Company Announces Intention to Close Plant in Queretaro, Mexico

LAKE FOREST, ILLINOIS, AUGUST 1, 2002 - Tenneco Automotive (NYSE: TEN) announced today that the company intends to close its Walker exhaust manufacturing facility in Queretaro, Mexico by the end of this year. The closure will impact 170 employees currently employed at the facility, which produces emission control products for original equipment manufacturers. The production from Queretaro will be consolidated at the company's exhaust manufacturing facility at Puebla, Mexico.

This closing is a part of the company's Project Genesis, a worldwide initiative to optimize its manufacturing, distribution and logistics footprint. Project Genesis, announced in December 2001, is designed to help improve efficiency in the company's global operations through consolidation, transferring production between facilities, rearranging operational flow within specific plants and increasing standardization among the company's processes and products.

"While we regret the impact of this decision on our employees in Queretaro, we are determined to take the necessary steps to align our operations and capacity with changing market conditions," said Mark P. Frissora, chairman and CEO, Tenneco Automotive. "We are making fundamental changes through Project Genesis, Six Sigma and Lean manufacturing to improve our efficiency and quality while maximizing our manufacturing, distribution and supply chain operations."

Today's announcement marks the seventh of eight announced facility closings as part of Project Genesis. In addition, the company is streamlining operational flow or relocating capacity at 20 manufacturing and distribution facilities, five of which are already completed. Year-to-date, the company has realized $2 million in savings from Project Genesis, and expects to realize approximately $11 million from this initiative in 2002. Once fully implemented, the company anticipates annualized savings of $30 million beginning in 2004.

Tenneco Automotive continues to make solid progress on improving its operations and financial performance. The company recently reported higher earnings in the second quarter of this year, with reported net income of $19 million, or 45-cents per diluted share compared with net income of $2 million, or 6-cents per diluted share during the second quarter of 2001. The company's strong cash performance during the quarter allowed it to decrease its total debt by $86 million during the quarter and by $94 million year-to-date.

Tenneco Automotive is a $3.4 billion manufacturing company with headquarters in Lake Forest, Ill., and approximately 21,000 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 "expects", "anticipates", "intends", "will", "determined" 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
(1) 847 482 5607
jane.ostrander@tenneco-automotive.com

Tenneco Automotive, Investor Relations
Leslie Hunziker
(1) 847 482 5042
leslie.hunziker@tenneco-automotive.com