Dana Second-Quarter Sales, Earnings at Record Highs /

Sales Top $3.4 Billion / Net Income Jumps 19% Toledo, Ohio (PROTEXT) - Dana Corporation (NYSE: DCN) todayannounced record second-quarter sales of $3.4 billion, anincrease of more than 5 percent over the same period last year.Operating profits for the quarter rose to $195 million, andearnings per share on an operating basis were $1.17, in line withconsensus estimates. Reported net income for the period rose 19 percent to a record$190 million, and earnings per share for the quarter rose 18percent to $1.14. These figures include non-recurring, after-taxcharges of $5 million (3 cents per share) for the second quarterof 1999 and $7.5 million (4 cents per share) in 1998. Dana's six-month consolidated sales were $6.8 billion, up 5percent over the same period last year. Net income for the firsttwo quarters was $352 million, an increase of 17 percent over thefirst six months of 1998. Earnings per share on a diluted basisalso rose 17 percent for the first half of the year to $2.10. Dana Chairman Southwood J. Morcott said, "This was our bestquarter ever in terms of sales volume, net income, and earningsper share. These record results are the product of continuedfocus on realizing acquisition synergies, as well as disciplinedpursuit of our Five-Point Plan. By focusing on operationalimprovements while growing our businesses, we have seen excellentprofit growth." "We're seeing the effects of the successful integration of ourrecent acquisitions, as well as continued strength in many of ourcore businesses. As a result, all key operating ratios have shownimprovement," said Joe Magliochetti, Dana president and CEO."Organic growth is up 8 percent in the Heavy Truck Group and 7percent in the Automotive Systems Group. This is due in part tovery robust North American light-truck and SUV and medium- andheavy-duty truck markets. In total, North American sales were upnearly 9 percent over the second quarter of last year." Return on sales for the second quarter increased to 5.7percent, compared with 5.2 percent a year ago. For the quarter,all strategic business units except the Off-Highway Systems andIndustrial groups showed increases in operating margin. Operating margins improved to 9.9 percent, 90 basis pointshigher than the second quarter of 1998, mainly due torestructuring and rationalization efforts, as well as ongoingcost-control initiatives. The quarter also saw aggressive implementation of the otherelements of Dana's Five-Point Plan, unveiled in April. The plan,a tactical link to the company's overall strategic plan, providesa blueprint for continued growth and increased profitability. It includes the following five tactics: * Grow while focusing on returns and maintaining financial

discipline; * 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. In keeping with the plan, the company has announced plans tosell its Commercial Vehicle Systems Group, most of its WarnerElectric industrial products businesses, its Sierra aftermarketmarine and power equipment operations, and its AustralianTruckline Parts Centres. These businesses had 1998 sales of morethan $530 million and are part of an overall plan to divestoperations with annual sales of approximately $850 million. During the quarter, the company also launched a program torepurchase its stock under a plan approved by the Board ofDirectors in April. The authorization, in effect until October2000, allows the company to repurchase up to $350 million of itscommon stock. Finally, Dana's plan for $120 million in new automotiveaftermarket operational and sourcing synergies this year is aheadof schedule year-to-date and on target for the full year. Todate, the company has closed six manufacturing facilities and sixdistribution centers -- with a seventh distribution point slatedfor closure this month. By the end of the year, Dana plans toclose 15 manufacturing facilities and 30 distribution points. NEW BUSINESS, PRODUCTS ANNOUNCED During the second quarter, Dana announced more than $150million in new aftermarket business and $570 million in newstructural business. The latter includes a multi-year contract --beginning in model year 2002 -- for the global frame platformsfor the Chevrolet S-10 and Isuzu pickup trucks. Dana also was selected to supply complete, heavy-duty chassissystems for Western Star Trucks Inc. In the spirit of Dana'sRolling Chassis(TM) module, the systems will include a ladderassembly frame, dressed front and rear axles, suspension,steering gear, electric and pneumatic connection harnesses, andother components. They will be delivered just in time, insequence, to Western Star's new facility in North Charleston,S.C. Delivery is expected to begin late this year, with fullproduction levels estimated at 6,000 units annually. Dana also unveiled a revolutionary new trailer module.Developed in alliance with Neway Anchorlok International, Inc.,Dana's iPac module consists of an air-ride suspension, axles,wheel ends, and brakes. The innovative module offers improvedperformance, durability, assembly, and serviceability. COMPANY LAUDED FOR PERFORMANCE During the quarter, Dana was recognized as a Most AdmiredManufacturer in the United States in the June 1999 issue of startmagazine, a business publication focused on technological issues.In recognizing Dana, the magazine emphasized Dana's strategicobjectives, focus on technology, employee involvement, andreputation. Also, Dana was rated No. 1 among the world's 44 best-performing automotive suppliers in a study based on measure ofearnings, revenue growth, stock price, and return on assets. Theresults of the study, conducted by automotive consulting firmA.T. Kearney, Inc., were published in the June 21 issue ofAutomotive News. The companies studied were selected because oftheir focus on improved productivity of company assets, increasedearnings, and aggressive growth. Dana common stock was listed as one of the most popular andwidely held issues among investment clubs nationwide. The April1999 issue of Better Investing magazine ranked Dana common stock31st in terms of the number of shares held by investment clubs.Dana also ranked 39th in total value of shares held by investmentclubs and 55th in the number of investment clubs holding thestock. The May 1999 issue of Better Investing featured a coverstory of Dana as a "Stock to Study." BOARD APPROVES QUARTERLY DIVIDEND Dana's Board of Directors today approved a quarterly dividendof $0.31 per share payable Sept. 15, 1999, to shareholders ofrecord Sept. 1, 1999. This will mark Dana's 247th consecutivedividend without a decreased or missed payment. 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 . Certain statements contained herein constitute "forward-looking" statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995. These statements involveassumptions, uncertainties, and risks, and Dana's actual futureresults, performance, or achievements may differ materially fromthose expressed or implied in these statements. Among the factorsthat could affect Dana's actual results are the ability of itscustomers to achieve projected vehicle sales levels, the cyclicalnature of the automotive industry, and economic conditions.Additional factors are detailed in Dana's public filings with theSecurities and Exchange Commission. Dana does not undertake toupdate any forward-looking statements contained herein. Dana Corporation (in millions, except per share amounts) Unaudited

Three Months Ended June 30

1998

1999 Sales

$

3,236.6

$ 3,407.6 Net Income

160.2

190.2 Net Income Per Common Share -

Basic

$0.97

$1.15

Diluted

0.96

1.14 Average Shares Outstanding -

For Basic EPS

164.6

165.9

For Diluted EPS

167.0

167.4

Six Months Ended June 30

1998

1999 Sales

$

6,469.4

$ 6,788.2 Net Income

300.8

351.7 Net Income Per Common Share

Basic

$1.83

$2.12

Diluted

1.80

2.10 Average Shares Outstanding

For Basic EPS

164.6

165.9

For Diluted EPS

167.0

167.4 otsOriginal Text Service: Dana Corporation Internet:http://www.newsaktuell.de Contact: Greg Smietanski of Dana, (inthe USA) 419-535-4636 Company News On-Call:http://www.prnewswire.com/comp/226839.html or fax, (in the USA)800-758-5804, ext. 226839 Web site: http://www.dana.com

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