================================================================= FEDERAL-MOGUL BANKRUPTCY NEWS Issue Number 1 ----------------------------------------------------------------- Copyright 2001 (ISSN XXXX-XXXX) October 2, 2001 ----------------------------------------------------------------- Bankruptcy Creditors' Service, Inc. 609-392-0900 FAX 609-392-0040 ----------------------------------------------------------------- FEDERAL-MOGUL BANKRUPTCY NEWS is published by Bankruptcy Creditors' Service, Inc., 24 Perdicaris Place, Trenton, New Jersey 08618, On an ad hoc basis (generally every 10 to 20 days) as significant activity occurs in the Debtors' cases. Each issue is prepared by Peter A. Chapman, Editor. Subscription rate is US$45 per issue. Copying and re-mailing of FEDERAL-MOGUL BANKRUPTCY NEWS is prohibited. ================================================================= IN THIS ISSUE ------------- [00000] HOW TO SUBSCRIBE TO FEDERAL-MOGUL BANKRUPTCY NEWS [00001] BACKGROUND & DESCRIPTION OF FEDERAL-MOGUL CORPORATION [00002] FEDERAL-MOGUL'S JUNE 30, 2001 CONSOLIDATED BALANCE SHEET [00003] COMPANY'S PRESS RELEASE CONCERNING INSOLVENCY PROCEEDINGS [00004] FEDERAL-MOGUL CHAPTER 11 DATABASE [00005] LIST OF FEDERAL-MOGUL'S 20-LARGEST UNSECURED CREDITORS [00006] KROLL BUCHLER PHILLIPS APPOINTED AS U.K. ADMINISTRATORS [00007] FRANK E. MACHER ELECTED NEW CHAIRMAN & CEO KEY DATE CALENDAR ----------------- 10/01/01 Voluntary Petition Date 10/11/01 Deadline for filing Schedules of Assets and Liabilities 10/16/01 Deadline for filing Statement of Financial Affairs 10/16/01 Deadline for filing Lists of Leases and Contracts 10/21/01 Deadline to provide Utilities with adequate assurance 11/30/01 Deadline to make decisions about lease dispositions 12/30/01 Deadline to remove actions pursuant to F.R.B.P. 9027 01/29/02 Expiration of Debtors' Exclusive Plan Proposal Period 03/30/02 Expiration of Debtors' Exclusive Solicitation Period 09/30/03 Deadline for Debtors' Commencement of Avoidance Actions Organizational Meeting with UST to form Committees Bar Date for filing Proofs of Claim First Meeting of Creditors pursuant to 11 USC Sec. 341 ----------------------------------------------------------------- [00000] HOW TO SUBSCRIBE TO FEDERAL-MOGUL BANKRUPTCY NEWS ----------------------------------------------------------------- FEDERAL-MOGUL BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' cases. The subscription rate is $45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. To continue receiving FEDERAL-MOGUL BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to: Bankruptcy Creditors' Service, Inc. 24 Perdicaris Place Trenton, NJ 08618 Telephone (609) 392-0900 Fax (609) 392-0040 E-mail: peter@bankrupt.com We have published similar newsletters tracking billion-dollar insolvency proceedings since 1990. Currently, we provide similar coverage about the chapter 11 cases involving W.R. 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Name: ---------------------------------------------- Firm: ---------------------------------------------- Address: ---------------------------------------------- ---------------------------------------------- Phone: ---------------------------------------------- Fax: ---------------------------------------------- E-Mail: ---------------------------------------------- ----------------------------------------------------------------- [00001] BACKGROUND & DESCRIPTION OF FEDERAL-MOGUL CORPORATION ----------------------------------------------------------------- Federal-Mogul Corporation 26555 Northwestern Highway Southfield, Michigan 48034 (248) 354-7700 http://www.federal-mogul.com Federal-Mogul Corporation (NYSE: FMO) is one of the world's largest automotive parts companies with worldwide revenue of some $6 billion. Founded in 1899, Federal-Mogul employs 49,000 (23,000 of which were in the United States at year-end) in 300 locations, across 6 continents, and in 24 countries. The Company manufactures: * engine bearings * lighting products * piston pins * rings * cylinder liners * camshafts * sintered products * sealing systems * fuel systems * ignition products * brake products * pistons * friction product * chassis products * wipers The Company's principal customers include many of the world's original equipment manufacturers who make automotive and heavy- duty vehicles, as well as industrial equipment, agricultural, off-highway, marine, railroad, high performance and industrial applications: * Autozone * BMW * Carquest * Caterpillar * Cummins * Fiat * DaimlerChrysler * Ford/Jaguar/Volvo * General Motors * NAPA * Ozark * Peugeot/PSA * Renault * Volkswagen/Audi The Company