 7 percent.

“Robotic surgery is very new, sothere are no specifics on where themarket will go, but there are manydifferent procedures that it may beused in,” he says. “Our plan is to lookat the market and identify the topplayers and then approach them withour product.” ■

ITT Industries’ “Engineered for life” tagline has taken on an even deeper meaning forCannon’s DL zero-insertion force (ZIF) connector. The engineering of this product,which is being built-in to several computer-enhanced surgical systems, isinstrumental in saving the lives of patients undergoing operations.

Saving LivesCannon DL ZIF connectors are critical to robotic surgical systems

Saving LivesCannon DL ZIF connectors are critical to robotic surgical systems

Cannon Product DesignSpecialist Jim Mooredeveloped a version of the DL ZIF to enable the 30connectors on the da Vincisystem to reliably transferhigh-fidelity digital signals.

On

e-o

n-O

ne

10

The primary pillarsof ITT Industries’growth strategy areacquisitions, Value-

Based Six Sigma andnew product development.

But when company executives met this yearfor the annual Executive Forum, they outlined a

number of other ways ITT Industries will grow in the future.Here are a few of their insights:

What Will Drive Grow

E-business and the InternetDavid Anderson (Chief Financial

Officer): A number of our

businesses already have strong

websites. The Bell & Gossett

site, for example, allows

customers to select the best

pump for a specific application,

quotes the price and provides a

drawing of the installation.

For ITT Industries as a whole, we have a window

of about 12 to 18 months to get our act together and

know exactly where we want to go in terms of

developing our e-business capabilities.

We expect e-business to benefit ITT Industries in

the area of top-line growth. These gains will come

through market expansion (cost effectively reaching

new customers we’ve never reached before),

increased customer intimacy and greater business

agility. We can also use e-business to achieve cost

reductions in areas such as product development

and procurement.

Robert Ayers (President, Pumps & Complementary

Products): We see information to the customer as

really the means to differentiate ourselves

competitively. Today, we are recognized as the

world’s leader in information to our industry and our

customer base. In 1999, we had over 400,000 visits

to our web sites within the Fluid Technology group.

In addition to that, we’ve had over a million hits.

They’re not just coming in to see what the web site is

like, but they’re also penetrating down into the Web

site to get the information that they desire. We see it

as a tremendous opportunity for the future.

e-Business Now Has an e-Boss ITT Industries’ corporate-widecommitment to e-business got a big boost with the recent appointment of Mark Goetze to the newlycreated position of director of e-business. In his role, the former Cannon e-business leader willspearhead ITT Industries’ efforts to identify and structure electronic commerce opportunities — bothbusiness-to-business and business-to-consumer.

Private LabelingGerry Gendron (President,

Connectors & Switches): We’re

looking to increase our private

labeling opportunities. Private

labeling means we go out to

other suppliers that have a

product that we don’t offer, buy it

from them, put our name on it and offer

it to the marketplace. Two years ago, we set up a

Procurement Services Groups (PSG) in Taiwan. The

intent of that group is to locate a low cost supply base

primarily in Taiwan and also in China that we will

bring to market through our existing channels in

Europe, North America and to some extent in the Asia

Pacific. It allows us to grow the breadth of our

product offerings more quickly than an internal

development process. And it also gives us access to a

low-cost supply base.

New Markets: SpaceMarv Sambur (President,

Defense Products & Services):

Commercial remote sensing

from space satellites is an area

that is growing from a few

hundred million dollars a year

in revenues to nearly five billion

dollars a year by 2005. With our

vast experience in supplying the remote sensing and

surveillance payloads for National Oceanic and

Atmospheric Administration (NOAA) and the U.S.

government, and our equity positions in EarthWatch

and Resource 21(remote sensing dedicated to

agriculture), we are in an excellent position to

capture a large portion of this growing market.

New Markets: EnvironmentalInfrastructure

Robert Ayers: The leading

environmental agencies

throughout the world estimate

that over the next 15 years

roughly a trillion dollars should

be spent just to bring the major

cities of today into compliance

with waste water standards and

specifications. Historically, we know that this isn’t

going to happen. We estimate that 20-30 percent of

those monies will be spent by the governments and

municipalities. When you take that and you boil it

down to what the opportunities are for ITT Industries,

we’re looking at a market of somewhere between $300

and $500 million of annual growth. There is a

tremendous opportunity for us to assist in the cleanup

of the environment, as well as the economic capabilities

that it represents to ITT Industries.

