Dana Corporation Completes Successful Placement of Notes

Aug 9, 2001

    TOLEDO, Ohio, Aug. 9 /PRNewswire/ -- Dana Corporation (NYSE: DCN)
announced today the completion of its private placement of $575 million and
200 million Euros in 10-year, unsecured senior notes.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    The notes bear a coupon of 9 percent.  The dollar-denominated notes were
sold at par, while the Euro notes were priced at 99.186 to yield at 9.125
percent.  The company will use the proceeds from the offering to repay its
outstanding short-term debt.
    Coincident with this transaction, the company entered into interest-rate
swap agreements of like notional amounts, which effectively convert the fixed
rates to floating rates.
    Commenting on the transaction, Dana Chief Financial Officer Bob Richter
said, "We were extremely pleased with the strong reception of the market to
the offering. In combination with the related interest-rate swaps, for a
modest premium over the floating rates we have been paying, the placement
represents a major step toward assuring that we will have sufficient liquidity
to address our future needs.
    "Not only do we now have a better balance of maturities within our debt
portfolio," he added, "we have also mitigated a significant portion of our
balance-sheet exposure to fluctuations in the Euro-dollar exchange rate."
    The securities offered have not been registered under the Securities Act
of 1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
    This release contains "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995.  These statements
involve assumptions, uncertainties, and risks, and Dana's actual future
results, performance, or achievements may differ materially from those
expressed or implied in these statements.  Factors that could affect our
results include a range of economic, financial, and industry factors, many of
which are beyond our control, including the factors which are detailed in
Dana's public filings with the Securities and Exchange Commission.  Dana does
not undertake to update any forward-looking statements contained herein.
    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 35 countries and employs approximately
75,000 people.  The company reported sales of $12.3 billion in 2000.  Dana's
Internet address is http://www.dana.com .

SOURCE Dana Corporation

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

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