Federal-Mogul Reports Record Second Quarter Sales,

Earnings, Cash Flow and EVA Southfield, Mich. (PROTEXT) - -- $22 Million of economic value added. -- Earnings per share from operations up 102% to $1.21,excluding

integration costs. -- Second quarter sales reach new record of $1,687 million, up

39%. -- Cash flow from operations, net of capital expenditures,totals

$202 million. -- $70 million additional net new business announced. -- Acquisition of Alcan Nural completed. -- Automotive cylinder liner joint venture with Teikoku

established. -- Divestiture of Italian auto parts distributor announced. Federal-Mogul Corporation (NYSE: FMO) today announced recordsecond quarter sales, earnings, cash and EVA, posting solidfinancial results for the tenth consecutive quarter. "Our ability to add economic value through excellent cashgeneration and by doubling our earnings per share from operationsshows that the integration plan is right on track," said DickSnell, chairman and chief executive officer. "Our focus on defectreduction continues to strengthen customer partnerships." Federal-Mogul announced an additional $70 million in net newbusiness awards covering the 1999 to 2003 timeframe for bothoriginal equipment and aftermarket customers. This is an 11%increase over the first quarter announcement bringing net newbusiness to $730 million. The $70 million net new sales byFederal-Mogul's operating groups include Powertrain Systems with$40 million, Sealing Systems with $27 million and GeneralProducts with $3 million. In line with its growth strategy, Federal-Mogul completed itsannounced acquisition of Alcan Nural, a German piston company.Federal-Mogul also established a joint venture with TeikokuPiston Rings for the manufacture of automotive cylinder liners atFederal-Mogul's current Lake City, Minnesota, manufacturingfacility. Federal-Mogul's second quarter revenues increased to $1,687million compared to $1,214 million in 1998. For the secondquarter, the company earned $96 million or $1.21 per share fromoperations, compared to $31 million or $.60 per share fromoperations in 1998. Earnings per share from operations excludeintegration costs in 1999, and integration costs as well asextraordinary items in 1998. Including these items, the companyreported second quarter earnings of $87 million or $1.11 pershare in 1999, and a loss of $3 million or ($.07) per share in1998. The company generated $202 million of cash from operations.Cash from operations is net of capital expenditures and excludesintegration and restructuring payments. EVA increased from $2million in the second quarter of 1998 to $22 million the secondquarter of 1999. Federal-Mogul's second quarter sales were 63% in NorthAmerica, 32% in Europe and 5% in the rest of the world. Theoriginal equipment market represented 53% of the company's globalsales. Federal-Mogul's six-month consolidated sales reached $3,329million, up 78% compared to the same period last year. Earningsfrom operations for the first two quarters of 1999 were $170million, an increase of 181% over the first six months of 1998.Sales and earnings results were records for any six-month periodin the company's 100-year history. In the second quarter, Federal-Mogul was honored by Auto Valuewith Outstanding Installer Promotion and Outstanding ManpowerSupport awards. Advance Auto Parts recognized Federal-Mogul asits 1998 Hard Parts Vendor of the Year. Federal-Mogul alsoreceived Toyota's Excellent Delivery Performance Award. Powertrain Systems Powertrain Systems reported second quarter sales of $755million compared to $639 million in 1998. In new business awards, Federal-Mogul received the piston,rings and liner business for Navistar's inline 6-cylinder engine.Harley-Davidson selected Federal-Mogul to supply engine bearingsand Briggs and Stratton's M23 engine program will featureFederal-Mogul's piston and ring assembly. In Japan, Federal-MogulIgnition Products was awarded the spark plug business for Mazda'sOES division. North America Sintered Products was awarded acontract by Means Industries for the manufacture of key powdermetal components that make up their one-way clutch system to beused in the Ford 4R100 transmission on the 2001 model year. Federal-Mogul's piston and ring manufacturing operations inBradford and Sunderland, England, received the 1998 Best SupplierAward by Nissan UK. Powertrain Systems' Waupun, Wisconsin valveguide and seat manufacturing facility received its second GoldPentastar Award from Chrysler. Sealing Systems Sealing Systems reported second quarter sales of $319 millioncompared to $303 million in 1998. In new business awards, in Europe Federal-Mogul was awardedthe exhaust gaskets and elastomeric seals business for variousBMW models. General Products General Products reported second quarter sales of $613 millioncompared to $272 million in 1998. In new original equipment business, Federal-Mogul FrictionProducts was awarded by Ford the rear lining business for theC170. Friction Products was also awarded the front pads for aMazda sport utility vehicle. DaimlerChrysler awarded Federal-Mogul the fog lamp business for the Jeep Cherokee.Internationally, Federal-Mogul won front and rear fog lampbusiness from General Motors and Isuzu in Thailand and Brazil.Federal-Mogul also was awarded from General Motors in China thesiderail lamp business for the W van. Federal-Mogul's Lighting Products facility in Hampton,Virginia, received the Shingo prize for manufacturing excellenceawarded by the National Association of Manufacturers and the UtahState University College of Business. The Lighting Productsfacility in Avilla, Indiana, received the State of IndianaQuality Improvement Award. Third Quarter Dividend on Common Stock Federal-Mogul's Board of Directors today declared the regularquarterly dividend of $.0025 cents a share on the common stock ofthe company. Third quarter common stock dividends are payableSeptember 10, 1999 to shareowners of record at the close of thebusiness August 31, 1999. Headquartered in Southfield, Michigan, Federal-Mogul is anautomotive parts manufacturer providing innovative solutions andsystems to global customers in the automotive, light trucks,heavy duty, farm and industrial markets. The company was foundedin 1899. For more information on Federal- Mogul, visit thecompany's web site at http://www.federal-mogul.com. Federal-Mogul's press releases are available by fax through Company NewsOn-Call, call (in the USA) 800-758-5804, ext. 306225. Information in this press release contains forward-lookingstatements which are not historical facts and involve risk anduncertainties. Actual results, events and performance coulddiffer materially from those contemplated by these forward-looking statements including, without limitations, the company'sability to effectively divest certain assets, the cost and timingof implementing restructuring actions, the combination of thebusinesses of Federal-Mogul, T&N, Cooper and Fel-Pro, conditionsin the automotive components industry, certain global andregional economic conditions and other factors discussed in thispress release and those detailed from time to time in thecompany's filings with the Securities and Exchange Commission.Federal-Mogul undertakes no obligation to update any forwardlooking statement to reflect events or circumstances after thedate of this press release. ots Original Text Service: Federal-Mogul Corporation Internet: http://www.newsaktuell.de Contact:Kimberly A. Welch, corporate communications, (in the USA) 248-354-1916, or Bonnie J. Price, investor relations, (in the USA)248-354-8847, both of Federal-Mogul Company News On-Call:http://www.prnewswire.com/comp/306225.html or fax, (in the USA)800-758-5804, ext. 306225 Web site: http://www.federal-mogul.com

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