Dana Corporation Seeks Court Approval to Amend DIP Credit Agreement

TOLEDO, Ohio, Jan. 4, 2007 -- Dana Corporation (BULLETIN BOARD: DCNAQ) announced today that in support of its ongoing reorganization and anticipated emergence from Chapter 11 bankruptcy protection later this year, the company has filed a motion in the U.S. Bankruptcy Court for the Southern District of New York, which has jurisdiction over its Chapter 11 bankruptcy proceedings under the caption In re Dana Corporation, et al., Case No. 06-10354 (BRL), seeking to amend its $1.45 billion debtor-in- possession (DIP) credit agreement. The motion is scheduled to be heard by the court on Jan. 24, 2007.

(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA)

Among other things, Dana intends to reduce the amount of its unused revolving credit facility under the DIP credit agreement to correspond with changes in its borrowing base. As it continues to sell its non-core assets, these changes will adjust the structure of Dana's debt facilities to more closely align with the needs of the business. In order to ensure that Dana continues to have adequate liquidity notwithstanding such reduction, Dana is seeking court approval for an increase in the amount available under its term loan facility from $700 million to $900 million, as well as for certain financial covenant modifications and technical changes to its DIP credit agreement. Citigroup Corporate and Investment Banking, the administrative agent for the lenders under the DIP credit agreement, has agreed to underwrite the proposed increase in the term loan facility.

"While we are pleased with the restructuring progress that Dana has achieved over the past nine months, especially under challenging market conditions, the additional funding and financing flexibility that will result from the proposed amendment position us to complete our restructuring and emerge from Chapter 11," said Dana Chairman and CEO Mike Burns. "We are also pleased with the confidence that our DIP agent, Citigroup, has demonstrated in our reorganization efforts by underwriting the proposed increase to our DIP facility."

About Dana Corporation

Dana is a leading supplier of drivetrain, chassis, structural, and engine technologies. Dana people design and manufacture products for every major vehicle and engine producer in the world. Based in Toledo, Ohio, with operations throughout the world, Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. The company's continuing operations reported sales of $8.6 billion in 2005. Dana's Internet address is: http://www.dana.com/.

Dana and certain of its U.S. subsidiaries are operating under Chapter 11 of the U.S. Bankruptcy Code as debtors in possession. Information about the bankruptcy proceedings can be found at: http://www.dana.com/reorganization. While Dana continues its reorganization under Chapter 11, investments in its securities are highly speculative. Although shares of Dana common stock continue to trade on the OTC Bulletin Board (OTCBB) under the symbol "DCNAQ," the trading prices of the shares may have little or no relationship to the actual recovery, if any, by the holders under any eventual court-approved reorganization plan. The opportunity for any recovery by holders of Dana common stock under such reorganization plan is uncertain and shares of Dana common stock may be cancelled without any compensation pursuant to such plan.

Forward-Looking Statements

Statements in this release regarding Dana's intention to reduce the amount of its unused revolving credit facility under the DIP credit agreement constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent Dana's expectations based on its current information and assumptions, but there can be no assurance that the contemplated reductions will occur. Dana does not undertake to update any forward-looking statements in this release.

Photo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

Company News On-Call: http://www.prnewswire.com/comp/226839.html