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Dana Corporation and GKN Plc Announce Strategic Alliance

29 March 1999

Dana Corporation and GKN Plc Announce Strategic Alliance to Develop Advanced Driveline Systems and Modular Assemblies

               Companies Accelerate Technological Developments
                     and Improve Customer Speed to Market

    TOLEDO, Ohio, March 29 -- Dana Corporation and
GKN plc today announced agreements to form a strategic alliance to design
advanced driveline systems for all-wheel and four-wheel drive passenger cars,
light trucks, and sport utility vehicles, and to jointly develop modular
assemblies for passenger car and light-vehicle applications worldwide.
    "This is a smart alliance of two global leaders in the auto industry that
will bring unprecedented benefits to our customers.  These agreements mean GKN
and Dana will pool resources, skills, and technology," said Joe Magliochetti,
chief executive officer of Dana Corporation.  "The dynamics of this alliance,"
said CK Chow, chief executive of GKN plc, "will strengthen the innovative
product offering of both companies."
    Bill Carroll, president of Dana's Automotive Systems Group, said, "This
relationship will allow Dana's customers to benefit from the development of
next-generation axle and systems technology."  Dana and GKN will establish an
office in Auburn Hills, Mich., to provide an integrated work environment for
engineers from both companies, he said.
    Sarkis Kalyandjian, executive director and chief executive of the
automotive driveline division for GKN, said, "GKN and Dana have worked in
partnership for years in successful automotive driveline joint ventures in
Mexico and South America.  These agreements strengthen an already rock-solid
relationship."
    In addition, Dana and GKN announced an agreement to exchange certain
assets that allow each company to focus more strongly on its core
competencies.  GKN is a global leader in CV joint driveshaft technology, and
Dana is an established global leader in the development of cardan-jointed
vehicle propeller shafts and axle technology.
    Under the agreements, Dana will exchange its constant velocity joint
business for GKN's global cardan-jointed propeller shaft business.  This
includes Dana's Columbia, S.C., manufacturing operation; Dana's constant
velocity joint venture interests in Argentina and Colombia; and a majority
interest in the companies' Brazilian joint venture.  GKN will have the option
of purchasing Dana's remaining interest in the Brazilian operation as of
January 1, 2001.
    In the exchange, Dana will acquire all of GKN's medium and heavy-duty
cardan propeller shaft operations in France, Germany, Italy, and Sweden; as
well as a minority interest in GKN's European light-duty cardan-jointed
propeller shaft operations, which includes facilities in the United Kingdom
and Spain.  Dana will have the option to obtain a controlling interest in
these operations at a later time.
    These transactions are subject to the completion of due diligence,
negotiation of a definitive agreement, approval of the companies' respective
boards, and approval of appropriate regulatory agencies.
    Dana Corporation is one of the world's largest independent suppliers to
vehicle manufacturers and the aftermarket.  Founded in 1904 and based in
Toledo, Ohio, the company operates some 330 major facilities in 32 countries
and employs more than 86,000 people.  The company reported sales of
$12.5 billion in 1998.  Dana's Internet address is http://www.dana.com.
    GKN is a global industrial company with sales exceeding 3.7 billion
pounds.  It designs, develops, and manufactures automotive and agritechnical
components, as well as aerospace and defense products and provides a range of
industrial services.  GKN's operations are located in more than 40 countries
around the world, employing some 35,000 people in its subsidiaries, and a
further 12,300 in joint ventures.  GKN's Internet address is http://www.gknplc.com.