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Dana To Sell Global Clutch Business To Eaton

9 July 1997

Dana To Sell Global Clutch Business To Eaton

    TOLEDO, Ohio, July 9 -- Dana Corporation
announced today that it has reached an agreement to sell its worldwide
vehicular clutch business to Eaton Corporation for $180 million.
The move is the latest in a series of strategic transactions aimed at
sharpening Dana's focus on its core business units.
    Under terms of the agreement, Eaton will purchase the Spicer Clutch
operations, which manufacture new and rebuilt medium/heavy-duty clutches for
original equipment manufacturers.  The transaction will result in an after-tax
gain of approximately $70 million to Dana (67 cents per share) to be
recognized upon closing.
    The transaction is subject to completion of due diligence and customary
approval of appropriate regulatory agencies.
    The assets include Dana's Auburn, Ind., manufacturing operation and
laboratory; manufacturing and assembly operations in Hallam, Australia;
Gravatai, Brazil; and Tipton, England; and remanufacturing operations in
Harrisburg, N.C.; Oklahoma City; Brackley, England; and Hoevelaken, Holland.
Employment at the operations involved is approximately 670 people.  Sales at
these facilities are estimated at $179 million for 1997.
    Under a marketing agreement with Eaton, Dana will continue to market and
supply independent distribution customers with new and remanufactured clutches
on a non-exclusive basis.
    Dana Chairman Southwood J. Morcott said the sale will add further focus to
Dana's efforts to grow its core business units, while at the same time
providing the people of Spicer Clutch with a sound growth opportunity.
    "This transaction is further evidence of Dana's resolve to grow its core
businesses," he said.  "We are committed to improving the focus and agility of
these units in order to better serve our global customers."  Dana's core
businesses are axles, driveshafts, structural components, sealing products,
filtration products, industrial products, engine products, and leasing
services.
    "We believe Eaton can provide a solid environment for the future growth of
the clutch operations and the people who work in them," Morcott added.  "We
sincerely appreciate the efforts and contributions these people have made to
Dana over the past half century."
    The sale is the latest in a series of strategic moves in 1997 that has
included Dana's acquisition of Clark-Hurth Components and the cylinder liner
and piston ring operations of SPX Corporation.  Other strategic moves included
the divestiture of Dana's European warehouse distribution facilities and the
announced sale of Dana's global hydraulic cylinder operations.  Also today,
Dana announced an agreement to purchase Eaton's global axle and brake
business.
    Headquartered in Cleveland, Eaton Corporation is a manufacturer of
products for the industrial, vehicular, construction, commercial, and
aerospace markets.
    Dana Corporation is a global leader in the engineering, manufacture and
distribution of products and systems for the vehicular, industrial, and off-
highway markets. Its leasing services operation was a recipient of the 1996
Malcolm Baldrige National Quality Award.   Founded in 1904 and based in
Toledo, Ohio, Dana operates facilities in 30 countries with more than 48,000
people.  Its 1996 sales were $7.7 billion.  It has more than 40 product
research and development centers worldwide.  The Internet address for Dana's
 home page is http://www.dana.com.

SOURCE  Dana Corporation