LAKE FOREST, ILLINOIS, FEBRUARY 6, 2001 - Tenneco Automotive (NYSE: TEN) today reported a fourth quarter 2000 loss from continuing operations of $63 million, or $1.74 per diluted share, which includes restructuring and other charges of $42 million after-tax, or $1.18 per share. The company had a loss from continuing operations of $143 million, or $4.25 per diluted share, for the same period in 1999.

Before charges, the company reported a loss from continuing operations of $21 million, or 56 cents per diluted share, compared with income of $1 million, or 5 cents per diluted share in the fourth quarter of 1999.

"Obviously, we are disappointed with our fourth quarter results. Tough industry conditions in the auto parts sector, coupled with our highly leveraged position, had a significant impact on our performance," said Mark P. Frissora, chairman and CEO, Tenneco Automotive. "We have responded aggressively by implementing global cost reduction initiatives, sharply reducing spending and improving productivity in the face of this industry downturn. We will focus intensely on these efforts as we confront an equally challenging year in 2001."

For the full year 2000, Tenneco Automotive reported a loss from continuing operations of $41 million, or $1.18 per diluted share, compared with a loss from continuing operations of $63 million, or $1.87 per diluted share in 1999. Included in these results are one-time non-operational items taken in the third quarter of 2000, and fourth quarter charges in both years related to restructuring, as well as transaction expenses. Excluding one-time items, income from continuing operations in 2000 was $4 million, or 10 cents per diluted share. Excluding one-time items and assuming the company had incurred the same level of stand-alone and interest costs in 1999 as it did in 2000, income from continuing operations in 1999 would have been $24 million, or 74 cents per share.

"Despite this very difficult operating environment, we reduced working capital and capital spending, and initiated a securitization program for receivables to bring our senior debt level down by $107 million in 2000," said Frissora. "We also generated a $23 million improvement in EVA last year, and improved net cash flow before financing and factoring activities by $61 million."

FOURTH QUARTER RESULTS

Tenneco Automotive reported revenue of $849 million for the fourth quarter 2000, which includes $56 million in pass-through sales for catalytic converters. Excluding the pass- through sales, revenue was slightly down compared with fourth quarter 1999 revenue of $806 million.

Reported EBITDA for the quarter was a loss of $7 million, compared with a loss of $37 million in fourth quarter 1999. Excluding the $61 million in pre-tax charges, EBITDA was $54 million in the quarter compared with $77 million for the same period last year. The company also reported EBIT as a loss of $42 million, compared with a loss of $71 million in fourth quarter 1999. Without charges, EBIT was $19 million compared with $43 million the previous year.

North America

Revenue from the company's North American original equipment business declined, primarily due to light vehicle production cutbacks, and continuing lower heavy-duty ride control and elastomer volumes. North American original equipment revenue was $322 million, including $56 million in pass-through revenue from catalytic converter sales, compared with $301 million in revenue for the fourth quarter of 1999, which did not include pass-through revenue for catalytic converter sales.

Fourth quarter revenue for the North American aftermarket was $123 million, compared with fourth quarter 1999 revenue of $138 million. Revenues were down as a result of further deterioration in the replacement parts market.

Fourth quarter EBIT, before charges, for North American operations was $9 million, compared with $33 million, before charges, the previous year. In the original equipment business, the decrease was largely due to light vehicle production cutbacks, especially in December, and continued depressed heavy-duty ride control and elastomer volumes. On the aftermarket side, depressed industry conditions and higher promotional expenses impacted profitability.

Europe

The company reported fourth quarter 2000 revenue for the European original equipment business of $249 million, a 22 percent increase compared with fourth quarter 1999 revenue of $204 million. Revenue would have increased by 28 percent if exchange rates had been the same in the fourth quarter 2000 as in the fourth quarter of 1999. The increase in revenue was the result of very strong exhaust volumes.

Continued weakness in both ride control and exhaust product lines continued to affect revenue from the European aftermarket business. Revenue for the fourth quarter 2000 was $71 million, a 17 percent decline compared with $86 million in the fourth quarter of 1999. Excluding the currency impact, revenue would have declined by 13 percent.

European EBIT, before charges, for the fourth quarter was $5 million, even with the previous year. The erosion in the aftermarket was offset by strong volumes on the exhaust original equipment side of the business.

