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Dana Corporation, National Automotive Center Sign Agreement to Advance New Vehicle Technologies

DETROIT, March 8 -- Dana Corporation and the National Automotive Center (NAC) announced today that they have signed a Cooperative Research and Development Agreement (CRADA) to help develop key technologies for the U.S. Army's Family of Medium Tactical Vehicles (FMTV).

Dana has exclusive rights, through a licensing agreement with Permo-Drive Technologies, Ltd., to produce the Permo-Drive(R) RDS(TM) Regenerative Drive System technology for FMTVs. Under the initial application of the CRADA, Dana will continue to work with Permo-Drive to refine the system as the foundation technology of Dana's Intelligent Hydraulic Drive(TM) system.

The Intelligent Hydraulic Drive system is intended for use in future FMTVs, to be supplied by specialty-equipment manufacturer Stewart & Stevenson of Sealy, Texas. However, the ultimate goal is to expand the application of the CRADA to develop other emerging technologies for implementation into military and commercial markets.

"The spirit of this agreement is innovation through collaboration and hard work -- values that we at Dana share with our partners at the NAC and Permo- Drive," said Michael J. Burns, Dana president and chief executive officer. "The CRADA enables Dana to combine its unique knowledge with the expertise of non-traditional partners to generate new ideas that will enable tomorrow's key vehicle technologies."

"Dana technology will add a new dimension to our collaborative research initiatives," stated Dennis J. Wend, director of the NAC. "Working together, we see a number of innovative solutions for future military applications."

Messrs. Burns and Wend signed a ceremonial CRADA today at the 2004 SAE World Congress in Detroit.

The Intelligent Hydraulic Drive system is a hydraulic regenerative-braking and propulsion-assist system suitable for most medium- and heavy-duty vehicles. When a vehicle accelerates, considerable energy is required. With a conventional system, that energy is lost when the vehicle decelerates.

Utilizing this technology, the energy normally lost during braking is stored and selectively released as an acceleration boost to bring the vehicle back to the desired speed. Benefits include significant increases in fuel economy, substantially improved brake life, greatly enhanced acceleration, and reduced emissions. The technology also has the potential to increase the load-carrying capacity of the FMTV.

"This agreement gives Dana an excellent framework to continue working with the NAC and Permo-Drive to enhance the Intelligent Hydraulic Drive technology while developing a range of new innovations," said Mike Laisure, president of Dana's Engine and Fluid Management Group. "The CRADA also creates an unrivalled team of the best engineers in the private and public sectors. We are excited to work with these partners to advance the next generation of cleaner, more efficient vehicles."

Aside from the Intelligent Hydraulic Drive system, the CRADA may also assist Dana and the NAC in several other innovations currently in development. These include new fuel-cell technologies, advanced cooling systems, and a proprietary microwave plasma technology.

The microwave technology has broad applicability in the area of materials processing including rapid heating of metals. Dana's process uses plasma at atmospheric pressure to absorb intense heat generated by microwaves to execute brazing, hardening and a number of other processes in a fraction of the time normally required.

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 vehicles. Delivering on a century of innovation, the company's continuing operations employ approximately 45,000 people worldwide dedicated to advancing the science of mobility. Founded in 1904 and based in Toledo, Ohio, Dana operates technology, manufacturing, and customer-service facilities in 30 countries. Sales from continuing operations totaled $7.9 billion in 2003. Dana's Internet address is www.dana.com .