Dana Corporation Comments On Credit Ratings

    TOLEDO, Ohio, May 30 Dana Corporation today
commented on recent ratings actions. On May 10, Standard & Poor's affirmed
Dana's corporate credit and senior debt ratings at BBB, while today Moody's
Investors Service lowered Dana's senior debt ratings to Ba1.
    
    "We believe that the disparity in the opinions of the two agencies
reflects their differing views regarding the impact of recent market declines
on Dana," said Dana's Chief Financial Officer Bob Richter. "In response to
sharp declines in light- and heavy-truck production, we have made significant
reductions in our workforce and will continue with cost-reduction measures to
improve operating performance.

    "During the first quarter, we also took a number of decisive actions to
strengthen our liquidity and enhance our financial flexibility.  We expanded
our revolving credit facility by $250 million to a total of $1.25 billion and
reduced our borrowings under that facility by $400 million through the
creation of an accounts receivable securitization program.  In addition, we
reduced inventory by more than $100 million," Mr. Richter continued.

    In May, Dana announced agreements for the sale of its Chelsea Power Take-
off and Glacier Industrial Bearings businesses. "We now anticipate that
proceeds from divestitures will exceed $225 million for the year, surpassing
earlier estimates," Mr. Richter said. "Going forward, we remain committed to
maximizing cash flow and reducing debt."