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Dana Corporation to Acquire Innovative Manufacturing, Inc.

16 August 1999

Dana Corporation to Acquire Innovative Manufacturing, Inc., as Part of Plan to Expand Operations at Ohio Plant

    TOLEDO, Ohio, Aug. 13 -- Dana Corporation today
announced that it has acquired Innovative Manufacturing, Inc., a manufacturing
operation located in the Columbus, Ohio, area, as part of the company's plan
to strengthen operations at its Fredericktown, Ohio, Spicer Outdoor Power
Equipment Components Division facility.
    The joining of Innovative Manufacturing's 30,000-square foot facility with
this division of Dana's Off-Highway Systems Group provides for increased value
added from this bolt-on acquisition.
    A groundbreaking ceremony was held on Wednesday, Aug. 11, for the
construction of Dana's new 100,000-square-foot Spicer Outdoor Power Equipment
Components facility, which will be located on a 20-acre site in Fredericktown,
and is scheduled to be fully operational by March, 2000.  The original plant
was destroyed by fire in October, 1998.  The plant is currently operating from
a temporary location in Mount Vernon, Ohio.
    "Innovative Manufacturing has been a key supplier to our Fredericktown
facility," said Mike Bowersock, vice president and general manager of Dana's
Spicer Outdoor Power Equipment Components Division.  "By bringing this company
into the Dana family, we will be able to expand our operations by integrating
various operations."  Dana also had previously announced that it will move its
mechanical and hydraulic brake components operation from McHenry, Ill., to
Fredericktown, bringing with it 35 additional jobs.  Major customers of the
Spicer Outdoor Power Equipment Components Division include Yamaha, John Deere,
and E-Z-Go.
    This acquisition is consistent with Dana's Five-Point Plan for the
continued growth and increased profitability of the company.  Dana's Five-
Point Plan, which was announced in April, is a tactical link to the company's
overall strategic plan and includes the following five tactics:

    * 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 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.  Dana reported sales of
$12.5 billion in 1998.  Dana's Internet address is http://www.dana.com .