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Federal-Mogul Reaches Agreement to Sell Glacier Vandervell Bearings

28 October 1998

Federal-Mogul Reaches Agreement to Sell Glacier Vandervell Bearings Group

    SOUTHFIELD, Mich., Oct. 27 -- Federal-Mogul Corporation
today announced it has entered into an agreement to sell the
Glacier Vandervell Bearings Group and certain other engine hard parts assets
to Dana Corporation .
    Proceeds expected to be received in connection with the disposal are $430
million.  The company also expects to realize approximately $13 million net
proceeds from the collection of receivables from the businesses sold.  Cash
collected will be used to pay down debt.
    When Federal-Mogul acquired T&N plc earlier this year, the company entered
into a Consent Order with the Federal Trade Commission to divest the global
thinwall bearings, polymer bearings and North American thinwall bearings
aftermarket segments, collectively known as the Glacier Vandervell Bearings
Group.  Additionally, Federal-Mogul has agreed to sell certain other former
T&N engine hard parts inventories and the corresponding product and customer
information, not including gaskets, to Dana.
    "We are pleased with the transaction as it will allow us to complete our
integration of T&N into Federal-Mogul and move forward," said Dick Snell,
chairman and chief executive officer.
    Completion of the sale is subject to regulatory approval and is expected
for the fourth quarter.
    Headquartered in Southfield, Michigan, Federal-Mogul is a $7 billion
automotive parts manufacturer providing innovative solutions and systems to
global customers in the automotive, light truck, heavy-duty, and farm and
industrial markets.  Visit the company's web site at
http://www.federal-mogul.com for more information.  Federal-Mogul's press
releases are available by fax through Company News On-Call, call 800-758-5804,
ext. 306225.