Federal-Mogul Develops Its Global Base With New Joint Venture in China

21 August 1998

    SOUTHFIELD, Mich., Aug. 20 -- Federal-Mogul Corporation
, announces the formation of a new joint venture company for the
manufacture of pistons in China.
    Federal-Mogul, in partnership with Qingdao Aodis Piston Union Company of
China, will establish a new company for the manufacture of high quality
pistons for automotive and off-road applications.  Federal-Mogul will take a
61.5 percent interest in the joint venture, which will be called Federal-Mogul
Qingdao Piston Co. Ltd.
     The two partners will invest $13 million over the next two to three
years.  The investment will be in a new factory and manufacturing plant and
equipment, which will meet the growing demands of the automotive companies
now, and into the next century.
    This latest investment follows on from the successful establishment of a
piston ring joint venture in China in 1996, ATG (TP Anqing Goetze, Ltd.).
    "Our new joint venture will enable Federal-Mogul and Aodis to support both
local and international customers.  The new company will provide a source of
high quality pistons and its sister company, ATG, piston rings.  With these
two companies, Federal-Mogul will be able to supply piston systems, a first
for an international group in China," said Alan C. Johnson, Federal-Mogul
Powertrain Systems Group's executive vice president.
    Mr. Wang, director of Aodis, stated, "I am delighted to be able to build
on the success of Aodis with such an international partner, together we will
make a great team and will be able to supply a wide range of quality products
to our current and new customers."
    Headquartered in Southfield, Michigan, Federal-Mogul is a $5 billion
automotive parts manufacturer providing innovative solutions and systems to
global customers in the automotive, light truck, heavy-duty, farm and
industrial markets.  The company was founded in 1899 and has 41,000 employees
worldwide.  For more information on Federal-Mogul, visit the company's web
site at http://www.federal-mogul.com.  Federal-Mogul's press releases are
available by fax through Company News On-Call, call 800-758-5804, ext. 306225.