Federal-Mogul Expands its Presence in China

SOUTHFIELD, Mich.--Aug. 2, 20045, 2004--Federal-Mogul (OTCBB:FDMLQ) is expanding its presence in China with the opening of a 1,800 square-meter distribution facility in Shanghai. This new growth is an important step for Federal-Mogul in the flourishing China market.

"This new center is like a seed. It has been planted, and it will grow as our business grows," said Qingping Zhu, managing director, China. "To us, it is more than just a distribution center. It is a reflection of what Federal-Mogul wants to achieve in China and the region, in general."

Besides acting as a distribution center for China, the facility will serve many other roles. For example:

-- Components from overseas facilities will be imported, packed and stored for local distribution or export

-- Products will be assembled into components - for example, pistons, pins, rings and liners will be assembled into engine sets

-- Locally manufactured products will be packed and re-distributed

-- Products will be exported to Asia, Europe and North America

Some time ago, Federal-Mogul set specific goals for what it wanted to achieve in China and the surrounding region, said Steve Martin, marketing director, Asia, during a speech at the opening ceremony.

"Our vision for China includes world-class manufacturing facilities for all of Federal-Mogul's major components, utilizing our leading-edge technologies," Martin said. "It also includes having a strong regional office in Shanghai, research facilities and a distribution center. But these are just physical entities, they are the things that make a vision come alive. The real goal is for Federal-Mogul to meet our customers' needs and requirements with the right products and the best service."

The new distribution center is Federal-Mogul's seventh facility in China. The other facilities are located in Anqing, Guangzhou, Nanchang, Qingdao, Wuhan and Shanghai.

According to Zhu, Federal-Mogul's objective in China is to become the market leader in all of the company's major product areas - from engine and friction parts to brake materials and windshield wipers.

"The new Shanghai distribution center represents an important step in executing an Aftermarket growth strategy in Asia," said Joseph Felicelli, senior vice president, worldwide Aftermarket operations. "Local availability of product for consistent, regular, on-time delivery to customers is the cornerstone of a successful customer support program. Federal-Mogul, delivering value-added products and services to customers, is now 'on the ground' in Asia."

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.