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Dana Completes Purchase of Eaton Heavy Axle & Brake Business

5 January 1998

Dana Completes Purchase of Eaton Heavy Axle & Brake Business

    TOLEDO, Ohio, Jan. 5 -- Dana Corporation today
announced that it has completed the acquisition of the heavy axle and brake
business of Eaton Corporation .
    The acquisition, which was effective Jan. 1, 1998, is the largest in
Dana's 94-year history.  Dana paid approximately $287 million in cash for the
business, which had sales of nearly $660 million in 1997.
    The facilities acquired by Dana encompass domestic manufacturing
operations in Glasgow, Ky.; Henderson, Ky.; Marion, Ohio; and Humboldt, Tenn.;
as well as facilities in Argentina, Australia, England, Mexico, and Spain.
Total employment at the acquired facilities is approximately 3,400, with
roughly two-thirds in the United States and one-third in overseas operations.
In addition, Dana acquired axle and brake technology developed at Eaton's
research and development facility in Galesburg, Mich., and interests in joint
ventures in Venezuela and India.
    The closing on the facilities in Mexico and India will occur upon
regulatory clearance in those countries.
    Dana Chairman Southwood J. Morcott said, "This is another example of
Dana's resolve to strengthen its core businesses through prudent acquisitions
that contribute to long-term shareholder value.  Dana's worldwide expertise in
axle technology made this the right acquisition."
    Rick Clayton, vice president of Dana's heavy truck components group, said,
"The acquisition is important for the heavy-truck industry.  Our global
customers supported this acquisition and will benefit through the synergies
that will occur in manufacturing processes and technology."
    As part of the transaction, Dana and Eaton entered into a marketing
agreement whereby Eaton will market a complete heavy-duty Class 8 Eaton-Spicer
drivetrain consisting of Spicer(R) steer and drive axles; Spicer(R) brakes,
Spicer(R) driveshafts, Eaton(R) Spicer(R) clutches, and Eaton(R) Fuller(R)
transmissions.
    The acquisition is the latest in a series of strategic moves by Dana in
the last year that has included the purchase of Clark-Hurth Components and the
Sealed Power Division of SPX Corporation.  Additionally, Dana has entered into
various joint ventures, including a 75-percent share of Wix-Filtron, a Polish
manufacturer of filtration products.
    Dana also has made nine divestitures in the last year, including the sale
of its vehicular clutch business to Eaton in July.  During the last year, Dana
also has sold its U.S. heavy-truck structural components operation; European
warehouse distribution facilities in France, the Netherlands, Portugal, and
the United Kingdom; transmission business; leaf spring manufacturing assets;
flat rubber products business; brake hose business; and its 49-percent
interest in Korea Spicer.
    Dana Corporation is a global leader in the engineering, manufacture, and
distribution of products and systems for the automotive, heavy truck, off-
highway, engine, and industrial markets.  It also operates a leasing services
business, Dana Credit Corporation.  The company reported sales of $7.7 billion
in 1996.  Founded in 1904 and based in Toledo, Ohio, Dana operates facilities
in 30 countries and employs more than 50,000 people.  The Internet address for
Dana's home page is http://www.dana.com.

SOURCE  Dana Corporation