Federal-Mogul Holds Labor Pow Wow in New York

LONDON, August 11 -- Federal-Mogul (FMO) announced today that it hosted a meeting among representatives of its U.K. workforce, the Creditors Committee, the Company, the U.K. Administrators, the Trustee of the T&N Pension Scheme and Carl Icahn with the goal of resolving the remaining Pension Scheme issues.

The Company believes that much progress was made toward airing the open issues and, with the assistance of Mr. Icahn, attempting to find solutions that would be satisfactory to all parties.

Mr Icahn stated that "we presented a proposal that we believe will save jobs of FMO's U.K. workforce and avoid a wind-up of the Pension Scheme.

About Federal Mogul

Federal-Mogul is a leading global supplier offering a comprehensive portfolio of quality products, trusted brands and creative solutions to the automotive and other industries. The Company utilizes its engineering and materials expertise, proprietary and innovative technology, manufacturing skill, distribution flexibility and marketing power to create value for its stakeholders. The Company's principal customers include many of the world's foremost original equipment manufacturers of vehicles and industrial products, and aftermarket retailers and wholesalers

Headquartered in Southfield, Michigan, Federal-Mogul's rich heritage began in Detroit, Michigan in 1899. Today, Federal-Mogul employs more than 45,000 people in 29 countries. 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.