Exhibit 99.1

Exelis Reports 2011 Financial Results, Provides 2012 Guidance

• Full-year 2011 sales of approximately $5.8 billion, with adjusted fully diluted earnings per share¹ of $1.99
• 2012 guidance for sales of $5.4 billion to $5.5 billion and adjusted fully diluted earnings per share of $1.80 - $1.86²

MCLEAN, Va.--(BUSINESS WIRE)--March 2, 2012--ITT Exelis (NYSE: XLS) today reported results for the full year and fourth quarter of 2011. For 2011, the company reported full-year sales of $5.84 billion and adjusted operating income of $583 million, compared to full-year sales of $5.89 billion and operating income of $689 million in 2010.³ Adjusted earnings per fully diluted share for 2011 were $1.99, compared with earnings from continuing operations per fully diluted share of $2.39 in the prior-year period.

Exelis reported fourth-quarter sales of $1.48 billion and adjusted operating income of $168 million, compared to fourth-quarter sales of $1.64 billion and operating income of $219 million in 2010. Adjusted earnings per fully diluted share for the fourth quarter of 2011 were $0.50, compared to earnings from continuing operations per fully diluted share of $0.75 in the fourth quarter of 2010.³

“During a year of significant transition for the company and a challenging budget environment for our customers, the focused execution of our business strategy and dedicated professionalism of our employees helped enable Exelis to deliver its operating and financial performance in 2011,” said Dave Melcher, Chief Executive Officer and President of Exelis.

“We finished 2011 with stronger-than-anticipated top-line performance, driven largely by a strong showing in our Information and Technical Services segment. We believe our 2012 guidance appropriately reflects our challenging global business environment. The diversified Exelis portfolio is aligned with our customers’ mission-critical priorities in enduring capabilities and emerging challenges. As we embark on our first full year as an independent, publicly traded company, we are focused on creating value for our shareholders and delivering the affordable, innovative technologies and services to our customers for which Exelis is known.”

Full-year funded orders increased 12 percent to $5.4 billion from the prior year. Exelis ended the year with a solid total backlog of $11.7 billion, an increase of 2 percent over 2010. ⁴

Several billion-plus-dollar, multi-year new program starts in the company’s Information and Technical Services segment - including Kuwait Base Operations and Security Support Services (K-BOSSS), Army Prepositioned Stocks-5 (APS-5) in Kuwait, Afghan National Security Forces - North and South (ANSF-NS) and the Space Communication and Network Services (SCNS) contract - offset decreased product sales in 2011. The significant shift in sales in favor of service contracts resulted in lower adjusted operating margins of 10 percent, down from 11.7 percent in 2010. The company expects its products-to-services sales mix to largely stabilize in 2012 and beyond.

C4ISR Electronics and Systems fourth-quarter and full-year 2011 sales declined 33.2 percent and 21.7 percent, respectively, primarily due to lower volume for counter improvised explosive device systems and domestic Single Channel Ground and Airborne Radio Systems (SINCGARS). The decline in sales was partially offset by higher sales within the company’s commercial imaging satellite programs.

C4ISR Electronics and Systems fourth quarter adjusted operating income declined 40.2 percent and, as a percentage of sales, decreased from 19.2 percent to 17.2 percent. Full-year 2011 segment adjusted operating income declined 26.3 percent and, as a percent of sales, decreased from 15.7 percent to 14.7 percent. Lower segment adjusted operating income and margin were primarily driven by lower sales on higher margin surge-related products and were partially offset by lower R&D and intangible amortization expenses.

Information and Technical Services fourth-quarter and 2011 sales increased 34.6 percent and 31.7 percent, respectively, primarily due to contract wins on the company’s Middle East programs, namely K-BOSSS and surge-related efforts to support the U.S. armed services in Kuwait and Afghanistan on the APS-5 Kuwait contract and the ANSF Facilities Support programs. This segment also saw increased sales in non-DoD contracts during the period, including the SCNS contract with the National Aeronautics and Space Administration.

Information and Technical Services fourth-quarter adjusted operating income increased 206.7 percent and, as a percent of sales, increased from 2.6 percent to 6 percent. In the fourth quarter of 2010, this segment recorded a loss on a Middle East program, which was primarily the reason for the lower margin in the fourth quarter of 2010 as compared to 2011. Information and Technical Services 2011 adjusted operating income increased 33.3 percent and, as a percent of sales, from 5.5 percent to 5.6 percent. The higher adjusted operating margin was primarily the result of sales mix and favorable contract adjustments.

The company also announced guidance for full-year 2012. Full-year 2012 sales are expected to be $5.4 billion to $5.5 billion, a decrease of 7 percent from 2011. Full-year adjusted operating margin is expected to be 10.6 percent to 10.8 percent, an increase of 60 to 80 basis points year-over-year. Adjusted fully diluted earnings per share are expected in the range of $1.80 to $1.86 per share, down 8 percent from 2011.

