(1) Operational EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, and certain items such as restructuring and impairment charges, Chapter 11 related reorganization expenses, gains or losses on the sales of businesses, and the impact on gross margin of the fresh-start reporting valuation of inventory as described in the attached reconciliation of non-GAAP financial measures.

(2) Adjusted gross margin is equal to reported gross margin excluding the $68 million impact on gross margin of the fresh-start reporting valuation of inventory recorded in the first quarter 2008 as described in the attached reconciliation of non-GAAP financial measures.

(3) Adjusted net income is equal to reported net income excluding the $68 million impact on gross margin on the fresh-start reporting of inventory adjusted for the tax benefit on the inventory adjustment of $5 million recorded in the first quarter 2008 as described in the attached reconciliation of non-GAAP financial measures.

(4) Cash flow is equal to net cash provided by operating activities less net cash used by investing activities as displayed in the attached statement of cash flows.

About Federal-Mogul

Federal-Mogul Corporation is a leading global supplier of powertrain and safety technologies, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty and off-highway vehicles, as well as in power generation, aerospace, marine, rail, industrial, and the worldwide aftermarket. The company's leading technology and innovation, lean manufacturing expertise, as well as marketing and distribution deliver world-class products, brands and services with quality excellence at a competitive cost. Federal-Mogul is focused on its sustainable global profitable growth strategy, creating value and satisfaction for its customers, shareholders and employees. Federal-Mogul was founded in Detroit in 1899. The company is headquartered in Southfield, Michigan, and employs 50,000 people in 35 countries. Visit the company's Web site at www.federalmogul.com.

Forward-Looking Statements

Statements contained in this press release, which are not historical fact, constitute 'Forward-Looking Statements.' Actual results may differ materially due to numerous important factors that are described in Federal-Mogul's most recent report to the SEC on Form 10-K, which may be revised or supplemented in subsequent reports to the SEC on Forms 10-Q and 8-K. Such factors include, among others, the cost and timing of implementing restructuring actions, the Company's ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, and certain global and regional economic conditions. Federal-Mogul does not intend or assume any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

    CONTACT:   Paula Silver - 248-354-4530
    Jennifer Rass - 248-354-7502

                 F E D E R A L - M O G U L  C O R P O R A T I O N
                 S T A T E M E N T S   O F   O P E R A T I O N S
              (Millions of Dollars, Except Share and Per Share Data)
                                   (Unaudited)

                                   Successor Predecessor Successor Predecessor
                                    Company    Company    Company    Company
                                   ---------- ---------- --------- -----------
                                     Three Months Ended      Six Months Ended
                                           June 30               June 30
                                   --------------------- ---------------------
                                        2008      2007      2008      2007
                                   ----------  --------- --------- ----------
    Net sales                        $1,995.2  $1,763.4  $3,854.4  $3,479.9
    Cost of products sold            (1,599.6) (1,441.0) (3,192.4) (2,849.7)
                                   ----------  --------- --------- ----------
    Gross margin                        395.6     322.4     662.0     630.2
    Selling, general and
     administrative expenses           (212.4)   (212.7)   (421.1)   (419.6)
    Interest expense, net               (42.4)    (51.9)    (90.6)   (101.9)
    Amortization expense                (19.2)     (4.8)    (35.3)     (9.3)
    Chapter 11 and U.K.