Federal-Mogul Second Quarter and Year 2000 Outlook

26 May 2000
Federal-Mogul Second Quarter and Year 2000 Outlook
    SOUTHFIELD, Mich., May 25 Federal-Mogul Corporation
today announced that it expects financial results for the second
quarter and full year to fall below consensus estimates.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20000525/DETH025LOGO )
    "Our revised earnings projections are disappointing, but the re-
calibration of our financial targets was necessary," said Dick Snell, chairman
and chief executive officer.  "Our customer focus requires us to invest in
advanced technologies and expanded marketing support.  We cannot sacrifice our
investment in these areas.  Given our current projections for the remainder of
this year, we cannot provide the required support to these areas and still
meet earnings expectations."
    Based on the company's current projections, earnings per share from
operations for the second quarter are expected to be approximately $.65 per
share.  Earnings per share from operations for the year are expected to be
approximately $3.00.
    The projected earnings shortfall is primarily attributable to a weaker
North American aftermarket, significant weakening of European currencies
against the dollar and OE demand versus capacity constraints.
    Federal-Mogul will hold a conference call at 5 p.m., Eastern Daylight
Time, today, May 25.  The dial-in number is 719-457-2637 and the confirmation
code is 671407.  Please dial into the conference 15 minutes prior to the
5 p.m. start.  A recording of this conference call will be available after
8 p.m. (EDT) today through Tuesday, May 30, 2000.  To access this recording,
dial 719-457-0820 and then enter 671407 for the confirmation code.
    Federal-Mogul intends to release actual second quarter earnings on July
20, 2000.
    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, and 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.
    This press release contains forward-looking statements that involve a
number of risks and uncertainties, including Federal-Mogul's expectations and
beliefs regarding its earnings for the quarter ended June 30, 2000 and year-
end.  Factors that could cause actual results to differ materially from those
reflected in the forward-looking statements are discussed in the Company's
Annual Report on Form 10-K.