Federal-Mogul Fourth Quarter Expectations

    SOUTHFIELD, Mich., Jan. 22 Federal-Mogul Corporation
announces that earnings from operations for the quarter ended
December 31, 2000 are expected to fall short of its earlier estimated loss of
approximately $(.50) per share.  The earlier estimate had been made primarily
as a result of volume shortfalls in the North American original equipment
market which deteriorated rapidly late in the quarter.  The cessation of
quarter-ending sales incentives in the Company's aftermarket operations also
led to a greater than expected decline in replacement parts revenues.

    "Cost reduction actions were taken promptly but did not keep pace with the
precipitous drop in volume," said Frank Macher, chief executive officer.
"Also, fourth quarter adjustments to square up items such as accruals for
employee benefits, non-asbestos environmental remediation expenses, and
inventory adjustments were all negative."

    The operating loss for the quarter is now expected to be approximately
$(1.00) per share.  It should be noted that extraordinary charges that may be
taken in the fourth quarter for items such as restructuring or asbestos
liabilities are not included in this estimate.

    Federal-Mogul will report results for the quarter and year ended
December 31, 2000 on February 1, 2001, and will provide further details at
that time.