Press Release

Federal-Mogul Completes Sale of Electrical Products to Capsonic Automotive

09/13/96

Federal-Mogul Completes Sale of its Electrical Products Business


SOUTHFIELD, Mich., Sept. 11 -- Federal-Mogul Corporation
Chairman and Chief Executive Officer Dennis J. Gormley
today reported the company completed the previously announced sale of
the assets and business of its Electrical Products to Capsonic
Automotive, Inc., headquartered in Elgin, Illinois.

The sale involves a consolidation of the manufacturing capabilities
which are now conducted within the Federal-Mogul facilities located
in: Juarez, Mexico; Logansport, Indiana; and Leiters Ford,
Indiana. This consolidation of the Electrical Products manufacturing
business into one facility is expected to be complete in nine
months. Also, research and product development activities currently
located in St. Louis, Missouri will be relocated to Elgin, Illinois.

Federal-Mogul will fully support the original equipment customers
during the consolidation process.

Under terms of the agreement, Federal-Mogul received $11 million in
cash and retained customer receivables, while Capsonic Automotive
acquired the assets and assumed liabilities of the Electrical Products
business conducted in Juarez. As the parties consolidate the Indiana
electrical production into Juarez and as customer receivables are
collected, Federal-Mogul expects to realize an additional $3-5
million. The proceeds from the sale will be used to reduce bank
borrowings.

"The sale of the Electrical Products business is consistent with our
stated strategy to focus on our core product lines," said Gormley
noting that only a very small portion of the product lines
manufactured by Electrical Products are sold to the
aftermarket. Federal-Mogul continues to manufacture fuel and lighting
product lines in Indiana and Mexico; these products are sold
principally to the aftermarket.

Headquartered in Southfield, Michigan, Federal-Mogul is a $2 billion
global distributor and manufacturer of a broad range of
non-discretionary parts primarily for automobiles, light trucks, heavy
trucks, and farm and construction vehicles. The company serves both
the aftermarket and original equipment market providing the right
part, to the right place at the right time to customers around the
world. Federal-Mogul operates more than 80 distribution centers, 129
international auto parts stores, 27 plants and four major research
centers worldwide.