Tecumseh Products Company Reports Fourth Quarter 2001 Net Income Before Nonrecurring Charges of $0.54 Per Share

Consolidated net income for the fourth quarter of 2001 amounted to

$6.1 million, or $0.33 per share, compared to net income of $14.8 million, or

$0.79 per share in the fourth quarter of 2000. Included in 2001's fourth

quarter results are nonrecurring charges of $6.1 million ($3.9 million or

$0.21 per share net of taxes) relating to a relocation of certain component

part and engine manufacturing capabilities from domestic plants to the Czech

Republic facilities. Consolidated net sales in the fourth quarter of 2001

decreased to $299.1 million from $358.5 million in 2000.

Full year 2001 net income amounted to $42.8 million, or $2.30 per share,

on sales of $1,398.9 million, compared to net income of $66.1 million, or

$3.44 share, on sales of $1,649.9 million in 2000. Nonrecurring charges

related to the cost of an early retirement incentive program and to the Engine

& Power Train Group charges referred to above had the effect of reducing 2001

earnings by $22.8 million net of tax, or $1.23 per share.

The lower 2001 results reflected continued weakness in sales and earnings

in the Company's two major business segments, Compressor Products and Engine &

Power Train Products.

Pump Business

Pump Business sales in the fourth quarter of 2001 declined to

$19.2 million from $21.4 million in the fourth quarter of 2000. Sales for the

year ended December 31, 2001 decreased to $113.4 million compared to

$117.3 million in 2000. Operating income in the fourth quarter of 2001

amounted to $0.9 million, compared to $2.5 million in the same period of 2000.

Full year operating income amounted to $11.6 million in 2001 compared to

$14.7 million in 2000. Decreased retail sales activity in the water gardening

market resulting from a soft economy combined with slight decreases in sales

for industrial and commercial applications were the primary reasons for the decline in sales and profits.