Press Releases

Tenneco Automotive Plans Engineering Center In China

April 7, 2004

Center Will Support Company's Growing Customer Base

BEIJING AND LAKE FOREST, ILLINOIS, APRIL 7, 2004 - Tenneco Automotive (NYSE: TEN) announced today that it plans to establish an engineering center in China within the next 18 to24 months. The company intends to invest several million U.S. dollars in the center, which will add incremental engineering resources to better serve Tenneco's growing customer base in China. The location of the new center has not yet been determined.

In addition to headquarters in Shanghai, the company's five joint venture manufacturing operations in China supply ride and emission control components and systems for original equipment manufacturers including domestic producers and global customers such as Volkswagen, General Motors, PSA, Ford, Nissan and beginning in 2004, Audi and BMW . The new center will provide engineering resources for the company's ride control and emission control businesses and will support aftermarket and OE customers.

"Establishing an engineering center in China is an important next step in managing our growth in this dynamic market," said Mark P. Frissora, chairman and CEO, Tenneco Automotive. "One of Tenneco Automotive's key growth strategies is to expand in new markets and China represents a tremendous opportunity in this area. We anticipate a growth rate there of approximately 10 percent annually over the next five to seven years."

Tenneco Automotive is in the process of surveying customers and local government officials in finalizing implementation plans and site selection. The company closely aligns its engineering and technical centers with its customers' operations. Currently, Tenneco Automotive supports its global ride and emission control operations with 12 engineering centers worldwide, operating under one central management team.

The decision to establish an engineering center in China reflects the growth we anticipate in this market and shows our commitment to our customers and partners," said Tim Donovan, executive vice president and managing director, international group. "We are excited about the prospects of an in-country engineering center, bringing our global capabilities directly to our customers in China, and being able to deliver services at the speed that this market demands."

Tenneco Automotive established its first joint venture in China in 1995 and is currently China's number one supplier of exhaust systems to original equipment manufacturers, excluding pass-through catalytic converters. Reflecting its strong growth in China, the company recently announced two new joint ventures:

  • Chongqing Walker Exhaust System Co., Ltd. - a joint venture with China-based Chengdu Lingchuan Mechanical Plant to supply emission control products and systems to Changan Ford Co. Ltd.
  • Walker-Eberspächer Automotive Exhaust System Co., Ltd, -- a joint venture with Eberspächer International GmbH to manufacture and distribute emission control products and systems for BMW and Audi vehicles produced in China.

The company also has joint venture operations in Shanghai, Dalian and Beijing as well as a just-in-time manufacturing facility in Changchun. The company reported 51 percent year-over-year revenue growth in China for 2003.

Tenneco Automotive is a $3.8 billion manufacturing company with headquarters in Lake Forest, Illinois and approximately 19,200 employees worldwide. Tenneco Automotive is one of the world's largest designers, manufacturers and marketers of emission control and ride control products and systems for the automotive original equipment market and the aftermarket. Tenneco Automotive markets its products principally under the Monroe®, Walker®, Gillet® and Clevite® Elastomer brand names. Among its products are Sensa-Trac® and Monroe Reflex® shocks and struts, Rancho® shock absorbers, Walker® Quiet-Flow® mufflers, Dynomax® performance exhaust products, and Clevite® Elastomer noise, vibration and harshness control components.

This press release contains forward-looking statements. Words such as "will," "beginning" 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); and (iv) 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.

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

Tenneco Automotive, Investor Relations
Leslie Hunziker,