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GROWTH STRATEGY OUTLINED AT FEDERAL-MOGUL ANNUAL MEETING

 SOUTHFIELD, Mich., May 26 /PRNewswire/ -- Dennis J. Gormley, chairman and chief executive officer of Federal-Mogul Corporation (NYSE: FMO), outlined the company's vision for growth at its annual meeting today.
 "In 1992, we took bold steps to advance our corporate strategy, grow our business, and strengthen our financial position. We also continued massive process changes at all of our facilities to improve our responsiveness to the marketplace," Gormley said. "This is an exciting time for your company. I have never felt better about our future."
 He said the integration of TRW Inc.'s automotive aftermarket business, acquired in October 1992, is proceeding on schedule for completion in the 1993 fourth quarter. The consolidation is expected to generate cost savings of $15 million this year and annual savings of $21 million by 1995.
 Gormley called the TRW acquisition a "perfect fit" with Federal- Mogul's corporate strategy to grow in the aftermarket. The company's greatest growth opportunities will be in the international aftermarket where sales are targeted to reach $1 billion by the end of the decade. In line with this strategy, Federal-Mogul will continue to look for product opportunities with strong aftermarket potential.
 "Critical to implementing this strategy is strengthening our financial performance," Gormley said. "During the past year we took aggressive steps to cut costs, reduce our debt, improve earnings, and create the financial flexibility we need to maximize our growth opportunities.
 "As our financial performance has improved, so has our return to shareholders," he continued. The cumulative total return on Federal- Mogul common stock was double that of the Standard & Poor's Composite 500 Stock Index from January 1992 to January 1993. For the first four months of 1993, the cumulative return on the company's stock was 21 percent compared to 2 percent for the S&P 500.
 Dramatic process changes being implemented at Federal-Mogul's manufacturing and distribution locations are driving these improvements, according to Gormley. The company has embraced a just-in-time philosophy which emphasizes simplicity, flexibility, total employee involvement and fast response to customer needs.
 "At Federal-Mogul, we welcome change because it brings with it opportunities to serve our customers better, to grow our business, and ultimately, to increase our value to shareholders," he said.
 During the formal business session, shareholders approved the election of eight directors (there were no changes); an amendment to increase the number of shares of common stock available for awards under the company's 1989 Performance Incentive Stock Plan; and the appointment of Ernst & Young as the company's independent accountants for 1993.
 Headquartered in Southfield, Federal-Mogul is a global distributor and manufacturer of a broad range of precision parts primarily for automobiles, light trucks, heavy trucks, and farm and construction vehicles. It operates 33 plants, more than 70 distribution centers and four major research centers around the world.
 -0- 5/26/93
 /CONTACT: Lonnie Ross of Federal-Mogul, 313-354-9934/
 (FMO)


CO: Federal-Mogul Corporation ST: Michigan IN: AUT SU:

KE-JG -- DE013 -- 2415 05/26/93 11:33 EDT
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Publication:PR Newswire
Date:May 26, 1993
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