Dana Completes Sale of Clutch Business to Eaton

Sep 2, 1997


    TOLEDO, Ohio, Sept. 2 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today
announced the closing of the sale of its vehicular clutch business to Eaton
Corporation (NYSE: ETN).  The transaction, first announced July 9, is another
in a series of strategic moves that Dana has taken to focus on its core
businesses.
    The sale of Dana's Spicer Clutch business, a manufacturer of new and
rebuilt clutches for original equipment manufacturers and distribution
markets, resulted in an after-tax gain to Dana of approximately $70 million
(67 cents per share), to be recognized in the third quarter.
    The operations sold are located in the United States, Australia, Brazil,
Holland, and England.
    Under an agreement with Eaton, Dana will continue to market and supply
independent distribution customers with new and remanufactured clutches.
    Another pending transaction with Eaton -- Dana's purchase of Eaton's
global axle and brake business -- is undergoing due diligence and customary
regulatory review.
    Headquartered in Cleveland, Eaton Corporation is a manufacturer of
products for the industrial, vehicular, construction, commercial, and
aerospace markets.
    Dana Corporation is a global leader in the engineering, manufacture, and
distribution of products and systems for the vehicular, industrial, and off-
highway markets.  Its core businesses are axles, driveshafts, structural
components (frames), sealing products, filtration products, engine products,
industrial products, and leasing services.  Dana's leasing operation was a
recipient of the 1996 Malcolm Baldrige National Quality Award.   Founded in
1904 and based in Toledo, Ohio, Dana operates facilities in 30 countries and
employs more than 48,000 people.  Its 1996 sales were $7.7 billion.  The
Internet address for Dana's home page is www.dana.com.

SOURCE  Dana Corporation

CONTACT: Gary Corrigan of Dana Corporation, 419-535-4813

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