Dana Corporation Revises 2004 Earnings Outlook

    TOLEDO, Ohio, Oct. 12 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) today revised its 2004 earnings expectations from $1.90 per share
to a range of $1.60 to $1.65 per share, excluding non-recurring items.
    (Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    Dana Chairman and CEO Michael J. Burns said, "Like most in our industry,
we are being impacted by the rising cost of steel and other raw materials, as
well as reduced North American light-vehicle production volumes.  Both factors
are contributing to lower-than-expected operating results, not only in our
original equipment business, but also in the automotive aftermarket business.
    "We had expected that the bottom-line impact of these factors could be
offset by the stronger performance in our heavy vehicle business and
continuing cost-reduction efforts.  But, given more recent trends in commodity
prices and light-vehicle production volumes, it's now clear that we will see a
negative effect on our 2004 earnings," Mr. Burns said.  "It's also clear that
this effect will be more pronounced in the fourth quarter, since our third-
quarter results will reflect a benefit from favorable tax developments."
    As previously announced, Dana will discuss its third-quarter results in a
conference call at 10 a.m. (EDT) on Oct. 20.  The call may be accessed via
Dana's web site ( http://www.dana.com ), where it will be accompanied by a brief
slide presentation, or by dialing (800) 275-3210.
    Dana Corporation is a global leader in the design, engineering, and
manufacture of value-added products and systems for automotive, commercial,
and off-highway vehicles. Delivering on a century of innovation, the company's
continuing operations employ approximately 45,000 people worldwide dedicated
to advancing the science of mobility. Founded in 1904 and based in Toledo,
Ohio, Dana operates technology, manufacturing, and customer-service facilities
in 30 countries. Sales from continuing operations totaled $7.9 billion in
2003.  Dana's Internet address is: http://www.dana.com .

    Forward-Looking Statements
    Certain statements contained in this release constitute "forward-looking"
statements within the meaning of the Private Securities Litigation Reform Act
of 1995.  These statements represent Dana's expectations based on our current
information and assumptions.  Forward-looking statements are inherently
subject to risks and uncertainties.  Dana's actual results could differ
materially from those that are anticipated or projected due to a number of
factors.  These factors include national and international economic
conditions; adverse effects from terrorism or hostilities; the strength of
other currencies relative to the U.S. dollar; increases in commodity costs,
including steel, that cannot be recouped in product pricing; the ability of
our customers and suppliers to achieve their projected sales and production
levels; competitive pressures on our sales and pricing; the continued success
of our cost reduction and cash management programs and of our long-term
transformation strategy for the company; the success and timing of the
divestiture of the automotive aftermarket business; and other factors set out
in our public filings with the Securities and Exchange Commission.  Dana does
not undertake to update any forward-looking statements in this release.

SOURCE Dana Corporation

Web Site: http://www.dana.com

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