Press Releases

Tenneco Automotive Extends Its U.S. Securitization Program

January 28, 2003

Attractive source of liquidity extended through January 2005

LAKE FOREST, ILLINOIS, JANUARY 28, 2003 - Tenneco Automotive (NYSE: TEN) announced today that it has reached agreement to extend its accounts receivables securitization program in the United States. The new $50 million program will be for two years and will expire January 31, 2005. Other key terms of the program disclosed previously in the company’s quarterly SEC reports remain unchanged.

The U.S. receivable securitization program supplements other receivables sales programs currently in place at the company’s European subsidiaries, which provide about $40 million to $55 million of funding. Under the terms of its senior credit facility, Tenneco Automotive can sell up to $150 million of receivables outstanding at any one time.

The company also has arrangements currently in place with two major OE customers in North America under which payments to Tenneco Automotive are made earlier than otherwise required under existing payment terms. These accelerated payment programs provide enhanced liquidity for the company above and beyond the U.S. securitization program and its $450 million senior revolving credit facility. Currently these programs have grown to about $50 million since they began in 2001.

"Given the difficult conditions in the capital markets, particularly for companies in the automotive industry, we are very pleased to extend this highly attractive source of capital for another two years rather than the one year renewal normal for this type of financial structure," said Mark Frissora, chairman and CEO, Tenneco Automotive. "Our ability to continue to access the capital markets reflects the success we achieved over the last two years in reducing costs and generating positive cash flow under very challenging industry conditions."

Subject to customary conditions, the company expects the U.S. receivable securitization program to become effective on January 31, 2003.

Tenneco Automotive is a $3.4 billion manufacturing company with headquarters in Lake Forest, Illinois 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 Monroe® Reflex™ shocks and struts, Rancho® shock absorbers, Walker® Quiet-Flow™ mufflers and DynoMax® performance exhaust products, and Monroe® Clevite™ vibration control components.

Tenneco Automotive, Media Relations
Jane Ostrander
(1) 847 482 5607

Tenneco Automotive, Investor Relations
Leslie Hunziker,