Our EmployeesRichard Hamilton (President,

Specialty Products): Motivated and

enthusiastic employees are a real

driving force behind getting

satisfied and loyal customers. And

we’re making an investment in our

managers because experienced

managers are also a driving force for

identifying acquisitions and successfully integrating

them. Bottom line: our success comes down to our

people. ■

ITT Industries’ th in the Future?

11

“We see growth opportunities in this area, and Mark — who has hands-on experience in enabling an e-commerce model in a global operating environment — is the best person to implement specific e-business initiatives,” says Travis Engen, Chairman and Chief Executive of ITT Industries.

12

Glo

bal

Gro

wth

Flygt China recently received its largest pump

order ever — $1.05 million — for a complete submersible

pump/mixer package to be installed in a sewage treatment

plant for the city of Zheng Zhou in the province of Henan.

This is the first sewage treatment plant for Zheng Zhou,

which has a population of over 2 million. According to

Peter Mui, Contract and Application Department manager,

Flygt China, in many ways, this project is a preview of

things to come for China and Flygt China.

Is China increasing its investment inenvironmental infrastructure?

Yes. China is very ambitious on the environmental issue.

The official target is to allocate 2-3 percent of Gross

Domestic Product (GDP) for investment in environmental improvements, but the local authorities will have

to raise a certain percentage of this by themselves. The actual investments will vary from province to

province. For example, ShanXi province announced it will use 10 percent of its GDP for environmental

improvement.

What’s driving this growing investment?With the World Trade Organization issue ahead, a fast-improving living standard and an increase in

foreign contracts, China is under strong pressure from within and from neighboring countries to improve

its environment.

Can you describe the state of waste water treatment today in China?Most major cities are without any municipal waste water treatment, and only industrial waste water is

being treated. Take Shanghai, for example. The estimated waste water volume is 5.7 million cubic meters

per day, but the sewage treatment capacity for secondary treatment is less than 10 percent.

How is Flygt China positioned to take advantage of this growth market?We started as a joint venture in early 1995 and became 100 percent owned by ITT Industries by the end

of 1996. We have a production plant in Shenyang Liaoning province and a Sales and Marketing office

located in Shanghai.

Being located in China is very important. It is not easy doing business in China. Personal trust is the most

important factor. Unlike other countries, where most communication is through phone and fax, most

business discussions and negotiations in China have to be done face to face. Most of the time, important

messages are passed during dinner or after office hours in informal meetings.

Another key factor in our success is the reputation of ITT Industries. Flygt is well known for our quality

products and our reliability. Our professional pre-sales and sales services also win a lot of confidence from

our clients.

Why is the Zheng Zhou contract important?This order represents another vital step in positioning Flygt China as the “fluid handling partner” in the

Chinese market. Our service and product performance at Zheng Zhou will play an important role for

future projects. ■

Flygt China

Building a Strong BusinessFoundation in China

Peter Mui saysFlygt’s largeZheng Zhou

pump order is a preview of

things to comein China.

As part of an initiative to grow its Latin American pump business by more than 30 percent in the nextyear, Lowara recently welcomed company sales

representatives and key distributors from seven countries for a week of training and plant visits in Italy. The group also attended Italy’s largest water pump exhibition, MostraCovegno in Milan, where Lowara products were wellrepresented.

“There is an excellent market opportunity in Latin Americafor a variety of Lowara products, including borehole pumps for residential water supply and irrigation, vertical multistagepumps for water boosting, inline pumps for heating systems and stainless steel end-suction pumps for industrialapplications,” says Paolo Milan, Lowara area manager for LatinAmerica. “The distributor from Chile was so impressed with thequality and technology he saw here that he dropped his currentline of borehole units and placed his first order with Lowara.”

Lowara has recently been strengthening its sales effort inLatin America, adding company representatives and creatingties with independent distributors as part of its business-building initiative.

