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DESC Acquires Heavy Duty Transmission Unit from Dana Corp.

16 July 1997

DESC Acquires Heavy Duty Transmission Unit from Dana Corp.

    MEXICO CITY, July 16 -- DESC, S.A. de C.V.
(NYSE: DES; BMV: DESC) announced today that through Spicer, one of its
autoparts subsidiaries, the Group signed an Agreement to purchase the
transmission business from Dana Corp. , a partner in this
subsidiary.
    Spicer operates 15 facilities in Mexico employing more than 5,000 people.
Unik is a wholly owned subsidiary of DESC and is responsible for the Group's
autoparts operations.  Spicer is 51% owned by Unik and 49% by Dana Corp.
    Once Spicer completes this acquisition, it will be a leading independent
producer of transmission systems in North America, with a full range of
transmissions from automotive to heavy truck.
    Spicer has been manufacturing medium and heavy duty transmissions for
nearly 20 years through Transmisiones TSP, S.A. de C.V. (TSP).  In 1994,
Spicer acquired Transmisiones y Equipos Mecanicos, S.A. de C.V. (Tremec), a
manufacturer of light duty transmissions. In 1996, Spicer acquired Borg-
Warner's North American manual transmission business.   With the addition of
Dana's transmission assets, Spicer's transmission sales are expected to exceed
$400 million, making it a significant full line transmission manufacturer for
the global market.
    After the acquisition is complete, Dana's transmission operations will be
consolidated into the TSP facilities in the State of Queretaro, Mexico, from
Knoxville, TN; Jonesboro, Ark.; and Toledo, OH.  This transition period is
estimated to last approximately one year.
    This transaction is subject to customary regulatory approval.
    Dana Corporation, founded in 1904 and based in Toledo, Ohio, is a global
leader in the engineering, manufacture and distribution of products and
systems for vehicular, industrial, and off-highway markets.  Its core
businesses are axles, driveshafts, structural components (frames), sealing
products, filtration products, engine products, industrial products, and
leasing services.  The Company operates facilities in 30 countries with more
than 48,000 people.  In 1996 its sales were $7.7 billion.
    DESC, S.A. de C.V. is one of the largest industrial groups in Mexico,
based in Mexico City and through its subsidiaries is engaged in the autoparts,
chemicals, agribusiness, consumer products and real estate businesses.  The
Company has a leading position in Mexico in each business, with consolidated
sales totaling US$1.5 billion in 1996 and annual growth of 30.5%.  Operating
margin was 16.1% compared to 13.0% in 1995.  In 1996, DESC's exports accounted
for US$480 million or 32% of total sales, based primarily on autoparts and
chemical products.  EBITDA was US$321 million and net income was
US$242 million.

SOURCE  DESC, S.A. de C.V.