Frost & Sullivan Recognizes Wagner ThermoQuiet Brand from Federal-Mogul with Customer Value Enhancement Award for North American Automotive Aftermarket

BOSTON--July 15, 2004--Frost & Sullivan presented Federal-Mogul Corporation with the 2004 Customer Value Enhancement Award at last night's 2004 Customer Value Enhancement Awards Banquet, in recognition of the company's high-quality product for the automotive aftermarket, in particular, the premium brake pad program Wagner ThermoQuiet(R).

The award acknowledges Federal-Mogul's innovative value-creation and enhancement strategies that have helped expand its customer base, while maintaining the existing installed base. It also recognizes the company's successful sales entry, customer acquisition, and service strategies and the degree to which those strategies have met customer-stated needs and requirements.

Significant growth in the parts aftermarket necessitates taking share from competitors or gaining previously untapped customers. Federal-Mogul's growth success indicates the superior customer value it provides. The company has constantly innovated, developing designs and using improved materials. From its introduction in 2001, ThermoQuiet brake pads have enjoyed unremitting success, providing continuous customer value enhancement.

"Customer value enhancement goes beyond standard customer satisfaction criteria -- success requires a great understanding of the dynamics of the brake pad aftermarket," says Frost & Sullivan industry manager Jasmine Sachdeva. "To generate demand, a manufacturer not only has to build a high-quality, very-low-failure-rate, easy-to-install product, but also develop excitement among distributors and service technicians, and Federal-Mogul has demonstrated that it is achievable."

Prior to launching ThermoQuiet, Federal-Mogul conducted extensive focus group research among vehicle owners and professional service technicians. It was confirmed that there was an unmet need in the marketplace for a premium brake pad that could deliver the three key braking attributes of superior stopping power, quiet performance and enhanced durability. The exclusive IMI(TM) Sound Insulator(TM) design, combined with superior friction formulations, allows ThermoQuiet to deliver all three of these key benefits.

With this program, Federal-Mogul Corporation has taken share from the leading market participants and has given its channel partners the opportunity to make greater profits. Distributors gain from higher returns and better margins because the product is in high demand. Service technicians gain from fewer comebacks and vehicle owners gain from quieter, more effective braking.

"Unit shipments for ThermoQuiet brake pads have increased to an impressive 35 percent, and the return rate for the brake pad category for Federal-Mogul has gone down," notes Sachdeva.

Held in Boston, the Frost & Sullivan banquet honored world-class companies for outstanding performance and achievements in customer care. An annual event, the banquet recognized the quality and merit of distinguished individuals and companies.

Federal-Mogul Corporation

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 and today employs more than 45,000 people in 29 countries. For more information, visit http://www.federal-mogul.com.

About Frost & Sullivan

Founded in 1961, Frost & Sullivan is recognized as a global leader in growth consulting. Frost & Sullivan Awards are presented to companies that demonstrate excellence in their industry, commending the diligence, commitment, and innovative business strategies required to advance in the global marketplace. Frost & Sullivan rigorously analyzes specific criteria to determine award recipients in a vast variety of market industries and landscapes. For further information, visit www.frost.com.