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Dana Corporation Intends to Sell Global Hydraulic Operations

28 July 1999

Dana Corporation Intends to Sell Global Hydraulic Operations

    TOLEDO, Ohio, July 28 -- Dana Corporation today
announced its intention to sell its worldwide Gresen hydraulic operations.
    Gresen had sales of approximately $135 million in 1998 and employs nearly
1,000 people at facilities in Greenville, S.C.; Minneapolis; Sarasota, Fla.;
and Cachoeirinha, R.S., Brazil.
    Gresen manufactures a wide range of hydraulic pumps, motors, cylinders,
control valves, filters, and electronic controls for auxiliary equipment for
on- and off-highway vehicles.  It also has significant systems capabilities.
    Nick Cole, president of Dana's Off-Highway Systems Group, said, "This
decision was not easy.  Gresen is a solid performer, but as Dana focuses more
on its core businesses, auxiliary power is becoming less strategic for us.
Gresen has always had excellent products and exceptional people.  This
decision should give them greater potential with a company that considers
these products to be core."
    According to Cole, the proposed sale is consistent with Dana's previously
announced Five-Point Plan for continued growth and increased profitability,
and it comes in response to interest from potential buyers.
    "In the last two months, Dana has announced its intention to sell non-
strategic or under-performing operations with sales totaling some $665
million.  The decisions, while difficult, are part of Dana's Five-Point Plan
for continued growth and increased profitability," said Joe Magliochetti, Dana
president and CEO.
    Dana unveiled its Five-Point Plan in April.  The plan, a tactical link to
the company's overall strategic plan, includes the following five elements:

    * Grow while focusing on returns and maintaining financial discipline;
    * Seek strategic, bolt-on acquisitions at reasonable valuations;
    * Divest non-strategic and non-performing operations;
    * Repurchase stock as the company generates cash; and
    * Complete integration efforts and realize synergy savings.

    Dana has retained the investment-banking firm of Morgan Stanley Dean
Witter to assist in the transaction.
    Dana Corporation is one of the world's largest independent suppliers to
vehicle manufacturers and their related aftermarkets.  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 .