Dana Corporation Completes Largest Divestiture In History With Sale of Warner Electric Operations

    TOLEDO, Ohio, March 1 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today
announced that it has completed the largest divestiture in its history -- the
sale of most of its global Warner Electric businesses to Colfax Corporation.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    Dana said it will record a one-time gain of approximately $70 million
before tax in the first quarter of 2000 as a result of the sale.
    As part of its strategy to focus more on the worldwide vehicular market,
Dana sold all of its Warner Electric Industrial Products business and part of
its Warner Electric Motors and Controls business.  The divested businesses had
sales of approximately $350 million in 1999 and employ some 3,000 people at
22 facilities throughout the world.
    Dana retained a number of facilities that will help to strengthen its new
Motor and Electronic Systems division.  These include automotive motion
control operations; its American Electronic Components, Inc., facilities
serving automotive customers; and certain automotive engineering and test
facilities.
    The Motor and Electronic Systems division was established to transform
existing Dana products from "mechanical" to "intelligent" systems and to
achieve greater electronic design and production effectiveness.
    "This divestiture enables us to more effectively focus on our core
businesses and our new vehicular electronic capability.  It is another example
of Dana's resolve to divest non-strategic assets -- one of the elements of our
Five-Point Plan.  And in doing so, it helps us to accomplish other elements of
the plan," said Joe Magliochetti, Dana president and CEO.
    "In anticipation of the receipt of the proceeds from this and other recent
divestitures, we have accelerated the repurchase of our shares and now expect
to complete our original $350 million buy-back authorization by the end of the
first quarter," he said.  "In addition, we still have the authority to
repurchase another $250 million of stock, which the board approved at its
meeting earlier this month."
    Dana unveiled its Five-Point Plan last April.  A tactical link to the
company's overall strategic plan, the plan provides five elements for
continued growth and increased profitability:

    * 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.

    Southwood J. Morcott, Dana chairman, said, "Warner Electric has been an
important contributor to Dana, and we owe a debt of gratitude to our people
from those divisions.  I am confident Warner will grow further with Colfax,
which is very focused on industrial products."
    Colfax is a privately held company based in Richmond, Virginia.  It is a
leading manufacturer of fluid handling and industrial positioning products
through its Imo Pump, Allweiler, Boston Gear, Ameridrives, Morse Controls, and
Sierra International operating companies.
    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 330 major facilities in 32
countries and employs more than 81,000 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

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