“We organized this visit because it’s important that oursalespeople and distributors have clear knowledge of thecapabilities of our facilities, and how Lowara products can bebest used to help our customers,” says Jorge Alvarado, vicepresident for Commercial Products, Latin America. “Anothermajor benefit was getting to meet and know the Lowarapeople in Italy that we work with on an everyday basis.” ■

Visitors to Italian Facilities Are Impressed:

Lowara TargetsLatin AmericaGrowth

13

ESH

Lea

der

shipWater News

Putting Water on the Air. In itscontinuing effort to raise awareness of thepotential water problems facing the worldin the 21st century, ITT Industries, alongwith Heineken, is sponsoring a 13-parttelevision series called “Water — the Dropof Life.” The fascinating series — eachsegment is dedicated to a different aspectof water — has already begunbroadcasting in parts of Europe and willdebut in the U.S. in September.

Water Prize Winner Named. ProfessorKader Asmal is the newly named winner ofthe 2000 Stockholm Water Prize —founded and supported by ITT Industries.From 1994 to 1998, when he was Ministerof Water Affairs and Forestry in SouthAfrica, Professor Asmal pushed through aNational Water Bill that helped 8 millionSouth Africans gain access to safe drinkingwater. His program included innovativeideas, such as the formation of a “waterreserve” for basic human needs, theabolishment of property rights in regardsto water, and the “feminization” of watermanagement.

“In South Africa, he changed the waterequation from ‘all for some’ to ‘some forall,’” says Bjorn von Euler, director ofCorporate Communications for FluidTechnology. “His ideas have currencyaround the world.” ■

Water Prize winner Professor Kader Asmal (right)recently met in Washington, D.C., with Bjorn vonEuler, director of Corporate Communications forITT Industries’ Fluid Technology business.

Luigi Manago of Lowara (far right) describes to Latin American visitors how the company’s borehole pumps are made.

14

Eng

inee

rin

g E

xcel

len

ce

New ProductsA “Quantum Leap” Forward:Gilfillan Upgrades Key U.S.Navy Radar

In early 1998, engineers from ITT Industries’

Gilfillan business approached the U.S. Navy with a

proposal to improve the reliability, maintainability

and stability of the Gilfillan AN/SPS-48E radar

system that forms a key part of the air defense

system on the Navy’s aircraft carriers and

amphibious assault ships.

The essential idea was to replace existing tube

technology with high-performance solid-state

amplifier modules that are smaller, have fewer

parts, and can better detect targets in so-called

“high-clutter” environments encountered by the

Navy at sea and/or near coastal areas.

The Navy liked the proposal, but funded the

program with strict conditions.

“It was a fixed-price R&D program, with a two-

year timetable for completion,” says William

Ratner, director, Air Defense Systems, Gilfillan. “To

meet this challenge, we used new robust design

methods and an interlocking team approach that

included active participation by the customer.”

With the Navy providing ongoing technical input

and continual feedback, development of the solid-

state product moved ahead quickly.

“Having a Navy representative on board who was

able to see the project from the customer’s

perspective really kept the program on track,” says

Project Engineer Errol Root.

“We were able to make steady progress, with no

backward steps. We came in two months ahead of

schedule,” adds Ratner. “The final product

exceeded all specifications, and by wide margins.

The solid-state system represents a quantum leap in

performance over the tube technology.”

The Navy will now decide on how and where the

improved AN/SPS-48E will be deployed.

“The results we achieved will benefit both the

Navy and Gilfillan,” concludes Ratner. “Many of

the process and product advances achieved on this

project will be transferable to future programs,

including international radar sales and

improvements to existing U.S. Navy AN/SPS-48E

radar installations.”

Jabsco’s New “Quiet Flush”Marine Toilet Makes ItselfHeard in Marketplace

About 35 years ago, Jabsco made a significant

contribution to pleasure boating when it introduced

a truly revolutionary innovation — the electric

marine toilet.

Simple, reliable and trouble-free, the Jabsco

electric toilet consistently won high marks from

customers, except for one small complaint.

“They would ask if there was anything we could

do to quiet the darn thing down,” says Bob

Simonson, Marine Market specialist at Jabsco.

“They said the toilet made enough noise to awaken

everyone on-board — and it also woke up people

on boats berthed nearby.”

Jabsco engineers attacked the noise problem by

eliminating the self-priming flexible impeller pump

that brought in the sea or lake water that rinsed

the bowl.

