Dana Corporation Completes Sale of Engine Management Aftermarket Operations

TOLEDO, Ohio, June 30 -- Dana Corporation announced today that it has completed the sale of a significant portion of the Engine Management operations of its Automotive Aftermarket Group to Standard Motor Products a manufacturer and distributor of automotive replacement parts.

Proceeds from the transaction totaled $121 million. Of this total, 75 percent (or approximately $91 million) was cash, with the balance split evenly between debt and equity. The final price is subject to normal post- closing adjustments based on the net book value of the assets and liabilities at the close of business on June 30, 2003. Dana recorded substantially all of the expected charges associated with this transaction in the fourth quarter of 2002 concurrent with its decision to sell the business.

The sale included nine U.S. operations employing approximately 1,900 people. Combined 2002 sales at these operations were approximately $290 million. The facilities involved in the transaction are located in Branford and Guilford, Conn.; Franklin Park, Ill.; Argos and Mishawaka, Ind.; Independence, Kan. (two facilities); Northvale, N.J.; and Nashville, Tenn.

The primary products of these operations are electronic control modules, wire and cable, fuel injectors, oxygen sensors, and voltage regulators, which are sold to customers such as NAPA, CSK Auto, O'Reilly Auto Parts, and Pep Boys.

"This transaction speaks to our emphasis on core businesses and those technologies that are central to Dana's growth strategy," said Dana Chairman and CEO Joe Magliochetti. "Although not core to Dana, we believe these Engine Management operations and the people associated with them will benefit from the expertise of Standard Motor Products, which is more focused on this segment of the aftermarket."

Credit Suisse First Boston acted as financial adviser to Dana in connection with the transaction.

Standard Motor Products is one of the oldest and most respected automotive aftermarket manufacturers in the world. The company is headquartered in Long Island City, N.Y., with more than 20 factories and distribution centers located throughout the United States, Puerto Rico, and Canada, as well as in Europe and the Far East. Prior to this transaction, Standard Motor Products employed approximately 3,300 people.

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.