also manufactures and supplies its products and related parts to the aftermarket. Federal-Mogul's aftermarket customers include independent warehouse distributors who redistribute products to local parts suppliers called jobbers, industrial bearing distributors, distributors of heavy-duty vehicular parts, engine rebuilders and retail parts stores. The breadth of Federal-Mogul's product lines together with the strength of its brand names and sales force, are central to the Company's aftermarket operations. Annual revenues in 2000 were derived from: 57% from the sale of Original Equipment product; and 43% from the sale of Aftermarket products. Two-thirds of revenue is generated in North America and one-third in foreign markets. Net Sales in 2000, by Geographic Region, were: United States 61% Canada 2% Mexico 3% ---- Total North America 66% ---- United Kingdom 8% Germany 14% France 5% Italy 3% Other Europe 1% ---- Total Europe 31% ---- Rest of World 3% ---- 100% ==== Operations are conducted in two operating segments: * The Americas/Asia Pacific segment includes the operations of North and South America, Asia, Australia and India. The products within this segment consist of: powertrain systems products which include engine bearings, large bearings, pistons, piston pins, rings, cylinder liners, connecting rods, camshafts and sintered products; sealing system products which include dynamic seals and gaskets; visibility products which include lighting products and wiper blades; system protection products; brake and friction products; chassis products; ignition products; and fuel system components. These products are marketed under the brand names Federal-Mogul(R), Champion(R), Anco(R), Moog(R), Sealed Power(R), Wagner(R), Abex(R), Fel-Pro(R), National(R), Mather(R), Blazer(R), Belden(R), Carter(R), Weyburn-Bartel(R), Sintertech(R), Precision(R), PowerPath(R), STS(R), Redi-Seal(R), Redi-Sleeve(R), Unipiston(R), Zanxx(R), Signal-Stat(R) and Bentley-Harris(R). * The Europe/Africa segment includes the operations of Europe and Africa. The products within this segment consist of: power cylinder systems which include engine bearings, large bearings, pistons, piston pins, rings, cylinder liners; sintered and camshaft products which include valve components, transmission components and camshafts components; sealing system products which include dynamic seals and gaskets; visibility and ignition products which include wiper blades and ignition components; and friction products. These products are marketed under the brand names Federal-Mogul(R), Champion(R), Moog(R), Nural(R), Glyco(R), AE(R), Goetze(R), Payen(R), Ferodo(R), Brico(R), Sintertech(R) and Bentley-Harris(R). ----------------------------------------------------------------- [00002] FEDERAL-MOGUL'S JUNE 30, 2001 CONSOLIDATED BALANCE SHEET ----------------------------------------------------------------- FEDERAL-MOGUL CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets At June 30, 2001 ASSETS Cash and equivalents...................... $153,000,000 Accounts receivable....................... 516,500,000 Investment in accounts receivable securitization......................... 310,800,000 Inventories............................... 732,800,000 Deferred taxes............................ 176,900,000 Prepaid expenses and income tax benefits............................... 193,400,000 --------------- Total Current Assets................. 2,083,800,000 Property, plant and equipment, net........ 2,283,500,000 Goodwill, net............................. 3,102,700,000 Other intangible assets, net.............. 687,600,000 Asbestos-related insurance recoverable.... 731,000,000 Other noncurrent assets................... 1,261,300,000 --------------- Total Assets......................... $10,149,900,000 =============== LIABILITIES AND SHAREHOLDERS' EQUITY Short-term debt, including current portion of long-term debt.............. $121,000,000 Accounts payable.......................... 432,400,000 Accrued compensation...................... 195,500,000 Restructuring and rationalization Reserves............................... 99,700,000 Current portion of asbestos liability..... 350,000,000 Interest payable.......................... 91,600,000 Other accrued liabilities................. 363,000,000 --------------- Total Current Liabilities............ 1,653,200,000 Long-term debt............................ 3,737,300,000 Long-term portion of asbestos liability... 1,273,500,000 Postemployment benefits................... 622,800,000 Other accrued liabilities................. 945,900,000 Minority interest in consolidated subsidiaries.............. 