Dana Corporation to Divest Global Warner Electric

Operations TOLEDO, Ohio (PROTEXT) - Dana Corporation (NYSE: DCN) todayannounced plans for the largest divestiture in its history -- thesale of its global Warner Electric Industrial Products Group andpart of its Warner Electric Industrial Motors and Controls Group. The proposed sale comes in response to recent interest frompotential buyers who expressed a desire to purchase certain ofDana's industrial operations. This is consistent with Dana'spreviously announced Five-Point Plan for continued growth andincreased profitability. Excluded from the sale will be Dana's automotive motioncontrol operations in El Paso, Texas, and Chihuahua, Mexico; itsAmerican Electronic Components, Inc., facilities servingautomotive customers, located in Elkhart, Ind.; and certainautomotive engineering and test facilities located in Ann Arbor,Mich. The Warner Electric Industrial Products Group manufacturesindustrial clutches and brakes, linear actuators, and ballbearing screws for a diverse range of applications. The WarnerElectric Industrial Motors and Controls Group produces a widerange of precision electric motors and controls, electronicadjustable speed drives, power conditioning equipment, andvoltage and lighting controls. The groups had combined sales of approximately $360 million in1998 and employ approximately 3,000 people at 18 majormanufacturing and assembly facilities throughout the world. "This divestiture is important not only because of its size,but also because it enables us to more effectively focus ourvehicular electronic capability. It is another example of Dana'sresolve to divest non-strategic assets -- one of the elements ofour Five-Point Plan," said Joe Magliochetti, Dana president andCEO. Yesterday, Dana announced a similar decision to sell itsCommercial Vehicle Cab Systems Group, a $91 million manufacturerof truck mirrors, windshield wiper systems and HVAC controls. InMarch, Dana announced an agreement to sell most of its constant-velocity joint business to GKN plc as part of a strategic globalalliance with that company. In April, Dana unveiled its Five-Point Plan, which is atactical link to the company's overall strategic plan. The Five-Point Plan provides elements for continued growth andprofitability over the next 12 to 18 months. The plan includes the following five tactics: * Grow while focusing on returns and maintaining financialdiscipline; * Seek strategic, bolt-on acquisitions at reasonablevaluations; * Divest non-strategic and non-performing operations; * Repurchase stock as the company generates cash; and * Complete integration efforts and realize synergy savings. Mike Plumley, president of Dana's Industrial Group, said,"Warner Electric has been an important contributor to Dana, andwe owe a debt of gratitude to our people from those divisions. Iam confident Warner will grow further with a company that is morefocused on industrial products." Southwood J. Morcott, Dana chairman, said, "With thisdecision, Dana is better positioned to leverage the resources ofour vehicular electronic controls and fluid system products tobetter serve our customers and provide additional strategicgrowth." Dana has retained the investment-banking firm of J.P. Morgan &Co. Inc. to assist in the transaction. Dana Corporation is one of the world's largest independentsuppliers to vehicle manufacturers and their relatedaftermarkets. Founded in 1904 and based in Toledo, Ohio, thecompany operates some 330 major facilities in 32 countries andemploys more than 86,000 people. The company reported sales of$12.5 billion in 1998. Dana's Internet address is www.dana.com .ots Original Text Service: Dana Corporation Internet:http://www.newsaktuell.de Contact: Gary Corrigan of Dana, 419-535-4813 Company News On-Call:http://www.prnewswire.com/comp/226839.html or fax, 800-758-5804,ext. 226839 Web site: http://www.dana.com

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