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Investors Buy $1 Billion of Dana Notes

1 March 1999

Investors Buy $1 Billion of Dana Notes

    TOLEDO, Ohio, March 1 -- Dana Corporation
announced today that it has sold $1 billion of new senior unsecured notes,
consisting of $250 million of 6.25 percent notes due March 1, 2004;
$350 million of 6.50 percent notes due March 1, 2009; and $400 million of
7.00 percent notes due March 1, 2029.
    Initially planned as a $700 million offering, the offering was increased
in response to demand by bond investors.
    The notes are rated "Baa1" by Moody's Investor Services and "A-" by
Standard & Poor's Corporation.
    Proceeds from the issue will be used to refinance Dana's interim financing
arranged for the acquisition of the Glacier Vandervell bearings and AE Clevite
aftermarket engine hard parts businesses and other short-term debt.
    Closing for the transaction is scheduled for March 3, 1999.  Merrill Lynch
& Co. is the lead manager for the underwriting group, which also includes BT
Alex. Brown; Deutsche Bank Securities; Donaldson, Lufkin & Jenrette; First
Chicago Capital Markets, Inc.; J.P. Morgan & Co.; Lehman Brothers; Morgan
Stanley Dean Witter; NationsBanc Montgomery Securities LLC; and Salomon Smith
Barney.
    Dana Corporation is one of the world's largest independent suppliers to
vehicle manufacturers and related aftermarkets.  Founded in 1904 and based in
Toledo, Ohio, it operates 330 major facilities in 32 countries and employs
more than 86,000 people.  Dana had sales of $12.5 billion in 1998.  Dana's
Internet address is http://www.dana.com.