Emerson, Dana Corporation Pursue Joint Development of Advanced Vehicle Technology

TOLEDO, Ohio, Oct. 21, 2002; Dana Corporation and Emerson announced today that they have reached an agreement in principle to jointly develop advanced actuator systems for the automotive market. Details of the relationship are pending a final agreement expected soon.

Actuators are small power motors that control a variety of vehicle functions, from ride and stability to power train and steering systems. Advanced electric actuator systems offer increased efficiency, cost-savings and environmental benefits compared to mechanical and hydraulic systems.

The Dana-Emerson partnership will initially focus on the development of a series of actuator products and related components for the global electric steering market. Potential products will include motors and electronic control units, and electric power packs for electro-hydraulic power steering (EHPS) and electric-power steering (EPS) applications.

"We're tremendously enthused by the potential to provide our customers with technologies that will be critical to the next generation of vehicles," said Dana President of Technology Development & Diversified Products Chuck Heine. "This partnership reflects the strong commitment Dana and Emerson have to developing customer-driven technologies that will support improved fuel economy, environmental advancements, and enhance overall performance."

Jim Lindemann, Executive Vice President of Emerson Motor Technologies, added that, "Emerson and Dana will take advantage of the complementary expertise we offer. Dana's significant global automotive capabilities and presence fit well with Emerson's leading position in advanced motor technology and manufacturing. We believe this combination will deliver valuable solutions to our customers."

Dana and Emerson have identified significant market opportunities with selected original equipment and Tier I customers in both EHPS and EPS totaling nearly $500 million, providing a strong starting position to broaden their partnership. With completion of the partnership details and regulatory consent, headquarters would be established in Feltham, U.K., with additional manufacturing operations in Slovakia.

St. Louis-based Emerson is a global leader in bringing technology and engineering together to provide innovative solutions to customers in electronics and telecommunications; process control; industrial automation; heating, ventilating and air conditioning; and appliances and tools. Sales in fiscal 2001 were $15.5 billion.

Dana Corporation is one of the world's largest suppliers of components, modules and complete systems to global vehicle manufacturers and their related aftermarkets. Founded in 1904 and based in Toledo, Ohio, the company operates some 300 major facilities in 34 countries and employs approximately 70,000 people. The company reported sales of $10.3 billion in 2001. Dana's Internet address is www.dana.com .