Federal-Mogul Corporation Reaches Agreements to Facilitate Emergence From Chapter 11 in the U.S. and Administration in the U.K.

SOUTHFIELD, Mich.--Sept. 30, 2005--Federal-Mogul Corporation (OTCBB:FDMLQ) has filed today form 8-K's on the agreements summarized today in the U.S. Bankruptcy Court, which agreements include a settlement agreement among the Company, the Plan Proponents and the U.K. Administrators, which would settle all outstanding matters in dispute among them. In addition, the Asbestos Committee also agreed that the Asbestos Trust would satisfy indemnification obligations to the Company by delivering a portion of the Trust's equity back to the Company.

Concurrently, with the settlement agreement, The Asbestos Committee requested that Mr. Icahn provide the Asbestos Trust, upon the effectiveness of the Plan of Reorganization, with immediate liquidity. In order to facilitate Federal-Mogul's emergence from Chapter 11, Mr. Icahn agreed that one of his entities would provide the Asbestos Trust its desired liquidity by either exercising an option, after the effective date of the Plan, to acquire the Asbestos Trust's position in Federal-Mogul or, if it did not exercise the option, by providing certain financing to the Trust.

Federal-Mogul Chairman, President and Chief Executive Officer Jose Maria Alapont said the agreements represent one of the most significant steps toward emergence from Chapter 11 in the U.S. and Administration in the U.K. "We are pleased with the support and collaboration in the recent months from Mr. Icahn, our Plan Proponents and stakeholders. We will welcome Mr. Icahn's potential increased stake in the emerging and reorganized Company."

Mr. Icahn stated that he was extremely pleased by the settlement agreement among the parties and was gratified that he was able to lend assistance to the settlement process. He further stated that he looked forward to the Company's early emergence from Chapter 11, especially at a time when it appeared that other companies in the auto parts industry were moving in the opposite direction.

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. 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.

Note to Editors: There should be an accent symbol over the "e" in "Jose" above.