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                                                                   Exhibit 99.2

NEWS RELEASE

Contact:          Neil Geary (203) 863-1073
                  Barb Posner (203) 863-1374

         Tenneco Announces Major Strategic Actions to Enhance Value

         GREENWICH, Conn., July 21, 1998 -- Tenneco today announced three major
strategic actions designed to enhance shareowner value. First, the company
stated that its Board of Directors has authorized management to develop a broad
range of strategic alternatives to unlock the value of its businesses and to
include among the options the separation of its automotive and packaging
businesses into stand-alone entities.

   Second, the company underscored its determination to accelerate
the separation of its containerboard packaging business from its
specialty packaging business. The options for separation might include a sale,
merger, spin off, initial public offering or strategic alliance, among others.

   Finally, the company outlined a broad program focused on reducing structural
costs, which is expected to realize approximately $100 million in annualized
savings by reducing overhead and operating expenses.

    Note:  Tenneco also released second quarter earnings today.  See related
 news release.

         "These announcements are the latest steps in Tenneco's five-year
transformation," said Dana G. Mead, Tenneco chairman and chief executive
officer. "Over that time, Tenneco has carefully streamlined itself, capturing
value for shareholders in the divestiture of several strong businesses. That
process included realizing over $13 billion of cash proceeds, which enabled us
to pay down over $9 billion in debt, spin off $1.5 billion of subsidiary shares
to our shareholders, repurchase over $1.0 billion in stock, and build our
automotive parts and packaging businesses with $3.0 billion in strategic
acquisitions.

         "We are now at a point in our evolution where we must again ensure that
the company is structured to provide the greatest value to our shareowners. We
will study carefully the full range of structural alternatives available to us
and do so as expeditiously as possible. We intend to make our recommendations to
the Board this fall.

         "Last year, we said that we would exit the containerboard business when
market conditions were optimal. Today, because of aggressive cost reduction
programs at our mills and box plants, Tenneco is one of the most efficient
producers in this industry. We believe the timing is now right to capture the
value of this business, especially in light of industry consolidation and the
anticipated improvement in longer term market conditions," said Mead.


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         With annual sales of $1.5 billion, Tenneco Packaging's containerboard 
business includes four containerboard mills, over 70 corrugated facilities and 
nearly one million acres of owned or controlled timberland throughout the U.S.

         The cost reduction program that Tenneco announced today is intended to
reduce structural costs, both administrative and operational. This new
initiative is expected to result in approximately $100 million in incremental
annualized savings not conditional on any strategic actions. Even greater
savings could result, depending on the outcome of the strategic study announced
today. Over the last three years, Tenneco has realized approximately $1 billion
in cost reductions, approximately $375 million of which has been translated into
net operating income. Additionally, as previously reported, Tenneco Automotive's
1997 global restructuring will provide over $80 million in cost savings by the
end of 1998. Containerboard packaging's two-year mill cost reduction program
should total $85 million by year-end.

         Mead said, "Two years ago when Tenneco emerged in its current
configuration and committed to a strategy of building shareowner value in our
two major companies - automotive and packaging, I promised that we would not
only continue to build value within the current structure, but would also remain
open to alternatives for ultimate separation of the businesses, or other options
that would unlock yet additional value. In my view, and in that of our Board of
Directors, the time is now right to fully and actively explore those other
actions. That is the essence of the announcements we have made today."

         Tenneco is an $8 billion global manufacturing company headquartered in
Greenwich, Conn., with 50,000 employees worldwide. The company is one of the
world's largest producers and marketers of ride control and exhaust systems and
products, which are sold under the Monroe(R) and Walker(R) global brand names.
Among its products are Sensa-Trac(R) shocks and struts, Rancho(R)shock
absorbers, Walker(R) Quiet-Flow(TM) mufflers and DynoMax(TM)performance exhaust
products, and Monroe(R) Clevite(TM) vibration control components. Tenneco
Packaging is among the world's leading and most diversified packaging companies.
Among its products are Hefty(R) trash bags, Hefty OneZip(R) and Baggies(R) food
storage bags, E-Z Foil(R) single-use aluminum cookware and Hexacomb(R) paper
honeycomb products.

         Several statements in this press release are forward-looking and are
identified by the use of forward-looking words and phrases, such as "to
develop," "to accelerate," "is expected," "intend," "intended," "timing is now
right," "time is now right," "could result," "will provide," "should," and
"explore." These forward-looking statements are based on the Company's current
expectations. Because forward-looking statements involve risks and
uncertainties, the Company's plans, actions and actual results could differ
materially. Among the factors that could cause 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



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availability or costs; (iv) changes in consumer demand and prices, including
decreases in demand for Company products and the resulting negative impact on
the Company's revenues and margins from such products (v); the cost of
compliance with changes in regulations,including environmental regulations; (vi)
workforce factors such as strikes or labor interruptions; (vii) material
substitutions and increases in the costs of the Company's raw materials; (viii)
the Company's ability to integrate operations of acquired businesses quickly and
in a cost-effective manner; and (ix) the timing and occurrence (or
non-occurrence) of transactions and events which may be subject to circumstances
beyond the Company's control.