BOSTON, Feb. 1, 1998 - ITT Sheraton Corporation, a wholly owned subsidiary of ITT Corporation (NYSE: ITT), announced today that it has signed management contracts, franchise agreements and joint venture agreements representing 32 new hotels in nine countries, 25 of which are open or are scheduled to open this year. The growth continues the momentum established in 1997 when ITT Sheraton announced an all-time record of 103 hotels, representing nearly 25,000 rooms in 25 countries. The new transactions are expected to be immediately accretive to earnings. Among new properties are hotels and resorts representing recently signed agreements in: Canada, Germany, Israel, Italy, Mexico, the Philippines, Spain, Switzerland and the U.S. A new joint venture with Arabella in Europe adds 14 hotels in three countries, mostly in Germany, extending brand presence for The Luxury Collection, Four Points Hotels and Sheraton Hotels Resorts.

"We believe we are about to enter a new and exciting part of our 61-year history, with the pending acquisition of ITT Corp. by Starwood Hotels Resorts (NYSE: HOT)," said Dan Weadock, President and Chief Executive Officer, ITT Sheraton Corporation. "Today's announcement brings us a step closer to becoming the largest and best hospitality company in the world. I fully expect that the number of hotels we will announce in 1998 will exceed our 60-year record of 103 new hotels last year, and today's announcement validates our strategy to build relationships with new owners as well as strengthen our relationship with our existing hotel owners," he added.

"We are the global leader in development for hospitality, continuing to focus on building our brand equity and value for our owners, and the added impact of the addition of the 14 Arabella hotels to our system brings dynamic presence in Germany, along with strong additions in Spain and Switzerland to our existing portfolio. We will continue to be aggressive globally in our expansion initiatives, growing both new management contracts and franchise agreements through strategic alliances that support the enforcement of our high standards of quality and service," Mr. Weadock added.