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Federal-Mogul Enters Into Agreement to Sell Its Chilean Aftermarket Operations

2 December 1997

Federal-Mogul Enters Into Agreement to Sell Its Chilean Aftermarket Operations

   SOUTHFIELD, Mich., Dec. 2 -- One more successful step was
taken in Federal-Mogul Corporation's restructuring plan as
Chairman and Chief Executive Officer Dick Snell announced today that the
company has entered into an agreement to sell its aftermarket operations in
Chile to Inversiones Federal, S.A., a Chilean corporation headquartered in
Santiago, Chile.
    "Completing the divestiture of our international retail stores remains a
high priority for us," said Snell who has refocused the company back to its
manufacturing core competency.  "We remain on schedule with the restructuring
plan we announced in February 1997.  We have successfully divested of
approximately 80% of the international retail operations to date, with only a
few Latin American operations yet to be sold or closed."
    The Chilean aftermarket operations included a warehouse distribution
center and four retail stores in Santiago.  The retail stores operated under
the name Federal-Mogul Auto Repuestos.  The total operations employed 55
people with 1996 sales of approximately $6 million.
    In connection with the sale of this business, Federal-Mogul will also
enter into supply and distribution arrangements with the buyer, who
distributes various automotive components in Chile.  Federal-Mogul
manufactured products distributed in Chile include Carter(R) fuel system
components, Sterling(R) pistons, National(R) oil seals and Federal-Mogul(R)
bearings along with chassis and engine products marketed under the TRW(R) and
Sealed Power(R) brands.  Terms of the sale were not disclosed.
    Headquartered in Southfield, Michigan, Federal-Mogul is a $2 billion
global manufacturer and distributor of a broad range of non-discretionary
parts primarily for automobiles, light trucks, heavy trucks, and farm and
construction vehicles.  The company was founded in 1899.  Visit the company's
web site at http://www.federal-mogul.com for more information on Federal-
Mogul.

SOURCE  Federal-Mogul Corporation