55,600,000 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely convertible subordinated debentures of the Company......................... 575,000,000 Shareholders' Equity: Series C ESOP preferred stock.......... 34,300,000 Common stock........................... 369,700,000 Additional paid-in capital............. 1,768,800,000 Accumulated deficit.................... (194,500,000) Accumulated other comprehensive loss... (691,100,000) Other.................................. (600,000) --------------- Total Shareholders' Equity........... 1,286,600,000 --------------- Total Liabilities and Shareholders' Equity.............. $10,149,900,000 =============== ----------------------------------------------------------------- [00003] COMPANY'S PRESS RELEASE CONCERNING INSOLVENCY PROCEEDINGS ----------------------------------------------------------------- Federal-Mogul Corporation Files Voluntary Chapter 11 And Administration Petitions to Resolve Asbestos Claims * Business Will Continue to Operate Without Interruption * No Job Losses or Facility Closures Directly Resulting from the Filings * Advanced Technology Effort Continues for Customers * Supply Chain Remains Strong SOUTHFIELD, Michigan -- October 1, 2001 -- Federal-Mogul Corporation (NYSE: FMO) today announced that to separate its asbestos liabilities from its true operating potential, the company and its United States subsidiaries have voluntarily filed for financial restructuring under Chapter 11 of the U.S Bankruptcy Code. In addition, Federal-Mogul subsidiaries in the United Kingdom have filed jointly for Chapter 11 and Administration under the U.K. Insolvency Act of 1986. No company subsidiaries outside of the United States and the United Kingdom are included in these filings. The filings, made today in the U.S. Bankruptcy Court in Wilmington, Delaware, and the High Court of Justice, Chancery Division, London, England, enable Federal-Mogul to develop a plan to resolve its asbestos liabilities. During these restructuring proceedings, Federal-Mogul will continue business operations without interruption, and with the full support of its major customers and suppliers. "Moving forward, Federal-Mogul will continue to serve its existing customers, fulfill current contracts and secure new business," said Federal-Mogul Chairman and Chief Executive Officer Frank Macher. "I have been in close contact with many of our major customers and suppliers, who have indicated that they will support Federal-Mogul during the restructuring process." Federal-Mogul intends to work closely with asbestos claimants and other creditors to develop a financial reorganization plan that will address asbestos claims and establish a viable capital structure for the long-term growth and profitability of the company's operations. In conjunction with the filings, Federal-Mogul has obtained commitments of up to $675 million in a new loan through debtor- in-possession financing from a group of banks led by J.P. Morgan Chase & Co. Following the U.S. Court's approval, Federal-Mogul can use these funds to meet the future needs and obligations associated with normal business operations. This includes payment under normal terms to suppliers and vendors for all goods and services that are provided after today's filing. "After vigorously working for a legislative solution and operating nine months with our new litigation approach for managing asbestos claims, we have determined that the Chapter 11 and Administration processes are the only way we can effectively structure payments for claimants without financially crippling the operations of Federal-Mogul. This voluntary, but difficult, decision to file enables us to continue our operations with the same high level of commitment to our product quality and innovative technologies required to competitively serve our customers," said Macher. "Federal-Mogul is a very good company with dedicated, talented employees. We have a long history and a solid future providing we take this undeniably difficult action." No Federal-Mogul job losses or facility closures are expected as a direct result of the filings. The company expects its employees worldwide will continue to be paid in the normal manner and that their benefits will not be disrupted. Federal- Mogul's qualified U.S. and U.K. pension plans for retirees are protected by law. Macher said the goals of Federal-Mogul's restructuring include: -- Continue business operations without interruption, including the full support of its customers. -- Continue to compensate and reward our employees as valued corporate assets. -- Create an environment where our employees can focus on serving our customers