First quarter sales increased from $414 million in 1998 to $588 million in 1999 as a result of several global acquisitions made in 1998 and the acquisition of CMI completed at the start of 1999. The record first quarter performance was the result of strong vehicle production in North America and significant productivity improvements, including acquisition-related synergies.

The inaugural offering is expected to occur in the near future, subject to market conditions. Under the enhanced Corporate Debt Issuance Philosophy, which will be reviewed periodically, Ford Credit intends to issue GlobLS two to four times per year in transactions of $3 billion or greater. Ford Motor Company may also, from time to time, participate with Ford Credit in this program. Ford Credit will continue to access other funding sources, such as MTN, asset securitization, and foreign currency markets.

Bear Stearns, Merrill Lynch, and Salomon Smith Barney have acted as advisors in developing this enhanced philosophy and have been selected as joint bookrunning managers for the initial transaction. Bear Stearns will act as Global Coordinator for the initial transaction.

Federal-Moguls New European Structure Strengthens Customer Focus

SOUTHFIELD, Mich. June 4, 1999 - Gordon A. Ulsh, president and chief operating officer, Federal-Mogul Corporation (NYSE: FMO), announces a new operating structure for Europe appointing Wilhelm A. Schmelzer, 58, executive vice president, Europe, effective immediately. Schmelzer will be responsible for all manufacturing and distribution operations, and all sales and marketing activities in Europe and Africa for both original equipment and aftermarket customer channels. While these units benefit from strategy, engineering and technology development lead by the Southfield, Michigan based Powertrain Systems, Sealing Systems and General Products operating executives, the Europe-based functions report directly to Schmelzer.

In conjunction with this appointment, Ulsh announces the expansion of Rick Streicher's role with Sealing Systems. Streicher, 52, is appointed vice president, Sealing Systems, replacing Schmelzer as the leader of Sealing Systems. He gains responsibility for the group's strategic planning, global engineering and manufacturing processes. He will continue to be responsible for the gasket and seal operations in North America and Asia, adding South America.

This move is accompanied by a realignment of product lines operating under Federal-Mogul's three operating groups. Camshafts and sintered products, once part of General Products, now are aligned under Powertrain Systems. Wiper products, once part of Sealing Systems, now are aligned under General Products.

"The realignment in Powertrain Systems supports the growth of our cylinder head assembly as a module, along with our power cylinder system, making it easier for customer contact and development with us," said Ulsh. "In General Products, the combination of wipers together with our lighting products allow us a combined visibility product offering that offers added value to our customers."