Above:AN/SPS-48Eradars help

protect U.S.aircraft carriersfrom air attack.

In 1999, ITT Industries launched the greatest number of new products in companyhistory. Innovative new products are a big part of the company’s growth story, as theseexamples attest:

15

“It was the flexible impeller blades snapping off

the cam that made the toilet noisy,” says Simonson.

The new Quiet Flush toilets are designed to

receive rinse water from either an existing on-board

pressurized water system (such as the vessel’s

potable water system), or from the sea or lake

through a quiet-operating diaphragm pump that is

supplied with the toilet. Either way, users of the

Quiet Flush toilet no longer have to worry about

waking people in the middle of the night.

The Quiet Flush also has other user-friendly

features, including single push-button operation,

and the ability to control the water level in the

bowl (very helpful in rough seas).

“We introduced the Quiet Flush to both the

OEM and replacement market in 1998,” says

Simonson. “We doubled sales in 1999, and this year

we think we’ll be up another 25 percent. It’s

proven to be a winning product, especially in terms

of taking business away from our biggest

competitor.”

This spring and summer, more boat owners will

be learning about Quiet Flush through eight self-

contained and fully operational in-store displays

that will be sent around the U.S. to demonstrate the

product. Each display will stay in a retail store that

sells marine supplies for three or four weeks before

being shipped to the next location.

Bell & Gossett Sees WiderMarket for Motor RotationDetector

When Bell & Gossett was looking for a better way

to test the thousands of small water circulation

pumps manufactured each week at its Morton

Grove, Illinois, plant, the company

turned to Mark Aler and James Gu.

“Every day, a few pumps

were failing the quality

check because

they were miswired so that the motor spun

backwards. But because we had no simple way to

test for that, the pumps went into the ‘bad’ bin for

rework,” says Aler, Chief Product Engineer for the

Packaged Systems Group. “In 1997, we came up

with a bench test that senses the magnetic field of

an enclosed, energized motor and identifies the

rotational direction within seconds. Once we knew

a motor was wired incorrectly, it was a simple fix,

saving a lot of costly troubleshooting and rework.”

Quality went up. Rejected pumps and costs went

down. Everybody was happy. End of story.

Not quite.

“We had a nice little internal application, but

then we realized that if we could put this tester into

an easy-to-use handheld unit, we’d have a valuable

tool for anyone who ever has to check an enclosed

motor,” says Aler.

With the support of Bell & Gossett, Aler and

Senior Product Engineer Gu developed a compact,

microprocessor-based version of their bench test

and applied for a patent for the Handheld Motor

Rotation Detector. Recently, Bell & Gossett began

to market the device directly through its own sales

channels, and is currently in discussions with a

leading distributor of maintenance products to

reach an even broader marketplace.

“We like to compare our invention to the ‘stud

sensor’ that detects where the studs are located

behind a wall,” says Aler. “It has the potential to be

a ‘toolbox’ item selling for about $50.” ■

Below: James Gu (left) and Mark Aler, with theirinvention, the Handheld Motor Rotation Detector.

16

Most businesses start with smaller customers and then moveon to handle larger projects. ITT Industries’ U.K.-basedNetwork Systems and Services (NS&S) unit is doing it the

other way around.After nearly a decade of building its reputation for providing

complex, highly-reliable structured cabling solutions that form the“backbone” of many major companies’ internal communicationsnetworks, NS&S has entered the residential market.

“Our Midi-LAN product takes core NS&S technology and uses iton a smaller scale to bring broadband capabilities into the homethrough a complete system solution,” says John McLaren, Midi-LAN Business manager. “It’s based on the LANConnect platformof unshielded twisted pair (UTP) and coax cabling, combinedwith the Cannon 808 connector.”

Customized to Homeowner’s NeedsEssentially the same technology that NS&S uses in designing

and installing “mission critical” internal networks for major banksand financial institutions is now being built into homes and evenapartments. Homeowners choose which services — Internet,cable, satellite, phone, home security, audio system — they wantconnected to Midi-LAN. The chosen services are run through

smaller versions of network hubs, and special modules are installed in a central controlcabinet. These modules then distribute the services to the outlets in various rooms of the house.

