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Federal-Mogul Announces Planned Acquisition of Sabo Industria e Comercio Ltda.

3 August 1999

Federal-Mogul Announces Planned Acquisition of Sabo Industria e Comercio Ltda.

    SOUTHFIELD, Mich., Aug. 3 -- Federal-Mogul Corporation
announced today that it has signed a letter of intent to acquire
Sabo Industria e Comercio Ltda., a family owned business headquartered in Sao
Paulo, Brazil, and a leader in gaskets, seals and hoses in South America.
Sabo's wholly owned European subsidiary, KACO GmbH + Co., a leader in seals in
Europe, will also be included in the acquisition.
    "Sabo is a great strategic fit for Federal-Mogul as it completes our total
sealing offering in Europe," said Gordon Ulsh, president and chief operating
officer, Federal-Mogul Corporation.  "This acquisition adds South American
leadership in total sealing and offers us the opportunity to support our
customers expansion in one of the world's fastest growing markets."
    "Sabo is highly regarded for its leading technology and quality products
in the original equipment and aftermarket customer channels," said Rick
Streicher, vice president, Sealing Systems.
    Sabo employs approximately 3,000 people at its seven manufacturing
facilities located in Brazil, Argentina, Germany, Hungary and Austria.  Sabo
has annual sales in excess of $180 million.
    Terms of the planned acquisition were not disclosed.  The transaction is
subject to regulatory and other approvals.
    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, railroad, farm and
industrial markets.  The company was founded in 1899.  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.