Dana Corporation to Acquire Additional Global Axle Operations

    TOLEDO, Ohio, Feb. 15 /PRNewswire/ -- Dana Corporation (NYSE: DCN)
announced today that it has reached a definitive agreement to purchase the
axle manufacturing operations of Invensys plc, a London-based electronics and
engineering company, for $63 million.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    Sales for the operations were approximately $130 million in 1999. The
acquisition includes facilities in Australia and South Africa that employ
approximately 1,400 people.
    "This strategic, bolt-on acquisition will support one of our core products
and help further expand our axle opportunities in passenger car applications,"
said Dana President and CEO Joe Magliochetti.  "This is precisely the type of
strategic acquisition that will enhance shareholder value, and further
demonstrates Dana's commitment to our tactical Five-Point Plan."
    "This acquisition fits very nicely into our global growth strategy --
especially in the Asia-Pacific region," said Dana Chairman Southwood J.
Morcott. "We have been growing our automotive business in the region, and this
will help us strengthen our base and provide opportunities for further
growth."
    Dana announced in December that it has been selected to supply
independent, rear-suspension drive modules for a future Ford vehicle to be
built in Australia. Production is expected to exceed 100,000 units annually.
Dana also supplies General Motors Corporation's subsidiary in Australia,
Holden Ltd., with 200,000 front corner modules and 100,000 rear drive modules
annually for the Holden Commodore.
    "This will really add to the strength of our independent axle offering,"
said Bill Carroll, president of Dana's Automotive Systems Group. "This
business is a natural fit for us, and we are very pleased to be adding some
good process technology, excellent operations, and quality people to our
group."
    The transaction is subject to the approval of appropriate regulatory
agencies.
    This acquisition is consistent with Dana's previously announced Five-Point
Plan, which is a tactical link to the company's overall strategic plan.  The
Five-Point Plan provides elements for continued growth and increased
profitability.
    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.

    Invensys plc is a global electronics and engineering company created by
the merger of BTR plc and Siebe plc. With its head office in London, England,
and more than 100,000 employees, it operates globally through four divisions -
Intelligent Automation, Industrial Drive Systems, Power Systems, and Controls.
    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 84,000 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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