One of the modules homeowners can choose is a security module that hooks interior and exterior CCTVcameras into Midi-LAN for monitoring criminal activity, keeping tabs on a sleeping baby, or making sure the kidsare doing their homework. The output from these cameras is then viewed on televisions or computer monitors.

The security module also has applications in the small business and home business markets, where businessowners may want to monitor their office space or the home space surrounding their office. “With Midi-LAN,your home office can effectively become an extension of your work office, with built-in phone and Internetaccess,” McLaren says. And, for home workers who need to travel on business, future plans call for Midi-LAN tohave remote Internet access.

Standard New Home TechnologyAlthough Midi-LAN’s technology was only introduced to the U.K.’s residential market in 1999, many

developers are now marketing the product to new homebuyers. “Most of today’s new homebuyers are ITliterate and expect this kind of technology,” McLaren says. “It’s becoming standard in new homes, adding just 1or 2 percent to the home’s cost.” Midi-LAN can also be retrofitted for older homes.

The potential market for home networks is expected to grow worldwide to more than 20 million residencesby 2005. Currently, NS&S has the dominant share of the market, with 1,000 systems installed in the U.K. It is inthe process of introducing Midi-LAN to other European markets, and plans to roll the product out to the UnitedStates in the next few months.

“Nobody else offers the total home solution,” McLaren says, adding that NS&S has set up strategicpartnerships with service providers to enable it to offer a complete home-networking package. Thesepartnerships, along with expansion into new geographic markets, are expected to result in a significant increasein Midi-LAN’s sales in 2000. ■

News From The U.K.

Home “Smart” HomeWith Midi-LAN, NS&S Brings Structured Cabling Solutions To The Residential MarketM

eeti

ng

Mar

ket

Nee

ds

17

New Capabilities Help Systems Win $74Million Contract. ITT Industries’ Systems Division

will design, engineer, furnish, install and sustain a

voice/data communications system supporting American

forces in the Balkan region. The contribution of defense

and space communications business recently acquired

from Stanford Telecommunications, combined with

unique Systems division capabilities, were key to winning

this project.

ITT Industries to Buy European Piece of Hydro Air. Complementing its 1999 acquisition of

U.S.-based Hydro Air Industries, ITT Industries

announced an agreement to purchase Hydro Air

International A/S, headquartered in Denmark. In addition

to distributing whirlpool products from the U.S. Hydro

Air business, the European unit manufactures electronic

controls, pumps, blowers and heaters for the jetted tub

and whirlpool markets.

A Public Pledge to Clean Water. [first photo]

As part of the CEO panel at the Second World Water

Forum and Ministerial Conference, held in March in

Haag, The Netherlands, ITT Industries and 10 other

international companies acknowledged their commitment

to helping find solutions to clean water and sanitation

through, among other actions, improving water

distribution efficiency and irrigation water management,

pursuing product innovation and raising public awareness.

Avionics and Gilfillan Earn MarketEngineering Awards. ITT Industries’ Avionics

division was honored for continuously exceeding

customers’ expectations and Gilfillan for its innovative

and competitive line of radars in the 2000 Frost &

Sullivan Market Engineering Awards. The prestigious

awards recognize the “diligence, perseverance and

dedication required to develop a successful business

plan and excel in the increasingly competitive global

marketplace.”

DePalma Elected to HI Board. Pasquale (Pat)

DePalma, the head of the Commercial Products Group

for ITT Industries’ Fluid Technology business, has been

elected to the Hydraulic Institute’s 2000-2001 Board of

Directors. The 83-year-old Institute provides product

standards and improves understanding between pump

users, contractors and manufacturers.

Romania and Canada Choose GilfillanRadars. [last photo] Continuing its expansion into the

newly opened Eastern and Central European markets,

Gilfillan sold a GCA-2000 transportable radar system to

the Romanian Air Force. In addition, Computing Devices

Canada Ltd. purchased three mobile GCA-2000 radar

systems to support the worldwide deployment of

Canadian forces.

Joint Strike Fighter: Command Voice Getsthe Call. Boeing and BAE Systems have selected A/CD’s

Command Voice!™ voice control system for their next-

generation strike aircraft, to be used by the U.S. Air

Force, Navy and Marine Corps. In loud noise combat

environments, Command Voice! is 20 times more

accurate in recognizing pilot commands than commercial

speech systems.