without distractions. -- Grow the business on a global basis. -- Invest capital and human resources in core businesses for our ongoing competitive advantage. -- Develop advanced technologies to maintain performance leadership. -- Provide for asbestos claimants. -- Complete the restructuring proceedings in a reasonable time frame. -- Treat creditors and shareholders fairly. "The operations of Federal-Mogul are fundamentally sound," Macher said. "We have a clear leadership position in many of our major markets, and our products are vital to the automotive industry. We have a loyal, global customer base, strong technology in our core products, and the best brand names in the industry. These business strengths combined with our employee talent forms a solid foundation for long term success. "Today's action provides a means for effectively separating our company's acquired asbestos liabilities from our true operating potential, thus paving the way for Federal-Mogul to emerge from the reorganization process as a stronger, more competitive enterprise," Macher added. "We remain committed in our efforts to bring about a legislative solution for managing asbestos claims." Federal-Mogul is one of more than 30 companies involved in asbestos-related litigation to voluntarily file for Chapter 11 since 1982. Ten companies involved in asbestos-related litigation have filed since January 1, 2000. In the United Kingdom, the Administration Order is a court order placing Federal-Mogul's U.K. businesses under the control of a court-appointed administrator. The order is intended to preserve the company's business and allow a reorganization of its assets while protecting it from actions by creditors and asbestos claimants. While these filings are independent of the U.S., every effort is being made to maintain a mutual goal of reorganization. For more information on Federal-Mogul's financial restructuring, visit the company's web site at http://www.federal-mogul.com For questions or informational needs beyond what is available on the web site, the following call centers have been established: -- Suppliers serving operations in the United States and Canada may call 1-888-333-6645 or 1-248-354-7860 -- Suppliers serving operations outside of the United States and Canada may call the following toll-free numbers: from the United Kingdom -- 0800 389 6881; from Germany -- 0800 181 8324; from France -- 0800 919 605; from Italy -- 800 783 590; from Spain -- 900 938 958. Suppliers calling from any other country can dial +44 161 490 2650. -- Customers, employees, investors, retirees and friends of Federal-Mogul may call 1-888-711-3981 or 1-248-354-7884 Federal-Mogul expects to report its financial results for the third quarter of 2001 in a Form 10-Q scheduled to be filed with the Securities and Exchange Commission no later than November 14, 2001. Headquartered in Southfield, Michigan, Federal-Mogul is an automotive parts manufacturer providing innovative solutions and systems to global customers in the automotive, small engine, heavy-duty and industrial markets. The company was founded in 1899. ----------------------------------------------------------------- [00004] FEDERAL-MOGUL CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor entities filing separate chapter 11 petitions and electronically filed on October 1, 2001: Case No. Debtor Entity -------- ------------- 01-10578 Federal-Mogul Global, Inc. 01-10580 T&N Limited 01-10582 Federal-Mogul Corporation 01-10585 Carter Automotive Company, Inc. 01-10586 T&N Shelf Thirteen Limited 01-10587 Federal-Mogul Powertrain Systems International Limited 01-10589 AE Piston Products Limited 01-10591 Federal-Mogul Dutch Holdings Inc. 01-10593 Federal-Mogul Sealing Systems (Cardiff) Limited 01-10594 AE Sales (Africa) Limited 01-10596 Federal-Mogul Sealing Systems (Rochdale) Limited 01-10598 Aeroplane & Motor Aluminium Castings Limited 01-10599 M.T.A. (Kettering) Limited 01-10600 Amber Supervision Limited 01-10601 Federal-Mogul Global Properties, Inc. 01-10603 Federal-Mogul Sealing Systems (Slough) Limited 01-10604 Ashburton Road Services Limited 01-10605 Federal-Mogul FX, Inc. 01-10606 Mantro Engineering Co. Limited 01-10608 Associated Engineering Group Limited 01-10610 Federal-Mogul Sealing Systems Limited 01-10611 Awncast Limited 01-10613 Federal-Mogul Ignition Company 01-10614 T&N Shelf Thirty Limited 01-10615 Federal-Mogul Mystic, Inc. 01-10617 Mobile Distributing (Spares) Limited 01-10618 Bearings (North-Western) Limited 01-10619 Federal-Mogul Shoreham Limited 01-10620 Colvan Rubber Co. Limited 01-10621 Federal-Mogul Powertrain, Inc. 01-10622 Brake Linings Limited 01-10623 