TENNECO INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Year Ended December 31,   2008     2007     2006  
    Shares     Amount     Shares     Amount     Shares     Amount  
(Millions Except Share Amounts)      
Common Stock                                                
Balance January 1     47,892,532     $ —       47,085,274     $ —       45,544,668     $ —  
Issued (Reacquired) pursuant to benefit plans     238,982       —       209,558       —       (104,240 )     —  
Stock options exercised     182,976       —       597,700       —       1,644,846       —  
Balance December 31     48,314,490       —       47,892,532       —       47,085,274       —  
                                                 
Premium on Common Stock and Other Capital Surplus                                                
Balance January 1             2,800               2,790               2,776  
Premium on common stock issued pursuant to benefit plans             9               10               14  
Balance December 31             2,809               2,800               2,790  
                                                 
Accumulated Other Comprehensive Loss                                                
Balance January 1             (73 )             (252 )             (281 )
Adoption of recognition provision of Statement of Financial Accounting Standard (SFAS) No. 158, net of tax of $31 million             —               —               (59 )
Measurement date implementation of SFAS No. 158, net of tax of $7 million             —               14               —  
Other comprehensive income (loss)             (245 )             165               88  
Balance December 31             (318 )             (73 )             (252 )
                                                 
Retained Earnings (Accumulated Deficit)                                                
Balance January 1             (2,087 )             (2,072 )             (2,118 )
Net income (loss)             (415 )             (5 )             49  
Measurement date implementation of SFAS No. 158, net of tax of $2 million             —               (8 )             —  
Other             —               (2 )             (3 )
Balance December 31             (2,502 )             (2,087 )             (2,072 )
                                                 
Less — Common Stock Held as Treasury Stock, at Cost                                                
Balance January 1 and December 31     1,294,692       240       1,294,692       240       1,294,692       240  
Total           $ (251 )           $ 400             $ 226  

The accompanying notes to consolidated financial statements are an integral
part of these statements of changes in shareholders’ equity.