Dana to Sell Flat Rubber Products Business as Core Focus Continues

Jul 25, 1997

    TOLEDO, Ohio, July 25 /PRNewswire/ -- In another move designed to further
its focus on core businesses, Dana Corporation (NYSE: DCN) today announced
that it has signed a letter of intent to sell the flat rubber products
business of its Boston Weatherhead Division to Coltec Industries, Inc., of
Charlotte, N.C.
    The transaction is subject to the negotiation and execution of a
definitive agreement and to customary regulatory approval.
    Boston Weatherhead's flat rubber products are manufactured at Paragould,
Ark., and consist of sheet rubber and conveyor belts.  Coltec said it intends
to continue the Paragould operation and offer employment to Dana's
approximately 140 employees there.
    Last year, Paragould's flat rubber products accounted for $35 million of
Dana's $7.7 billion in sales.
    As part of the transaction, Coltec will purchase raw materials for the
Paragould facility from Boston Weatherhead's rubber mixing facility in
Newbern, Tenn.  Coltec will operate the Paragould facility as part of its
Garlock Sealing Technologies division.
    Mike Plumley, Dana group vice president, Industrial Products, said, "This
move will benefit both parties.  Boston flat rubber products definitely
enhance Coltec's Garlock Sealing line.  And, at the same time, the sale allows
Dana to better focus on the products we consider strategic to our future
industrial growth."
    Dana will continue to manufacture the primary products of its Boston
Weatherhead Division, which are rubber hoses and fluid connectors.  The Boston
Weatherhead Division is part of Dana's Industrial Products Group, which also
consists of the Warner Electric Industrial Products Division and the Warner
Electric Motors and Controls Division.
    Industrial products are one of Dana's eight core businesses and accounted
for sales of $730 million in 1996.  Dana's other core businesses are axles,
driveshafts, structural components, sealing products, filtration products,
engine products, and leasing services.
    The action is the latest in a series of strategic moves that Dana has
taken in 1997 to focus on its core businesses.  Among them, Dana has announced
agreements to sell its transmission business, leaf spring manufacturing
assets, global vehicular clutch business, and hydraulic cylinder operations
and has sold its U.S. heavy-truck structural component operation and European
warehouse distribution facilities.
    Dana also has announced its intention to purchase Eaton Corporation's
global axle and brake operations and has purchased Clark-Hurth Components; the
Sealed Power Division of SPX Corporation; Flexon, Inc., a manufacturer of a
full line of fuel filters; Thermoplast+Apparatebau GmbH, an injection molding
company; and Industrias Orlando Stevaux Ltda, a manufacturer of gaskets and
oil seals.
    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 leasing services 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. The Internet address for Dana's home page is: www.dana.com.
    Coltec (NYSE: COT) is a diversified manufacturing company serving
primarily aerospace and general industrial markets.  Its Garlock Sealing
Technologies division is based in Palmyra, N.Y.

SOURCE  Dana Corporation

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