Dana to Grow Global Axle & Transaxle Technology

             Company to Acquire Interest in European Manufacturer

    TOLEDO, Ohio, June 29 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today
announced that it has signed a definitive agreement to purchase an interest in
GETRAG Getriebe- und Zahnradfabrik Hermann Hagenmeyer GmbH & Cie, a
manufacturer of transmissions, transaxles, axles, and other automotive
components.  Headquartered in Ludwigsburg, Germany, the company had sales of
$750 million in 1999. Financial terms of the agreement were not disclosed.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    "This relationship will support our global growth strategy for the
passenger car market, and enhance our focus on advanced automotive
technologies," said Dana Chairman and CEO Joe Magliochetti.  "GETRAG has a
highly skilled workforce and a solid reputation for precision engineering,
quality, and innovation. We have great respect for this fine organization and
we are excited about expanding Dana's relationship with GETRAG."
    Under the terms of the agreement, Dana will acquire a 30-percent stake in
GETRAG Cie, the parent company of the GETRAG group of companies, and a 49-
percent stake in GETRAG's North American operations. Bill Carroll, president
of Dana's Automotive Systems Group, will be named to the Advisory Board of
GETRAG GmbH & Cie.
    "This strategic partnership will strengthen Dana's automotive offerings
globally, and particularly enhance our opportunities in the European passenger
car market," Mr. Carroll said.
    "Strategically, this transaction is very similar to our recent
collaboration with GKN to produce advanced driveline technologies. GETRAG's
transaxle and gear manufacturing technologies are highly complementary to our
expertise and will enable us to further develop our under-the-vehicle
technology, products, and systems," he added.
    Tobias Hagenmeyer, GETRAG's chairman and CEO, said, "This agreement with
Dana fits our strategy of continued growth and complements in a great way our
recently announced joint venture with Ford. In both cases, GETRAG will benefit
strategically by further developing ideas and innovations to better serve our
customers on a global basis. We are very pleased to advance our relationship
with another global leader in advanced automotive technology for the benefit
of both companies."
    GETRAG is a major supplier to the European automotive industry and has an
excellent reputation for the quality of its products and technologies. The
company employs some 5,000 people in 11 manufacturing facilities worldwide.
Its major customers include Audi, BMW, DaimlerChrysler, Ford, GM/Opel, Jaguar,
Porsche, and Volkswagen.
    GETRAG and Ford-Werke AG recently signed a joint-venture agreement to
develop and produce innovative manual transmissions in Europe.  Under terms of
the agreement, Getrag will purchase a 50-percent interest in the joint venture
encompassing Ford's manual transmission manufacturing plants in Bordeaux,
France; Cologne, Germany; and Halewood, U.K.; as well as its technical center
in Merkenich, Germany.  The agreement also includes a 10-year gearbox sourcing
commitment from Ford.
    Dana and GETRAG will establish a joint technology council to explore ways
to further advance automotive applications for design and technology. The two
companies will also create a joint marketing council to bring the resulting
new products and innovations to market rapidly.
    The transaction is subject to the approval of appropriate regulatory
agencies.
    This move is consistent with Dana's previously announced Five-Point Plan
for continued growth and improved profitability, which is a tactical link to
the company's overall strategic plan.
    The plan includes the following five tactics:

    * Grow while focusing on returns and maintaining financial discipline;
    * Seek strategic, bolt-on acquisitions at reasonable valuations;
    * Divest non-strategic and non-performing operations;
    * Repurchase stock as the company generates cash; and
    * Complete integration efforts and realize synergy savings.

    Dana Corporation is one of the world's largest independent suppliers to
vehicle manufacturers and their related aftermarkets. Founded in 1904 and
based in Toledo, Ohio, the company operates some 320 major facilities in 32
countries and employs more than 82,000 people. The company reported sales of
$13.2 billion in 1999. Dana's Internet address is http://www.dana.com .

SOURCE Dana Corporation

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

Photo Notes: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
Company News On Call: Company News On-Call:
http://www.prnewswire.com/comp/226839.html or fax, 800-758-5804,
ext. 226839