Dana Corporation Comments On Credit Ratings

    TOLEDO, Ohio, May 30 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today
commented on recent ratings actions. On May 10, Standard & Poor's affirmed
Dana's corporate credit and senior debt ratings at BBB, while today Moody's
Investors Service lowered Dana's senior debt ratings to Ba1.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    "We believe that the disparity in the opinions of the two agencies
reflects their differing views regarding the impact of recent market declines
on Dana," said Dana's Chief Financial Officer Bob Richter. "In response to
sharp declines in light- and heavy-truck production, we have made significant
reductions in our workforce and will continue with cost-reduction measures to
improve operating performance.
    "During the first quarter, we also took a number of decisive actions to
strengthen our liquidity and enhance our financial flexibility.  We expanded
our revolving credit facility by $250 million to a total of $1.25 billion and
reduced our borrowings under that facility by $400 million through the
creation of an accounts receivable securitization program.  In addition, we
reduced inventory by more than $100 million," Mr. Richter continued.
    In May, Dana announced agreements for the sale of its Chelsea Power Take-
off and Glacier Industrial Bearings businesses. "We now anticipate that
proceeds from divestitures will exceed $225 million for the year, surpassing
earlier estimates," Mr. Richter said. "Going forward, we remain committed to
maximizing cash flow and reducing debt."
    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 more than 75,000 people.
The company reported sales of $12.3 billion in 2000.  Dana's Internet address
is http://www.dana.com .
    Certain statements contained herein constitute "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.  Among the
factors that could affect Dana's actual results are the ability of various
vehicular customers and suppliers to achieve projected sales and production
levels, the cyclical nature of the vehicular industry, and international
economic conditions, and the closing of planned divestitures as contemplated.
Additional factors 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.

SOURCE Dana Corporation

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

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