Federal-Mogul Named as Top Supplier for Sears Holdings Corporation

SOUTHFIELD, Mich.--July 26, 2006--Federal-Mogul Corporation (OTCBB:FDMLQ) for the second consecutive year received a "Partners in Progress" Award from Sears Holdings Corporation for 2005. Federal-Mogul was also awarded the prestigious Supplier of the Year for Quality Award in the automotive segment and the larger hardlines segments for its Wagner(R) ThermoQuiet(TM) brake pads and shoes.

The prestigious "Partners in Progress" Awards are presented annually to supplier companies that provide Sears Holdings with quality products and services. Sears Holdings has more than 40,000 suppliers and less than one percent earn this coveted award each year, and only a small segment of that group is honored in an entire merchandise category.

"This is the second time, during our two-year relationship with Sears, that we were honored by the corporation's Partners in Progress Program, underscoring Federal-Mogul's commitment to exceeding customer expectations and delivering excellent results," said Joseph Felicelli, executive vice president, Federal-Mogul Aftermarket Products and Services.

Felicelli, along with Bob Egan, vice president of Federal-Mogul Aftermarket Products and Services, sales, the Americas, accepted the awards at an event hosted by Sears Holdings Corporation CEO and President Aylwin B. Lewis.

"These awards recognize Federal-Mogul as an important partner and supplier and highlight the outstanding teamwork between our two organizations in offering a positive customer experience," said Egan, referring to the increase in brake sales resulting from ThermoQuiet's exceptional quality and reliability.

"Strong and productive supplier relationships are critical to building relationships with our Kmart and Sears customers," said Lewis. "As a new company, Sears Holdings has an opportunity to better serve our customers by working hand in hand with our suppliers. We're pleased to have the opportunity, through the Partners in Progress Program, to recognize the suppliers who have gone the extra mile to support our company."

About Federal-Mogul

Federal-Mogul is a global supplier of automotive components, systems and modules serving the world's original equipment manufacturers and the global 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 global profitable growth to create value for and bring greater satisfaction to its customers, employees and stakeholders.

Headquartered in Southfield, Michigan, the Company employs 45,000 people worldwide. Federal-Mogul was founded in Detroit in 1899. The Company's principal customers include many of the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty truck, agricultural, marine, rail and industrial vehicles and equipment as well as the worldwide aftermarket. Federal-Mogul's aftermarket products are sold under a variety of leading brands, including but not limited to, AE(R) engine products, ANCO(R) wipers, Champion(R) spark plugs and wipers, Fel-Pro(R) gaskets, Ferodo(R) brake pads, Glyco(R) bearings, Goetze(R) piston rings, Moog(R) chassis products, National(R) wheel-end components, Nural(R) pistons, Payen(R) gaskets, Sealed Power(R) engine products and Wagner(R) lighting and brake products.

For more information on Federal-Mogul, visit the company's Web site at www.federal-mogul.com.

Note to Editors: There should be an umlaut over the "u" in "Nural" above.