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Dana Corporation Completes Successful Placement of Notes

    TOLEDO, Ohio, Aug. 9 Dana Corporation
announced today the completion of its private placement of $575 million and
200 million Euros in 10-year, unsecured senior notes.
    
    The notes bear a coupon of 9 percent.  The dollar-denominated notes were
sold at par, while the Euro notes were priced at 99.186 to yield at 9.125
percent.  The company will use the proceeds from the offering to repay its
outstanding short-term debt.

    Coincident with this transaction, the company entered into interest-rate
swap agreements of like notional amounts, which effectively convert the fixed
rates to floating rates.

    Commenting on the transaction, Dana Chief Financial Officer Bob Richter
said, "We were extremely pleased with the strong reception of the market to
the offering. In combination with the related interest-rate swaps, for a
modest premium over the floating rates we have been paying, the placement
represents a major step toward assuring that we will have sufficient liquidity
to address our future needs.

    "Not only do we now have a better balance of maturities within our debt
portfolio," he added, "we have also mitigated a significant portion of our
balance-sheet exposure to fluctuations in the Euro-dollar exchange rate."

    The securities offered have not been registered under the Securities Act
of 1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.