Dana Corporation Signs Agreement with Permo-Drive To Provide Hydraulic Regenerative Drive System for U.S. Army

TOLEDO, Ohio, May 15, 2003 -- Dana Corporation announced today it has signed a preliminary agreement with Permo- Drive Technologies Ltd. to collaborate in the exclusive supply of a Regenerative Drive System (RDS) for use in the U.S. Army's Family of Medium Tactical Vehicles (FMTV). The Army has previously notified Permo-Drive of its intent to introduce the RDS into its FMTVs as soon as late 2005.

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"We are very excited about the opportunities this agreement presents to Dana and Permo-Drive," said Dana Chairman and CEO Joe Magliochetti. "Dana's long-standing relationship with the United States military began in the 1930s, and we look forward to continuing to provide key technology for this and other future programs."

Max Bosotti, CEO of Permo-Drive, said, "Permo-Drive sees this agreement with Dana as an exciting first step for our companies to introduce this technology into the marketplace. This agreement is a further reflection of the close ties between Australia and the United States and represents a significant relationship that will ensure that the RDS technology will become a reality for both military and commercial applications on a global scale."

RDS is an innovative hydraulic regenerative braking and propulsion system suitable for most medium- and heavy-duty vehicles.

RDS benefits include substantially improved brake performance and life, an increase of up to 30 percent in fuel economy, and a significant improvement in acceleration provided by a 340-horsepower boost. The technology also has the potential to provide an increase in load carrying capacity for the FMTV due to improved braking and propulsion performance.

When a vehicle accelerates, considerable energy is required. With a conventional system, that energy is lost when the vehicle brakes to a slower speed. Utilizing the RDS, the energy normally lost during braking can be stored as hydraulic oil under pressure. This pressure can be selectively released as an acceleration boost to bring the vehicle back to the desired speed.

"Simply put, RDS harnesses the previously wasted braking energy of a vehicle and makes it available to deliver additional torque to the driveshaft during periods of peak demand," said Mike Laisure, president of Dana's Engine and Fluid Management Group. "This produces a significant improvement in vehicle fuel economy, acceleration, and braking, as well as a significant reduction in greenhouse and noxious gas emissions."

Permo-Drive Technologies Ltd., based in Ballina, New South Wales, Australia, with North American operations in Ann Arbor, Mich., is focused on the development of regenerative energy-management systems for the automotive industry. More information about the company is available on the Internet at www.permo-drive.com .

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. Dana's Internet address is www.dana.com .

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