Outsource Dana Corporation Announces Intent to Outsource Production of Axle Components to Sypris Solutions, Inc.

TOLEDO, Ohio, Sept. 4 -- Dana Corporation announced today that it has signed a letter of understanding to sell certain production assets of Dana's Heavy Vehicle Technologies and Systems Group to Sypris Solutions, Inc. and to enter into a long-term supply agreement with Sypris for the related axle components.

The proposed asset sale includes Dana's manufacturing facility in Morganton, N.C., and production assets from facilities in Toluca, Mexico; Glasgow, Ky.; and Humboldt, Tenn. Approximately 600 employees in Morganton and Toluca would be transferred to Sypris as part of the transaction.

The transaction is subject to the execution of definitive agreements, approval by Dana's board of directors, applicable regulatory approvals, and other customary closing conditions.

Nick Cole, president of Dana's Heavy Vehicle Technologies and Systems Group, said, "Divesting these non-core heavy vehicle assets is consistent with Dana's long-term strategy of focusing on core products and processes. Outsourcing these non-core commodities will help reduce our fixed investment without compromising customer service, key products, or top-line growth potential."

Norm Boisvert, vice president, Commercial Vehicle Systems, said, "The people at Morganton and Tolcua have been important contributors to Dana's Commercial Vehicle Systems group, and we are confident that they will have a positive long-term opportunity to grow and prosper with Sypris."

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 approximately 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.

Certain statements contained in this release constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent Dana's expectations based on our current information and assumptions. Forward-looking statements are inherently subject to risks and uncertainties. Dana's actual results could differ materially from those which are anticipated or projected due to a number of factors. These factors include Dana's ability to complete the proposed asset sales and supply agreement with Sypris as contemplated, the ability of Sypris to perform the supply agreement as contemplated, and other factors set out in our public filings with the Securities and Exchange Commission. Dana does not undertake to update any forward-looking statements contained in this release and other factors set out in our public filings with the Securities and Exchange Commission. Dana does not undertake to update any forward-looking statements contained in this release.

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