For Further Information:

Gregory G. Fehr, Kenneth A. Minor, Michael D. Picchi
Fruehauf Trailer Corporation
(317) 630-3000


      FRUEHAUF TRAILER ANNOUNCES CHAPTER 11 FILING;
                    DIRECTOR CHANGES 
                                 
      Indianapolis, Indiana -- October 7, 1996 --
Fruehauf Trailer Corporation (NYSE:FTC) announced today
that the Company and certain of its subsidiaries have
filed voluntary petitions for relief under chapter 11 of
the U.S. Bankruptcy Code in the District of Delaware.
The filings will restore liquidity by permitting
improved financing arrangements and relieving the
Company from certain funding requirements.  These
filings did not include the Company's Mexican operating
subsidiary, Fruehauf de Mexico S.A. de C.V.

      The Company announced a $55 million
debtor-in-possession financing facility provided by an
affiliate of Cerberus Partners, L.P.  The line of
credit, which is subject to court approval, will be
utilized to repay indebtedness under the Company's
Revolving Credit Facility and meet immediate and future
inventory needs, satisfy existing customer and employee
obligations, pay promptly new vendor invoices and
operate its business.  In addition, Fruehauf will
continue to manufacture, service and distribute trailers
and parts throughout its Company-owned branch and
authorized independent dealer network.

      Derek L. Nagle, President, commented: "We will
continue to provide the highest possible level of
service to our customers, including warranty and
aftermarket service and parts.  The new financing is
intended to provide the necessary liquidity to continue
business during the reorganization." 

                  Director Changes

      The Company also announced the resignations of
Raymond J. Dempsey, Anthony Miller and Richard Nevins
from the Board of Directors, effective with the
consummation of the debtor-in-possession facility. 
Thomas B. Roller, Timothy J. Wiggins, William P. Panny
and Marvin B. Rosenberg previously resigned from the
Board.  The Company will have a four member Board
consisting of Chriss W. Street, Worth W. Frederick and
two additional directors to be appointed to fill the
vacancies.  

      Fruehauf Trailer Corporation is a manufacturer of
truck trailers, producing, marketing, and servicing the
industry's widest range of dry freight van, refrigerated
van, platform, dump and liquid and dry bulk tank
trailers.  Among the largest suppliers of trailer parts
in North America, Fruehauf products are sold throughout
the truck trailer industry's largest Company-owned
dealer and authorized independent dealer network in
North America.

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