Federal-Mogul Corporation Has Chosen Not to Extend Exit Financing Commitment

SOUTHFIELD, Mich.--May 2, 2005--Federal-Mogul Corporation (OTCBB:FDMLQ) said it has chosen not to extend its $1.4 billion exit financing commitment, allowing it to realize significant savings. This commitment is not required at this stage of the Company's exit emergence proceedings.

Federal-Mogul's $500 million Debtor-In-Possession credit facility is not impacted by this decision. The company continues to have access to this facility and is in compliance with all of the terms of this agreement.

When confirmation of the conclusion of the company's emergence proceedings is established, Federal-Mogul will look to reinstate the exit financing commitment. Federal-Mogul continues to work toward emergence while meeting the expectations of its customers and various stakeholders.

About Federal-Mogul

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 31 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.