Tenneco Automotive reported fourth quarter results in other geographical areas as follows:

Combined EBIT, before charges, for South America, Australia, and Asia in the fourth quarter was $5 million, even with EBIT before charges in fourth quarter 1999. Unit volume growth in Brazil, India, and China offset the currency impact and original equipment production cutbacks in Australia.

FULL YEAR RESULTS

For full-year 2000, the company reported an 8 percent increase in revenue to $3.55 billion from $3.28 billion in 1999. Excluding $206 million in pass-through sales for catalytic converters, revenue would have increased by 2 percent.

The company reported EBITDA of $271 million for 2000, compared with $292 million in 1999. Excluding one-time items, EBITDA was $336 in 2000. Excluding one-time items and assuming the company had incurred the same level of stand-alone costs in 1999, EBITDA for 1999 would have been $374 million. Full-year EBIT was $120 million compared with $148 million in 1999. Excluding one-time items, 2000 EBIT was $185 million. EBIT would have been $230 million in 1999 excluding one-time items and assuming the company had incurred the same level of stand-alone costs.

"We are pleased with stronger performances in our European original equipment and emerging markets businesses. Combined, we saw a 72 percent earnings (before-interest and tax) improvement year-over-year," said Frissora.

The attached exhibits provide additional information on Tenneco Automotive’s 2000 and 1999 operating results.

The company will host a conference call on February 6, 2001 at 10:30 a.m. EST. The dial-in number is 800-619-3527 domestic or 1-773-756-4629 international. Passcode is Tenneco Auto. A recording of this call will be available from 1:00 p.m. EST on February 6 through February 13. To access this recording, dial 800-964-4572 domestic or 402-998-1180 international, and enter the passcode 8400. The call will also be available on the Tenneco Automotive web site at www.tenneco-automotive.com.

Tenneco Automotive is a $3.5 billion manufacturing company headquartered in Lake Forest, Ill., with 23,000 employees worldwide. Tenneco Automotive is one of the world’s largest producers and marketers of ride control and exhaust systems and products, which are sold under the Monroe® and Walker ® global brand names. Among its products are Sensa-Trac® and Reflex™ shocks and struts, Rancho® shock absorbers, Walker® Quiet-Flow® mufflers and DynoMax® performance exhaust products, and Monroe® Clevite™ vibration control components.

This press release contains forward-looking statements. Words such as ''working to improve,'' ''will'' and similar expressions identify these forward-looking statements. These forward-looking statements are based on the current expectations of the company (including its subsidiaries). Because these forward-looking statements involve risks and uncertainties, the company's plans, actions and actual results could differ materially. Among the factors that could cause these plans, actions and results to differ materially from current expectations are: (i) the general political, economic and competitive conditions in markets and countries where the company and its subsidiaries operate, including currency fluctuations and other risks associated with operating in foreign countries; (ii) governmental actions, including the ability to receive regulatory approvals and the timing of such approvals; (iii) changes in capital availability or costs, including increases in the company's costs of borrowing (i.e., interest rate increases); (iv) changes in automotive manufacturers' production rates and their actual and forecasted requirements for the company's products, including the company's resultant inability to realize the sales represented by its awarded book of business; (v) changes in consumer demand and prices, including decreases in demand for automobiles which include the company's products, and the potential negative impact on the company's revenues and margins from such products; (vi) the cost of compliance with changes in regulations, including environmental regulations; (vii) workforce factors such as strikes or labor interruptions; (viii) material substitutions and increases in the costs of raw materials; (ix) the company's ability to integrate operations of acquired businesses quickly and in a cost effective manner; (x) the company's ability to execute restructuring and other cost reduction plans and to realize anticipated benefits from these plans; (xi) the company's ability to develop and profitably commercialize new products and technologies, and the acceptance of such new products and technologies by the company's customers; (xii) further changes in the distribution channels for the company's aftermarket products, and further consolidations among automotive parts customers and suppliers; (xiii) changes by the Financing Accounting Standards Board or other accounting regulatory bodies of authoritative generally accepted accounting principles or policies; and (xiv) the timing and occurrence (or non-occurrence) of transactions and events which may be subject to circumstances beyond the control of the company and its subsidiaries. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

CONTACT: Tenneco Automotive, Media relations
Jane Ostrander, 847/482-5607
jane.ostrander@tenneco-automotive.com

Tenneco Automotive, Investor relations
Leslie Cleveland Hague, 847/482-5042
lchague@tenneco-automotive.com