Moores Plastic Units Limited 01-10625 Federal-Mogul Piston Rings, Inc. 01-10626 T&N Shelf Thirty-One Limited 01-10627 Federal-Mogul Sintered Products Limited 01-10629 Contact 100 Limited 01-10630 Federal-Mogul Puerto Rico,Inc. 01-10632 Federal-Mogul Products, Inc. 01-10633 Cosmid Limited 01-10634 T&N Shelf Thirty-Three Limited 01-10637 Cranhold Limited 01-10638 Newalls Insulation Company Limited 01-10640 Dealings Limited 01-10641 Federal-Mogul U.K. Holdings, Inc. 01-10643 Ontall Limited 01-10644 T&N Shelf Three Limited 01-10646 Dumplington Services Limited 01-10647 Federal-Mogul Tri-Way, Inc. 01-10649 Federal-Mogul Systems Protection Group Limited 01-10650 Duron Limited 01-10651 Federal-Mogul Venture Corporation 01-10652 T&N Shelf Twenty Limited 01-10653 Payen (Europe) Limited 01-10654 EW Engineering Limited 01-10655 Federal-Mogul World Wide, Inc. 01-10656 Federal-Mogul Technology Limited 01-10657 Felt Products Manufacturing Co. 01-10658 G.B. Tools & Components Exports Limited 01-10659 Pecal Limited 01-10660 Federal-Mogul U.K. Limited 01-10661 T&N Shelf Twenty-Eight Limited 01-10662 Genthope Limited 01-10664 Edmunds Walker & Co. Limited 01-10665 FM International LLC 01-10666 Presswork-Components Limited 01-10668 Greet Limited 01-10669 Ferodo Caernarfon Limited 01-10672 Sintration Limited 01-10673 Ferodo America, Inc. 01-01675 Halls Gaskets Limited 01-10682 T&N Shelf Twenty-Five Limited 01-10683 Engineering Components Limited U.S. Bankruptcy Court: United States Bankruptcy Court District of Delaware 824 Market Street, 5th Floor Wilmington, DE 19801 (302) 252-2900 Debtors' Counsel: Lawrence J. Nyhan,Esq. James F. Conlan, Esq. Kevin T. Lantry, Esq. Sidley Austin Brown & Wood 10 South Dearborn St., 55th Floor Chicago, IL 60603 (312) 853-7000 - and - Laura Davis Jones, Esq. Pachulski, Stang, Ziehl, Young & Jones 919 North Market St., 16th Floor Wilmington, DE 19899 (302) 652-4100 U.S. Trustee: Patricia A. Staiano United States Trustee (Region 3) Frederic J. Baker, Assistant U.S. Trustee 601 Walnut Street, Room 950W Philadelphia, PA 19106 (215) 597-4411 ----------------------------------------------------------------- [00005] LIST OF FEDERAL-MOGUL'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- The Debtors provide the Court with a Consolidated List of their 20-Largest Unsecured Creditors, noting that they are scheduling the Senior Note claims (holding liens that rank equally with their Bank Lenders) as unsecured because those bonds may be undersecured. Bank of New York serves as the Indenture Trustee for each of the Bond issues indicated. Entity Nature Of Claim Claim Amount ------ --------------- ------------ Bank of New York 7.5% Senior $564,000,000 101 Barclay Street Notes due 2009 New York, NY 10286 Attention: Paul Schmalzel 914-773-5666 914-773-5645 (Fax) Bank of New York 7.375% Senior $395,000,000 101 Barclay Street Notes due New York, NY 10286 2006 Bank of New York 7.75% Senior $392,000,000 101 Barclay Street Notes due New York, NY 10286 2006 Bank of New York 7.875% Senior $341,000,000 101 Barclay Street Notes due New York, NY 10286 2010 Bank of New York 7.5% Senior $240,000,000 101 Barclay Street Notes due New York, NY 10286 2004 Bank of New York 8.8% Senior $103,000,000 101 Barclay Street Notes due New York, NY 10286 2007 Bank of New York 8.37% Medium $32,000,000 101 Barclay Street Term Notes due New York, NY 10286 2001 Bank of New York 8.25% Medium $15,000,000 101 Barclay Street Term Notes due New York, NY 10286 2005 Bank of New York 8.33% Medium $12,000,000 101 Barclay Street Term Notes due New York, NY 10286 2001 Bank of New York 8.12% Medium $10,000,000 101 Barclay Street Term Notes due New York, NY 10286 2003 Bank of New York 8.16% Medium $10,000,000 101 Barclay Street Term Notes due New York, NY 10286 2003 Bank of New York 8.46% Medium $5,000,000 101 Barclay Street Term Notes due New York, NY 10286 2002 State Street Bank & Trust Orangeburg, SC $4,050,000 Global Investor Services Grp IRB Corporate Trust PO Box 78 Boston, MA 01102-0778 Attention: Brian Curtis 617-662-1770 617-662-1466 (Fax) NTN Corporation Trade Payable $3,101,346 22193 Network Place Chicago, IL 60673-1221 Attention: Accounts Payable Dept. 847-298-7500 847-294-1248 (Fax) Cummins Corporation Promissory Note $2,955,000 Box 3005 Columbus, IN 47202-3005 812-377-5000 812-377-3334 (Fax) Waupaca Foundry Trade Payable $2,034,255 Box 68-9343 Milwaukee, WI 53268-9343 715-735-4951 715-735-4981 (Fax) National City Bank of Indiana 1994 $1,605,000 Corporate Trust Department Logansport IRB 101 W. Washington Street Indianapolis , IN 46255 Attention: Cheryl Flaherty 317-267-7000 317-267-7658 (Fax) Leggett & Platt Incorporated