Tenneco Automotive Reduces Salaried Work Force

Company Also Consolidates Business Units

LAKE FOREST, Ill., Oct. 28 -- Tenneco Automotive announced today that the company plans to eliminate up to 250 salaried positions (about six percent) -- the majority at the middle and senior management levels -- from its worldwide work force as part of a global restructuring. The company will also reduce the number of strategic business units to six by consolidating its Australia/New Zealand operations with its Asia operations to create a new Asia-Pacific business unit.

This restructuring initiative accelerates plans to reduce SGA&E (selling, general, administrative and engineering) expense and improve the company's gross margin performance. The company is taking this action to strengthen its competitiveness and sustain turnaround efforts in the face of challenging industry conditions, including rising raw material costs.

"We regret the impact this action will have on our employees," said Mark P. Frissora, chairman and CEO, Tenneco Automotive. "The reality of volatile market conditions makes this move imperative. The decision to reduce our workforce, while difficult, is the right step to help maximize our potential for success with a lower cost structure and more efficient operations."

Tenneco Automotive's Australia/New Zealand business unit will become a part of a newly created Asia-Pacific business unit, which will also include the company's operations in China, Japan, India, Thailand and Singapore, as well as its Japanese original equipment business worldwide. Timothy Donovan, executive vice president, will lead the Asia Pacific business unit. Previously, Donovan was managing director of the International Group, which included the company's operations in South America and Asia. Alex Drysdale, currently managing director for the Australia/New Zealand business unit, is resigning to pursue other interests.

Don Miller, currently vice president and general manager of the European aftermarket, will take on a new role of establishing and developing the company's aftermarket business in China. As a result, the European aftermarket sales and marketing organization will report directly to Hari Nair, executive vice president and managing director of Tenneco Automotive Europe.

Finally, Tenneco Automotive's South American operations, which had been part of the company's International business unit, will now be moved under the company's European operations and managed by Hari Nair as well.

Tenneco Automotive estimates that this cost reduction plan will be completed by the end of the first quarter 2005 and will generate approximately $20 million in annual savings when fully implemented. The company anticipates taking charges between $20 million and $24 million, over the next two quarters, related to the reductions announced today. All work force reductions will be done in compliance with legal and contractual requirements.

Tenneco Automotive is a $3.8 billion manufacturing company with headquarters in Lake Forest, Illinois and approximately 19,200 employees worldwide. Tenneco Automotive is one of the world's largest designers, manufacturers and marketers of emission control and ride control products and systems for the automotive original equipment market and the aftermarket. Tenneco Automotive markets its products principally under the Monroe(R), Walker(R), Gillet(R) and Clevite(R)Elastomer brand names. Among its products are Sensa-Trac(R) and Monroe Reflex(R) shocks and struts, Rancho(R) shock absorbers, Walker(R) Quiet-Flow(R) mufflers, Dynomax(R) performance exhaust products, and Clevite(R)Elastomer noise, vibration and harshness control components.

Further information can be found on the company's web site at http://www.tenneco-automotive.com/ .