Flygt France Turns the Big 4-0. [middle photo]

Founded in 1960, Flygt France celebrated its 40th

anniversary on March 24, with a huge party for all

employees at the Musée des Arts Forains in Paris. Keeping

with the theme of “looking back,” long-time employees

were honored and attendees got to experience firsthand

inventions from the 19th and early 20th centuries.

Another Big Sale for SINCGARS. The U.S.

Army has awarded A/CD a contract for the advanced

version of its Single Channel Ground and Airborne Radio

System (SINCGARS). The exact number of radios, spare

parts and radio test sets is still to be determined, but the

award has an initial value of $25 million with a

maximum value of approximately $250 million. ■

Etc... Awards, Acquisitions and Assorted News from Around ITT Industries

New

s B

rief

s

18

“What Winning the

Geneen AwardMeans to Me”

The Harold S. Geneen Award is the highest honor that ITT Industries can bestow on

an employee. Recently, In Our Hands asked several of this year’s honorees to share

their feelings about the Award and what winning it has meant in their lives.

You

r Tu

rn

Olivier Duperray, Vice Presidentand President Director General,Cannon Switch Products(Unique Team Achievement)

“One of the most rewarding aspects of winning the

Geneen Award has been the recognitionthat we have received from our management and

colleagues. It is particularly satisfying to be viewed

by our peers as ‘Best in Class.’ The Award has also

reinforced the value of our contribution to ITT

Industries. It is a point of encouragement to me and

our team to continue our efforts to improve our

organization in order to ensure that we are able to

deliver high performance in the future.”

Willy Semmelroggen, Business Director, Panel Switch AssemblyCannon Switch Products(Unique Team Achievement)

“The first overwhelming feeling was pride,

followed by gratitude. This very special award

means recognition for effort, for engagement, and

for every extra hour of time we put in during the

week and on weekends. The fact that our

achievement has been noticed all the way up to the

CEO of the company has done a great deal for team

spirit and, above all, the award has proven that

teamwork can create big successes when team

members put forth their best ideas and efforts.”

Peter Steensma, Director, Advanced Systems Strategies, A/CD(Individual Achievement)

“It is a bit embarrassing to receive an award for

individual achievement. I really do not think of

myself as an individual achiever. Mostly, I generate

sparks or recognize connections, and it takes other

people to turn it into the sort of success that is

recognized in this award. In truth, this award

recognizes their success as much as my own.

At the award ceremony, it was particularly delightful

to get to know the other recipients and co-workers

from so many other countries. We are still part of an

international community at ITT Industries.”

Jeremiah J. Needham, Site Engineer Support Manager, A/CD (Individual Award forCommunity Service)

“In being honored with the Geneen Community

Service Award, I received accolades for

accomplishments that are already self-rewarding. At

the same time, winning the award has given me new

opportunities to speak to the issue of

community needs. The needs are there, in every

community, in every neighborhood. Just a small

investment of time and talents from each of us can

provide an incredible return. Helping others is

contagious and it’s something we all need to catch.”

Dr. Gary Paderewski, PHI Team, Advanced Engineering & Sciences Division(Unique Team Achievement)

“During 1999, both Theater Missile Defense

programs achieved their first intercepts of flight

targets. Every one of these targets incorporated our

PHI sensor system and proved successful. Thus,

seven long years in which even our own customers

expressed doubts that these measurements could be

accomplished came to satisfying closure. The

Geneen Award became a symbol for us both of our

own achievements and of our vindicationwithin the defense contractor community. It also

signifies recognition from our peers that we have

made a valid contribution toward ITT Industries’

reputation in the defense community.”

19

When it’s time to process a satellite for launch at Spaceport Systems International (SSI),Mike Logsdon conducts the standard 10 ... 9 ... 8 ... 7 ... countdown. But his numbers represent weeks, not seconds.

Three months prior to the arrival of a satellite, Logsdon and his SSI co-workers in the Integrated Payload ProcessingFacility (IPF) begin checking and re-checking every piece of equipmentthat allow for the successfulprocessing of the scientific andcommercial satellites for launch. When you’retalking about payloads as big as a Greyhoundbus and worth up to a half a billion dollars, nodetail is too small.

For example, the clean room/check-out cells, with their numerous sliding and bi-foldplatforms, must be configured precisely in orderto access the satellite during processing.

