Dana Corporation Announces Expiration of Supply Agreements with Mack Trucks, Inc.

    TOLEDO, Ohio, June 12 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) announced today that it has been informed by Mack Trucks, Inc., a
part of the Volvo Group, that the truckmaker does not plan to extend its
current agreements for supply of chassis assemblies and groomed axles for
Mack's on-highway and vocational trucks.  The current chassis assembly
agreement with Dana expires at the end of 2003, and the axle agreements expire
in May 2004.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    "We are disappointed by this change of direction by Mack," said Nick Cole,
president of Dana's Heavy Vehicle Technologies and Systems Group.  "For more
than 15 years, Dana has provided the highest caliber of service to Mack -- as
we will continue to do in the future."
    Cole said that Dana generated revenue of approximately $293 million in
2001 from the sale of the chassis assemblies and groomed axles to Mack.
Approximately $120 million of these sales consisted of Dana-manufactured
components, and the balance was purchased parts, assembly, and other related
fees.  He said that Dana continues to secure new business that is expected to
exceed this loss and is aggressively pursuing further opportunities for its
award-winning facilities in Lancaster, Pa., and Lugoff, S.C.
    "Mack Trucks appreciates the products and services that Dana has provided
for more than 15 years.  This is a difficult decision due to tough market
conditions and restructuring needs, and is not a reflection on the people of
Dana, who have delivered quality chassis systems," said Carlos Hungria, Mack's
vice president of purchasing.
    These Dana-Mack contract relationships date back to the mid-1980s, when
Dana began supplying fully assembled chassis to Mack's Macungie, Pa., and
Winnsboro, S.C., plants.  By effectively reducing Mack's supply base from
500 separate component suppliers to just one, Dana was able to reduce the
truckmaker's administrative workload with regard to logistics, purchasing, and
quality control.
    Mack Trucks, Inc., and its parent company, Renault V.I., were acquired by
AB Volvo in December 2000.
    Dana Corporation is one of the world's largest suppliers of components,
modules, and complete systems to global vehicle manufacturers and their
related aftermarkets.  Founded in 1904 and based in Toledo, Ohio, the company
operates some 300 major facilities in 34 countries and employs approximately
70,000 people.  The company reported sales of $10.3 billion in 2001.  Dana's
Internet address is http://www.dana.com .
    Certain statements contained herein (including our estimates, beliefs and
expectations) constitute "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995.  These statements
involve assumptions, uncertainties and risks and our actual results,
performance and achievements may differ materially from those expressed or
implied in these statements.  Among the factors that could affect Dana's
actual results are the timing and success of the Heavy Vehicle Technologies
and Systems Group's new business programs.  Other factors are detailed in our
public filings with the Securities and Exchange Commission.  We do not
undertake to update any forward-looking statements contained herein.

SOURCE Dana Corporation

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

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