Adjusted operating margin guidance for 2012 includes the impact of lower pension expense, compared to 2011, resulting from a change in the company’s salaried pension plan. The company adopted certain changes to its defined benefit pension plan, which gave existing employees a choice between the existing plan and an enhanced defined contribution plan. The existing defined benefit plan is no longer available to new employees. The resulting participant population demographics enabled the use of an extension of the amortization period for prior gains and losses and a net decrease in FAS pension expense of approximately $70 million to $80 million, compared to the prior period. In 2012, the company expects to make pre-tax cash pension contributions in the range of $320 million to $370 million.

The company notes that forward-looking statements of future performance made in this release are based upon current expectations and are subject to factors that could cause actual results to differ materially from those suggested here, including those factors set forth in the Safe Harbor Statement below.

Investor Call Today

ITT Exelis senior management will host a conference call for investors today at 10 a.m. Eastern Standard Time to review fourth-quarter and full-year 2011 results, discuss 2012 expectations and answer questions. The briefing can be monitored live via webcast at the following address on the company's website: www.exelisinc.com/investors/.

About ITT Exelis

ITT Exelis is a diversified, top-tier global aerospace, defense and information solutions company with strong positions in enduring and emerging global markets. Exelis is a leader in networked communications, sensing and surveillance, electronic warfare, navigation, air traffic solutions and information systems with growing positions in cyber security, composite aerostructures, logistics and technical services. The company has a 50-year legacy of innovation and technology expertise, partnering with customers worldwide to deliver affordable, mission-critical products and services for managing global threats, conflicts and complexities. Headquartered in McLean, Va., the company employs about 20,500 people and generated 2011 sales of $5.8 billion. www.exelisinc.com

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 (the “Act”): Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the separation of the Company from ITT Corporation, the terms and the effect of the separation, the nature and impact of such a separation, capitalization of the Company, future strategic plans and other statements that describe the Company’s business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future operating or financial performance. Whenever used, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target” and other terms of similar meaning are intended to identify such forward-looking statements. Forward-looking statements are uncertain and to some extent unpredictable, and involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such forward-looking statements. Factors that could cause results to differ materially from those anticipated include, but are not limited to:

• Our dependence on the defense industry and the business risks peculiar to that industry, including changing priorities or reductions in the U.S. Government or international defense budgets;
• Government regulations and compliance therewith, including changes to the Department of Defense procurement process;
• Our international operations, including sales to foreign customers;
• Competition, industry capacity and production rates;
• Misconduct of our employees, subcontractors, agents and business partners;
• The level of returns on postretirement benefit plan assets and potential employee benefit plan contributions and other employment and pension matters;
• Changes in interest rates and other factors that affect earnings and cash flows;
• The mix of our contracts and programs, our performance, and our ability to control costs;
• Governmental investigations;
• Our level of indebtedness and our ability to make payments on or service our indebtedness;
• Subcontractor performance;
• Economic and capital markets conditions;
• The availability and pricing of raw materials and components;
• Ability to retain and recruit qualified personnel;
• Protection of intellectual property rights;
• Changes in technology;
• Contingencies related to actual or alleged environmental contamination, claims and concerns;
• Security breaches and other disruptions to our information technology and operations; and
• Unanticipated changes in our tax provisions or exposure to additional income tax liabilities.

In addition, there are risks and uncertainties relating to the separation including whether those transactions will result in any tax liability, the operational and financial profile of the Company or any of its businesses after giving effect to the separation, and the ability of the Company to operate as an independent entity.

The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company’s historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Exelis Inc.’s Registration Statement on Form 10, and those described from time to time in our future reports filed with the Securities and Exchange Commission.

¹ Adjusted fully diluted earnings per share and adjusted operating income exclude separation costs resulting from the Exelis 2011 spin-off from ITT Corporation. See non-GAAP disclosures.

² 2012 adjusted earnings per share guidance includes an approximate $0.25 benefit, as compared to 2011, primarily resulting from an extension of the amortization period for unrealized gains and losses as a result of a defined benefit plan change effective as of 1/1/2012 for the Company’s largest plan.

³ See Non-GAAP disclosures.

⁴ Total backlog includes both funded backlog (firm orders for which funding is contractually obligated by the customer) and unfunded backlog (firm orders for which funding is not currently contractually obligated by the customer) and represents firm orders and potential options on multi-year contracts, excluding potential orders under indefinite delivery / indefinite quantity (IDIQ) contracts.

⁵Adjusted operating margin excludes separation costs resulting from the Exelis 2011 spin-off. See non-GAAP disclosures.

CONTACT:
ITT Exelis
Investors:
Katy Herr, 703-790-6376
Director, Investor Relations
Katy.Herr@exelisinc.com
or
Media:
David Albritton, 703-790-6320
Vice President, Communications
David.Albritton@exelisinc.com