S&P Reaffirms Credit and Debt Ratings for Dana

Corporation and Dana Credit Corporation Toledo, Ohio (ots-PRNewswire) - Standard & Poor's Corporationhas affirmed its "A-" corporate credit rating and its "A-" seniorunsecured debt rating on Dana Corporation (NYSE: DCN), andremoved the ratings from its CreditWatch. The ratings of Dana'sleasing subsidiary, Dana Credit Corporation, were also reaffirmed"A-" and removed from CreditWatch. In making the announcement, Standard & Poor's said, "Theratings reflect Standard & Poor's expectation that managementwill remain committed to debt reduction and succeed in restoringdebt to capital to about 40 percent in the next 12 to 18 months.Dana Corporation has been restructuring and realigning itsoperations in the past three years to enhance its businessprofile. As part of this process, the company has bought and solda number of operations. As a result, Dana Corporation's adjusteddebt leverage was about 50 percent at year-end 1998. "Earlier this year, Dana announced that its Board hadauthorized a $350 million stock repurchase program. The ratingsaffirmations assume that Dana will offset the impact of any sharerepurchase under this program with proceeds from asset sales andthat it will use free cash flow to repay debt." In April, Dana unveiled its Five-Point Plan, a tactical linkto the company's overall strategic plan that includes therepurchase of stock as the company generates cash. Jack Simpson, Dana chief financial officer said, "The Five-Point Plan is key to enhancing shareholder value. We areextremely pleased that Standard & Poor's has confidence in ourability to manage this multi-faceted program within the contextof our financial targets and debt-rating objectives. "The Five-Point Plan is a disciplined, comprehensive approachthat will improve our operating performance and strengthen ourbalance sheet," Simpson said. 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. Consistent with this Plan, Dana last week announced itsintention to sell the first two of a series of businessesidentified for disposition. The businesses identified have totalannual sales of approximately $850 million. In the largest divestiture in Dana's history, the companyannounced plans to sell its Warner Electric Industrial ProductsGroup and part of its Warner Electric Industrial Motors andControls Group. The company also announced its intention to sellits Commercial Vehicle Cab Systems Group. 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 Warner operations to be divested had combined sales ofapproximately $360 million in 1998, and employ approximately3,000 people at 18 major manufacturing and assembly facilitiesthroughout the world. The Commercial Vehicle Cab Systems Group is a $91 millionmanufacturer of truck mirrors, windshield wiper systems and HVACcontrols. 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 DanaCorporation, (USA) 419-535-4813 Company News On-Call:http://www.prnewswire.com/comp/226839.html or fax, (USA) 800-758-5804, ext. 226839 Web site: http://www.dana.com

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