Dana Corporation to Supply Advanced Traction Technologies for Exciting New MG Sports Car

TOLEDO, Ohio, Nov. 4, 2002; Dana Corporation announced today that it has been selected to supply advanced traction technologies -- including complete drive axle and Hydratrak® differentials -- for MG Rover's new high-performance, V8-powered sports car, the MG XPower SV, as well as the high-performance V8-supercharged version, the XPower SV Club Sport.

The patented Hydratrak limited-slip differential provides improved handling and enhanced safety for drivers by incorporating a cartridge-type fluid coupling, which progressively and smoothly increases torque transfer to the wheel with traction. This is in direct response to the reactive speed difference between the wheel with traction and the opposing, faster rotating wheel -- the wheel that is slipping. Thus, the more one wheel slips, the more useful traction that is transferred to the opposing wheel.

Dana's production of the axle and differential will begin first quarter of 2003 in support of MG's mid-2003 product launch.

Dana Chairman and CEO Joe Magliochetti said, "This is an exciting piece of business that demonstrates Dana's ability to deliver powerful, high- performance products capable of meeting the most stringent of driving conditions. It also contributes to our 'Transformation 2005' goal of aggressively growing business outside the United States."

Bill Carroll, president of Dana's Automotive Systems Group, said, "Dana was selected as the preferred supplier based on the capabilities and performance of its axle that incorporates the new Hydratrak® differential. Our global engineering expertise has enabled us to produce a speed sensing limited-slip differential that offers enhanced performance and handling characteristics.

Benefits of the Hydratrak® limited-slip differential include:

Speed sensitive, with innovative fluid coupling; Compatibility with ABS and traction control; Progressive build-up of torque transfer as wheel speed difference increases; Increased flexibility for tuning torque transfer characteristic to suit customer requirements; Suitability for front wheel-drive, rear wheel-drive, or inter-axle diff for permanent 4WD application; Significantly enhanced vehicle stability, traction, and cornering "feel"; and Cost effectiveness relative to other speed-sensitive systems The MG XPower will feature an independent wishbone suspension and a front engine/rear-wheel-drive layout that produces outstanding handling balance. The XPower SV and SV Clubsport also will include advanced braking systems that harness the power outputs of the 4.6-L V8 and the 5.0-L Supercharged V8.