Dana Corporation Grows Presence in China Through Cooperation Agreement with Dong Feng

TOLEDO, Ohio, May 7, 2003 -- Dana Corporation announced today that its Victor Reinz sealing products group has signed a cooperation agreement with Chinese automotive gasket manufacturer, Dong Feng Gaskets Co. Ltd.

The five-year agreement provides Dana expansion into the Chinese engine- sealing market and the opportunity to offer new technology in the region. The agreement gives Dong Feng a partner with the technical background to address material, design, and manufacturing issues. Dana and Dong Feng will develop a stronger product to meet growing demands for durability, quality, and ever- changing engine architecture.

"This agreement is a decisive step toward further expansion of the Dana name into the growing Asian automotive market," said Joe Magliochetti, chairman and CEO, Dana Corporation. "Cooperation with Dong Feng will open the door for new development and financial opportunities for both companies. As the automotive market continues to grow and operate on a global level, Dana is taking the necessary steps to lead the competition in this environment."

Dana will support Dong Feng for the next five years in developing its production process for aramid-fiber-based cylinder-head gaskets. The agreement also includes the co-development of new production concepts, advisory services regarding the purchase of new production equipment, staff training, and the introduction of Dana's state-of-the-art process for surface coating of soft-material gaskets.

"Dana and Dong Feng are experienced automotive manufacturers in their respective markets and complement each other well," said Mike Laisure, president of Dana's Engine and Fluid Management Group. "We look forward to building and growing this beneficial relationship."

Dong Feng Gaskets Co. Ltd., Shiyan, China, is the gasket manufacturer of Dong Feng Motor Company, the second largest car manufacturer in China. Dong Feng currently works with major automotive companies such as Renault and Nissan, and produces a broad range of passenger cars and sport utility vehicles.

Dana Corporation is a global leader in the design, engineering, and manufacture of value-added products and systems for automotive, commercial, and off-highway vehicle manufacturers and their related aftermarkets. The company employs more than 60,000 people worldwide. Founded in 1904 and based in Toledo, Ohio, Dana operates hundreds of technology, manufacturing, and customer service facilities in 30 countries. The company reported 2002 sales of $9.5 billion.