Dana Corporation Announces Intent to Outsource Production of Axle Components to Sypris Solutions, Inc.

    TOLEDO, Ohio, Sept. 4 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) announced today that it has signed a letter of understanding to
sell certain production assets of Dana's Heavy Vehicle Technologies and
Systems Group to Sypris Solutions, Inc. (Nasdaq: SYPR) and to enter into a
long-term supply agreement with Sypris for the related axle components.
    The proposed asset sale includes Dana's manufacturing facility in
Morganton, N.C., and production assets from facilities in Toluca, Mexico;
Glasgow, Ky.; and Humboldt, Tenn.  Approximately 600 employees in Morganton
and Toluca would be transferred to Sypris as part of the transaction.
    The transaction is subject to the execution of definitive agreements,
approval by Dana's board of directors, applicable regulatory approvals, and
other customary closing conditions.
    Nick Cole, president of Dana's Heavy Vehicle Technologies and Systems
Group, said, "Divesting these non-core heavy vehicle assets is consistent with
Dana's long-term strategy of focusing on core products and processes.
Outsourcing these non-core commodities will help reduce our fixed investment
without compromising customer service, key products, or top-line growth
potential."
    Norm Boisvert, vice president, Commercial Vehicle Systems, said, "The
people at Morganton and Tolcua have been important contributors to Dana's
Commercial Vehicle Systems group, and we are confident that they will have a
positive long-term opportunity to grow and prosper with Sypris."
    Dana Corporation is a global leader in the design, engineering, and
manufacture of value-added products and systems for automotive, commercial,
and off-highway vehicle manufacturers, and their related aftermarkets. The
company employs approximately 60,000 people worldwide. Founded in 1904 and
based in Toledo, Ohio, Dana operates hundreds of technology, manufacturing,
and customer service facilities in 30 countries. The company reported 2002
sales of $9.5 billion.
    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 which are anticipated or projected due to a number of
factors.  These factors include Dana's ability to complete the proposed asset
sales and supply agreement with Sypris as contemplated, the ability of Sypris
to perform the supply agreement as contemplated, 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 contained in this release
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 contained in this release.

SOURCE Dana Corporation

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

Company News On Call: Company News On-Call:
http://www.prnewswire.com/comp/226839.html