Dana Corporation Comments on Credit Rating

    TOLEDO, Ohio, Jan. 23 /PRNewswire/ -- In response to a decision by
Standard & Poor's today to adjust the company's corporate credit and senior
unsecured debt ratings and place the company on its CreditWatch list, Dana
Corporation's (NYSE: DCN) Chief Financial Officer Bob Richter commented, "This
decision is not completely surprising given the difficult market conditions we
presently see in the automotive industry. While this action is disappointing,
we continue to retain our investment-grade status.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    "Production volume for both light and heavy vehicles was down
significantly in the fourth quarter, as a number of our customers' plants were
idled.  Production disruptions will likely continue during the first half of
2001 as our customers seek to balance production with demand levels. Since the
beginning of the year, first-quarter production schedules for North America
have reportedly been reduced by 27 percent at Chrysler, 21 percent at General
Motors, and 17 percent at Ford.
    "In response, we continue to reduce our workforce and are taking a number
of other cost-reduction actions.  But the short-term effects of these actions,
coupled with the lower volumes, are significantly impacting our profitability.
    "Nevertheless, we're fortunate to have a seasoned management team which
has been through these market cycles before," he said.  "We are also fortunate
to be financed by a solid group of lenders who have confidence in our ability
to manage through these conditions.  We remain committed to maximizing cash
flow and reducing debt as we go forward."
    Dana Corporation is one of the world's largest suppliers to vehicle
manufacturers and their related aftermarkets.  Founded in 1904 and based in
Toledo, Ohio, the company operates approximately 320 major facilities in 32
countries and employs more than 75,000 people.  The company reported sales of
$13.2 billion in 1999.  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, international economic
conditions, and further delays in consolidation of the company's Engine
Controls warehouse network.  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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