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Dana and GKN Sign Agreements on Strategic Alliance

2 September 1999

Dana and GKN Sign Agreements on Strategic Alliance for Advanced Driveline Systems and Modular Assemblies

             Companies Accelerate Technological Developments and
                       Improve Customer Speed to Market

    TOLEDO, Ohio, Sept. 1 -- Dana Corporation
announces that yesterday it signed definitive agreements with GKN plc
regarding their previously announced strategic alliance.  The agreements allow
Dana and GKN to establish a joint venture to design advanced driveline systems
for all-wheel and four-wheel drive passenger cars, light trucks, and sport
utility vehicles, and to collaborate to jointly develop modular assemblies for
passenger car and light-vehicle applications worldwide.
    Dana and GKN also signed definitive agreements to exchange certain assets
that will allow each company to focus on their respective core automotive
driveline businesses.  GKN is a global leader in constant velocity (CV) joint
driveshaft technology, and Dana is an established global leader in cardan-
jointed vehicle propeller shafts.  Under the agreements, Dana will exchange
its CV joint business for GKN's cardan-jointed propeller shaft business.
    These transactions are subject to the approval of appropriate regulatory
agencies.
    "These agreements are examples of Dana's commitment to focus and
strengthen our core businesses by following our strategic plan," said Bill
Carroll, president of Dana's Automotive Systems Group.  "Our relationship with
GKN will provide an environment for two global leaders in the automotive
industry to share innovative technology, in turn, providing customers with
leading edge, advanced driveline systems and modules."  Carroll added that
Dana and GKN will establish an office in Auburn Hills, Mich., to provide
engineers an integrated work environment.
    The agreements are consistent with Dana's previously announced Five-Point
Plan for the continued growth and increased profitability of the company.
Dana's Five-Point Plan, which is a tactical link to the company's overall
strategic plan, 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.

    GKN is a global industrial company with sales exceeding approximately
$6 billion (3.7 billion pounds).  Its activities are focused on the
automotive, aerospace and industrial services sectors and it has leadership
positions in all of its major products and services.  GKN employs 39,380
people in its subsidiaries and 19,790 in joint ventures and associates.  GKN's
Internet address is http://www.gknplc.com .
    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 .