Trade Payable $1,222,483 135 Front Street Monroe City, MO 63456 573-735-4567 573-735-4823 (Fax) Kasper Industries Inc. Trade Payable $1,015,896 356 Expressway Court Gaylord, MI 49735 989-705-1177 517-705-1611 (Fax) General Electric Company Trade Payable $947,845 P.O. Box 91645 Chicago, IL 60693 and 1975 Noble Road Cleveland, OH 44139 Attention: Accounts Payable Dept. 800-518-8519 216-266-3317 (Fax) ----------------------------------------------------------------- [00006] KROLL BUCHLER PHILLIPS APPOINTED AS U.K. ADMINISTRATORS ----------------------------------------------------------------- LONDON, England -- 1 October 2001 -- Kroll Buchler Phillips has today been appointed by the Court as Administrators for Federal-Mogul Group's UK based companies. The Administration order coincides with a voluntary filing for financial restructuring under Chapter 11 in the US as Federal-Mogul seeks to resolve its financial difficulties caused by asbestos litigation in the United States. The principal objective of the Administration is to preserve Federal-Mogul Group's business, pending its restructuring and Kroll Buchler Phillips intends to work closely with the Group's management to help resolve its financial problems largely caused by asbestos claims against the Group. No job losses or plant closures are anticipated as a direct result of the Administration. Simon Freakley, Head of Kroll Buchler Phillips and Joint Administrator, commenting upon the appointment, said: "Whilst Federal-Mogul is viable at an operating level, it requires the protection of Administration to allow it time to address the financial difficulties caused by asbestos claims in the US. Without protective action now, the company would not be viable and its value would gradually be lost to the detriment of all concerned. "Administration should allow the Group to restructure its finances so that it can emerge as a stronger business". * * * Contact: Simon Freakley Kroll Buchler Phillips 84 Grosvenor Street London W1X 9DF ENGLAND +44 (0)20 7493 2550 Kroll Buchler Phillips is the UK's leading independent accountancy firm, specialising in corporate recovery, financial restructuring, turnaround and insolvency in the UK and Europe. Kroll Buchler Phillips is part of Kroll Inc. the global risk consulting company. ----------------------------------------------------------------- [00007] FRANK E. MACHER ELECTED NEW CHAIRMAN & CEO ----------------------------------------------------------------- SOUTHFIELD, Michigan -- October 1, 2001 -- The Board of Directors of Federal-Mogul Corporation (NYSE: FMO) has elected Frank E. Macher as chairman and chief executive officer, adding the responsibilities of chairman to his previous role as chief executive officer, effective October 1, 2001. Macher, 60, replaces Robert S. (Steve) Miller Jr., who had been serving as non-executive chairman and who will remain on Federal-Mogul's board of directors. The board's action accelerates a leadership succession plan at Federal-Mogul that was announced at the time of Macher's appointment on January 11, 2001. The acceleration resulted from the recent appointment of Miller as chairman and chief executive officer of Bethlehem Steel Corporation, effective September 24, 2001. Chip McClure remains as Federal-Mogul's president and chief operating officer, a position he has held since January 11, 2001. Macher has more than 35 years of automotive industry experience. He served as president and chief executive officer of the former ITT Automotive, a $6 billion global automotive supplier, from July 1997 to January 1999. Before joining ITT, Macher served 30 years at Ford Motor Co. in a variety of progressively responsible positions in management, manufacturing, engineering and quality. His last position at Ford was vice president and general manager of the Automotive Components Division, the predecessor to the current Visteon Corporation. While at Ford, Macher served as general manager of the Plastic and Trim Products Division, the Electronics Division and the Electrical and Electronics Division. His other roles included vice president of northern Pacific Operations, based in Tokyo, Japan, and general manufacturing manager and plant manager at several Michigan facilities. He began his Ford career in 1966 as a manufacturing development engineer. Headquartered in Southfield, Michigan, Federal-Mogul is an automotive parts manufacturer providing innovative solutions and systems to global customers in the automotive, small engine, heavy-duty and industrial markets. The company was founded in 1899. Visit http://www.federal-mogul.com for more information. *** End of Issue No. 1 ***