• Company reports net loss of $16 million, or 44 cents per diluted share, before restructuring and other unusual charges
• Revenue declines two percent year-over-year to $864 million
• Working capital, as a percent of sales, improves from 16.7% to 13.7% ($100 million improvement)
• SGA&E, as a percent of sales, decreases from 13.8% to 11.9% ($18 million improvement)

LAKE FOREST, ILLINOIS, APRIL 24, 2001 - Tenneco Automotive (NYSE: TEN) reported a net loss of $31 million, or 84 cents per diluted share, for the first quarter of 2001. These results include pre-tax restructuring charges of $12 million (23 cents per share), pre-tax environmental charges of $6 million (12 cents per share), and pre-tax charges associated with the company's re-negotiation of its senior debt agreements of $2 million (5 cents per share).

The company reported a net loss of $16 million, or 44 cents per diluted share, for the first quarter of 2001, before restructuring charges and other unusual charges, compared to net income of $1 million, or 3 cents per diluted share, for the first quarter of 2000.

The company's revenue and profitability continue to be impacted by downturns in North American light vehicle and heavy-duty truck production as well as the depressed global aftermarket, despite strong performances during the quarter by its European original equipment and rest of world operations. Revenue for the quarter was $864 million versus $878 million in the first quarter of 2000. EBITDA for the quarter, excluding restructuring and other unusual charges, was $63 million compared with $86 million the previous year, a 27 percent decline.

The company reported that cash flow from operations during the quarter, while negative, did not decline as much as the decline in EBITDA. At quarter end, working capital, before factored receivables, improved by $100 million compared to the first quarter 2000, as the company enhanced its receivables performance by three days and shrunk inventory levels by six days. A $9 million decrease in capital spending and lower taxes also contributed to this cash flow improvement. Additionally, the company reduced its SGA&E expense by $18 million year-over-year, as a result of previously announced restructuring initiatives.

"We continue to focus on the key areas that we can control - manufacturing costs, SGA&E, discretionary spending, and working capital - in order to meet the immediate challenges caused by the difficult industry conditions," said Mark P. Frissora, chairman and CEO, Tenneco Automotive.

The company reported the following geographical results before restructuring and other unusual charges:

NORTH AMERICA
North American original equipment revenue declined 15 percent during the quarter to $324 million versus $382 million in the first quarter of 2000. North American aftermarket revenue decreased 13 percent to $111 million from $128 million in the previous year.

North American EBIT declined to $6 million versus $34 million in the first quarter of 2000. EBIT was primarily impacted by lower revenues, including a significant downturn in the high margin heavy-duty elastomer business. Operating inefficiencies and aftermarket bad debt expense also contributed to the decline.

EUROPE
Driven by increased original equipment exhaust volumes, European original equipment revenue increased 36 percent to $275 million compared to $202 million in the previous year. European aftermarket revenue declined 20 percent to $74 million versus $92 million in first quarter of 2000.

European EBIT increased 33 percent to $16 million for the quarter. This increase was driven primarily by operational improvements in the European original equipment exhaust business.

REST OF WORLD
The company's Australian operations reported a 10 percent revenue decline from $29 million to $26 million; however, revenue would have increased 5 percent if currency exchange rates had been the same in the first quarter of 2000 as in the first quarter of 2001.

The launch of new original equipment programs in South America fueled a 9 percent increase in revenue to $36 million, from $33 million in 2000.

Revenue from Asian operations grew 64 percent to $18 million from $11 million in the first quarter of 2000, driven by production from the company's new facility in Shanghai and aftermarket volumes.

Combined EBIT for South America, Australia, and Asia was $4 million compared to $2 million in the previous year, primarily the result of volume increases.

"We are by no means satisfied with our results," Frissora said. "However, we are encouraged by progress we've made in reducing our overhead costs and spending, and our entire organization is determined to make additional improvement in these areas in the second quarter and throughout 2001."

The attached exhibit provides additional information on Tenneco Automotive's first quarter 2001 operating results.

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.

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