• Reports EPS of 45-cents for 2Q 2002 versus 6-cents for 2Q 2001
• Reduces total debt $86 million on stronger cash flow
• Improves working capital, before factoring, by $171 million year-over-year
• Increases North American profitability 76 percent
• Wins $127 million in new business globally

LAKE FOREST, ILLINOIS, JULY 23, 2002 - Tenneco Automotive (NYSE: TEN) today announced that the company continues to improve performance with reported net income of $19 million, or 45-cents per diluted share, for the second quarter 2002 compared with net income of $2 million, or 6-cents per diluted share during the second quarter 2001. The company generated $89 million in positive cash flow before financing activities during the quarter, a $72 million cash flow improvement versus second quarter 2001. This strong cash performance allowed the company to decrease its total debt by $86 million during the quarter and by $94 million year to date. Global original equipment customers awarded Tenneco Automotive $127 million in new business through 2005 during the quarter.

The second quarter 2002 results include a one-time pre-tax benefit of $11 million, or 13-cents per diluted share, for the sale of the company’s previously closed York, U.K. facility and a pre-tax non-accruable restructuring expense of $2 million, or 2-cents per diluted share. The second quarter 2001 results include pre-tax restructuring costs of $10 million, or 20-cents per diluted share.

"We are making solid progress on improving our operating fundamentals as well as in the important area of cash management. Our cash performance this quarter was outstanding, which helps us address our top financial objective of lowering the debt load since becoming an independent company," said Mark P. Frissora, chairman and CEO, Tenneco Automotive. "Our North American businesses led the way this quarter, driven by increased volumes, a strengthening aftermarket ride control mix and improved manufacturing efficiency."

The company reported revenue for the quarter of $948 million, compared with $925 million in the second quarter of 2001, a 2 percent increase. Reported EBITDA for the quarter was $106 million, compared with $86 million the previous year.

Working capital in the second quarter, before factoring, improved $171 million year-over-year, or as a percent of sales, from 13.3 percent to 8.8 percent. Through the first six months of 2002, the company generated $59 million in cash flow from working capital, exceeding its 2002 goal of $50 million. Adjusted for restructuring costs, the company recorded gross margin of 21.8 percent in the second quarter 2002, unchanged from the same period one year ago. Through the first six months of 2002, the company has improved its gross margin, adjusted for restructuring costs, by nearly one percentage point. The company’s SGA&E, as a percent of sales, in the second quarter was also unchanged year-over-year at 11.6 percent. Excluding restructuring costs, SGA&E was relatively flat through the first half of 2002 as well. The company outperformed its bank covenant test ratios in the second quarter by an even larger margin than it achieved in the first quarter of 2002.

"Our financial results were impacted this quarter by lower original equipment and aftermarket volumes in Europe," said Frissora. "We are taking aggressive steps to align our operations and cost structure with changing market conditions. We are focused on putting the right engineering and manufacturing processes in place to improve efficiency and flexibility throughout our operations in order to help counter soft industry conditions in Europe."

NORTH AMERICA
North American original equipment (OE) revenue increased 12 percent during the quarter to $391 million versus $350 million in the second quarter of 2001. Excluding catalytic converter pass-through sales, revenue increased 9 percent. North American aftermarket revenue increased four percent to $148 million from $143 million one year ago.

North American EBIT increased to $53 million from $20 million in the second quarter of 2001. Stronger OE volumes, an increasing premium aftermarket ride control mix, aftermarket pricing increases and significantly improved manufacturing through lean initiatives helped drive this performance. North American EBIT results include approximately $1 million in incremental new customer changeover costs year-over-year and $1 million in restructuring costs. North American EBIT in second quarter 2001 included $10 million in restructuring costs. Excluding restructuring costs, the company’s North American profitability improved 76 percent year-over-year.

EUROPE
The company reported European original equipment revenue of $231 million for the quarter, an 11 percent decrease compared with second quarter 2001 revenue of $259 million. The favorable impact on sales of stronger currency was fully offset by lower precious metal prices in the company’s catalytic converter pass-through sales. The company’s European aftermarket revenue increased to $90 million, versus $88 million one year ago. Excluding the impact of currency, aftermarket sales were down 6 percent year-over-year, primarily due to the impact of longer-lasting stainless steel OE exhaust products.

European EBIT was $11 million for the quarter, compared with $22 million reported in the second quarter of 2001. Lower OE and aftermarket volumes, OE launch delays and costly start-up issues on some exhaust platforms impacted European profitability. Results include an $11 million gain from the sale of a previously closed U.K. facility, a $1 million increase in reserves for recently identified warranty issues and $1 million in restructuring costs.

REST OF WORLD
The company’s operations in Australia, Asia and South America improved profitability on essentially flat year-over-year revenues. The Australian operations reported revenue of $31 million for the quarter, compared with $27 million in the second quarter of 2001. In South America, the company reported revenue of $28 million, compared with $37 million one year ago. Revenue from the company’s Asian operations was $29 million, versus $21 million in the second quarter of 2001.

Combined EBIT for Australia, South America and Asia was $7 million compared with $5 million one year ago. Tighter cost management and improved operational performance in South America, coupled with stronger OE demand in Australia more than offset the impact of a two-week strike at our Australian OE exhaust plant and worsening economic conditions in Brazil and Argentina.

The attachments provide additional information on Tenneco Automotive’s second quarter 2002 operating results.

Tenneco Automotive is a $3.4 billion manufacturing company with headquarters in Lake Forest, Illinois and 21,600 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 Monroe® 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 "taking", "focused", "goal", "expect", "anticipate", "should", "believe", "plan", "remain", "confident", "continue" and similar expressions identify 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 execute restructuring and other cost reduction plans and to realize anticipated benefits from these plans; (x) 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; (xi) further changes in the distribution channels for the company's aftermarket products, and further consolidations among automotive parts customers and suppliers; (xii) changes by the Financing Accounting Standards Board or other accounting regulatory bodies of authoritative generally accepted accounting principles or policies; (xiii) acts of war or terrorism and the impact of these acts on economic, financial and social conditions in the countries where we operate 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 Hunziker, 847/482-5042
leslie.hunziker@tenneco-automotive.com