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Federal-Mogul Completes Power Cylinder System With Acquisition

7 October 1998

Federal-Mogul Completes Power Cylinder System With Acquisition Of Tri-Way Machine

    SOUTHFIELD, Mich., Oct. 6 -- Federal-Mogul Corporation
, announced today that it has agreed to acquire Tri-Way Machine
Limited, a privately-owned manufacturer of machines and machining systems for
the world's metal cutting industry, headquartered in Windsor, Ontario, Canada
and its subsidiary, J.I.S. Machining Ltd., a machiner of powertrain
components.
    "The acquisition of Tri-Way provides Federal-Mogul the competitive
advantage of being the first true power cylinder systems supplier," said Alan
C. Johnson, executive vice president, Powertrain Systems.  "We will have the
capability to machine the connecting rod, which is the one piece of the power
cylinder system we were missing.  We are setting a new industry standard with
this offering."
    The elements of a power cylinder system include: a connecting rod bearing,
connecting rod, piston, piston pin, piston bushing, piston clips, piston liner
and piston rings.
    "I've contacted most of our major customers regarding the acquisition of
Tri-Way by Federal-Mogul and they are unanimously excited," said Joel W.
Jones, chairman and chief executive officer of Tri-Way Machine.  "Our
customers can now realize the full capabilities of Tri-Way as Federal-Mogul
provides significantly improved financial support for expansion."
    "Our technical people will possess the ability to design a complete power
cylinder system and our manufacturing people will have the ability to produce
it all in-house," said Michael C. Verwilst, vice president, Powertrain Systems
- North America.  "This is obviously a very strong competitive position from
which we will drive cost down and performance up."
    "Furthermore, this acquisition gives us additional capability as Tri-Way
also machines other powertrain components including cylinder heads and engine
blocks," added Johnson.
    Tri-Way employs approximately 200 people with sales in 1997 of over $54
million Canadian.  The company's operations are located in Windsor and in
Sterling Heights, Michigan.  Terms of the sale were not disclosed.
    Headquartered in Southfield, Michigan, Federal-Mogul is an automotive
parts manufacturer providing innovative solutions and systems to global
customers in the automotive, light truck, heavy-duty, farm and industrial
markets.  The company was founded in 1899 and has 41,000 employees worldwide.
For more information on Federal-Mogul, visit the company's web site at
http://www.federal-mogul.com.  Federal-Mogul's press releases are available by
fax through Company News On-Call, call 800-758-5804, ext. 306225.