“There are some rooms that are 90-feet high,” saysLogdon. “It’s impressive just standing in there, andeven more so when they wheel in the rocket.”

Logsdon, who spent 10 years on a fast attack nuclearsubmarine, enjoys working in the less claustrophobic confines of

SSI’s IPF. But the attention to detail and expert knowledge of heating, ventilation andair conditioning — learned in the U.S. Navy — comes in handy.

Currently, Logsdon is counting down to SSI’s next scheduled launch in July. Withhim at the helm, the satellite customer can count on having all systems go.

A Day in the Life of Mike Logsdon

Above: Logsdon and Technical Assistant Sarah Allison stand in one of the three satelliteprocessing cells in the IPF. Here, all fans and ventsare checked to achieve less than 10,000 particlesper cubic foot of air. “No dust bunnies allowed,”laughs Logsdon.

Below: To verify valve line-ups and configuration ofenvironmental systems — including air conditioning,alarms and fire detection systems — Logsdon andTechnical Assistant Sarah Allison consult facilityblueprints.

Below: Logsdonchecks the high-pressure gaspanel used forfueling thesatellite withgaseousnitrogen.

Left: At thecontrols of a 75-toncrane, Logsdonconfigures the towerplatforms to theexact specificationsof the soon-to-arrivesatellite.

Below: It takesthree days to runverification checkson all thecommunicationequipment. “Weanalyze and test allaudio, video andfiber connectionsfor properconfiguration,” says Logsdon.

Facilities Engineer, Spaceport Systems International Vandenberg Air Force Base, Lompoc, California

E

InOurHands

“In Our Hands”; “ITT“; the “ITT Engineered Blocks” symbol; and the tagline,“Engineered for life” are registered trademarks of ITT Industries.

EmployeePhoto ContestWe want to see ITT Industries throughyour eyes. Send us a photo — takensince January 1, 2000 — that captures insome way the essence of our company,and attach an explanation in 50 wordsor less about what you think the photosays about ITT Industries. Ten winningentries will appear in the next edition ofIn Our Hands.

Send all photographs by August 31,2000, to Tom Martin (see addressbelow).

Include your name, title, company workaddress and phone number with yourentry. Good luck!

Farewell toa Flygt ManIn April, ITT Industries and Flygt lost a distinguished

member of its family when Bertil T. Nilsson passed away suddenly.

For the last five years of his 40-year career with ITT Industries, which ended

with his retirement in 1996, Bertil served as President of ITT Fluid Technology

Corporation. But his career was indelibly intertwined with Flygt, where he

started as an apprentice in 1955 and worked his way up to President in 1976.

In many ways, Bertil was responsible for Flygt’s strong international

presence. During his career, he led a marketing assault to convince distributors

that Flygt’s submersible pumps were perfect for drainage and sewage handling

and helped build a global network of distributors. Both efforts were

instrumental in fueling Flygt’s impressive growth through the years.

“We spread like rings on the water,” Bertil remembered after his retirement.

It was an apt metaphor for a man who devoted his life to Flygt and Fluid

Technology. ■

A quarterly newsletter for all employees of ITT Industries.

Contributing Editors

Bill Anders ...............DefenseHoda Chourcri.........ITT Industries HeadquartersMarian Dennison....Specialty ProductsTom Glover ..............ITT Industries HeadquartersJohn Kirkwood .......DefenseClare Lamb ..............ConnectorsGlenn Leibowitz .....ConnectorsDuncan Lewis..........Fluid TechnologyJohn Procopio .........ITT Industries HeadquartersBob Rathke ..............Fluid TechnologyMillie Rogers ...........DefenseDian Smith...............DefenseMonica Spendilow..Fluid TechnologyEvelyn Teichner.......DefenseRachelle Tucci..........DefenseBjorn von Euler.......Fluid TechnologyKajsa Wernström ....Fluid TechnologyEvelyn Yuan .............Fluid Technology

Your comments, suggestions and ideas for futurearticles are welcome:

Thomas R. Martin, Senior Vice Presidentand Director, Corporate Relations ITT Industries, Inc.4 West Red Oak LaneWhite Plains, NY 10604Telephone: 914-641-2157Fax: 914-696-2977 E-mail: tmartin@hq.ittind.com