Federal-Mogul Takes Lead in Parts Counterfeiting Fight

SOUTHFIELD, Mich.--Jan. 1, 20058, 2005--Federal-Mogul Corporation (OTCBB:FDMLQ) will continue to work with other OEM and aftermarket suppliers to lead the automotive industry's fight against counterfeit parts in the coming year, according to company executives. The organization has committed significant resources to combating the problem, which costs the global automotive industry $12 billion each year, with 25 percent of that loss in the U.S. alone, according to the Federal Trade Commission.

Federal-Mogul supports legislation introduced recently in Washington to strengthen the U.S. criminal statute against production and trafficking of counterfeit goods and is a participating member of MEMA's Brand Protection Council, an industry group created in 2004 to address global product counterfeiting.

"We're committed to ensuring consumers are getting the highest quality repair parts that meet industry standards for repair and replacement," said Scott Emmer, brand protection manager for Federal-Mogul. "Federal-Mogul is dedicated to working toward the elimination of counterfeit parts in the supply chain while saving consumers money and alleviating safety concerns."

Counterfeit automotive parts affect the driving public, through increased safety concerns and warranty and insurance claims from faulty and non-compliant parts. In addition, many documented vehicle crashes have been caused by counterfeit parts -- such as counterfeit brake pads and brake shoe linings -- that fail due to poor construction, sometimes resulting in death. The driving public is unaware of the severity of this issue, Emmer said.

Late last year, Federal-Mogul worked with local officials in China and New York to help combat the counterfeit parts issue. Together with a coalition of other spark plug manufacturers, Federal-Mogul identified counterfeit spark plug factories in China's Zhejiang Province. The coalition worked with Chinese authorities on an operation to stop illegal counterfeiting in the province, resulting in the seizure of more than 600,000 counterfeit spark plugs, as well as thousands of counterfeit Champion packaging materials.

In New York City, a similar situation was identified and five parts dealers were found guilty of counterfeiting, with more than $700,000 in counterfeit products seized by the New York Police Department and Taxi and Limousine Commission.

Champion, one of Federal-Mogul's leading brands, is one of the most recognized spark plug brands in the industry and is widely recognized by consumers and automotive do-it-yourselfers. Additional Federal-Mogul products affected include Moog(R) steering and suspension parts and Ferodo(R) products for brake pads and linings.

"In the coming year, we remain committed to protecting our products from counterfeiting, trademark infringement and product diversion," said Emmer. "Strong civil and criminal enforcement action will be pursued against identified counterfeiters, and we will continue to work with other manufacturers to aggressively pursue enforcement of intellectual property laws worldwide."

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.