27th September 2005 - Federal-Mogul Corporation and UK Administrators Reach Agreement

Federal-Mogul Corporation and various of its constituencies in the Chapter 11 proceedings have reached agreement with the United Kingdom (UK) Administrators of Federal-Mogul's UK affiliates. The result of the agreement will allow Federal-Mogul to retain the businesses and other assets of its UK affiliates in exchange for monetary amounts and reserves that will be used by the Administrators to provide a distribution to UK creditors. The agreement, which has been filed with the U.S. Bankruptcy Court in Delaware, is subject to approvals and determinations by the UK and U.S. Courts.

Federal-Mogul Chairman, President and Chief Executive Officer Jose Maria Alapont said the agreement represents a major step toward the fulfillment of the Company's intention to emerge reorganized in a manner that separates the Company's operating potential from its asbestos liabilities.

"Federal-Mogul, its employees and stakeholders, as well as the Administrators, are pleased with the agreement, which brings us closer to emergence from Chapter 11 in the U.S. and Administration in the UK," Alapont added. "On behalf of Federal-Mogul, I extend my sincere gratitude to our customers and vendors for their support; we are committed to driving global profitable growth through our leading technology and innovation, world-class portfolio of products and services, and competitive cost structure."

About Federal-Mogul

Federal-Mogul is a global supplier of automotive components, sub-systems, modules and systems serving the world's original equipment manufacturers and the aftermarket. The company utilizes its engineering and materials expertise, proprietary technology, manufacturing skill, distribution flexibility and marketing power to deliver products, brands and services of value to its customers. Federal-Mogul is focused on the globalization of its teams, products and processes to bring greater opportunities for its customers and employees, and value to its constituents.

Headquartered in Southfield, Michigan, Federal-Mogul was founded in Detroit in 1899. On October 1, 2001, Federal-Mogul decided to separate its asbestos liabilities from its true operating potential by voluntarily filing for financial restructuring under Chapter 11 of the Bankruptcy Code in the United States and Administration in the United Kingdom. For more information on Federal-Mogul, visit the company's Web site at http://www.federal-mogul.com

Source: Federal-Mogul Press Release