Dana Corporation Board Authorizes Additional Stock Repurchases, Declares Dividend

    Magliochetti Elected to Succeed Morcott as Chairman, Effective April 5

    TOLEDO, Ohio, Feb. 14 /PRNewswire/ -- At its February meeting, the Dana
Corporation (NYSE: DCN) Board of Directors today approved an additional stock
buy-back authorization under which the company may repurchase an additional
$250 million of its common stock in the open market or in privately negotiated
transactions through December 31, 2000.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    Last April the Board had authorized stock repurchases of $350 million
through October 2000, of which $100 million was utilized during 1999. The
balance of this initial authorization is now expected to be completed well in
advance of the expiration date.
    Southwood J. Morcott, Dana's chairman, said, "Given the current under-
valuation of Dana stock, we are fortunate that our balance sheet and strong
cash flow allow us to be in a position where we can step up our repurchase
activities."
    Joe Magliochetti, Dana's president and chief executive officer, said, "Our
strategic divestiture plans are proceeding well. In addition to the
announcement of the sale of Gresen earlier this month, we have also completed
the sale of our Australian Truckline operations, and we anticipate completing
other significant transactions during the first quarter.
    "Proceeds from these divestitures and others that we may consider in the
context of our continual review of operations, coupled with the expected
results of a company-wide initiative to dramatically reduce working capital
this year, enable us to be more aggressive with our buy-back initiatives as we
continue with a prudent capital program and seek potential bolt-on
acquisitions," he said.
    "This drive for improved capital efficiency will be firmly reinforced by
the Board's approval today of a modification to Dana's incentive compensation
plan which will now be based in large part on return on invested capital and
on growth in profit. Statistics have shown that these metrics, which focus on
capital efficiency and earnings growth, closely correlate to shareholder
returns," he added.
    All of these actions are consistent with Dana's previously announced Five-
Point Plan. The plan, which is a tactical link to the company's overall
strategic plan, provides elements for continued growth and increased
profitability.
    The Five-Point 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.

    Magliochetti Elected Chairman, Effective April 5
    The Board also elected Magliochetti chairman of the Board, effective
following Dana's annual meeting April 5.  He will succeed Morcott, who
announced his retirement last October.  Magliochetti currently serves as Dana
president and chief executive officer, positions he will also hold as
chairman.

    Sale of Australian Truckline Parts Centres Business Completed
    Dana also announced today that it has completed the sale of its Australian
Truckline Parts Centres business to International Trucks Australia Pty
Limited, a subsidiary of Italian truck manufacturer Iveco SpA.  The operation
had sales of $34.5 million in 1999 and employs 190 people.

    Dividend Declared
    The Board today also approved a quarterly dividend of 31 cents per share,
payable on March 15 to shareholders of record on March 1. This will be Dana's
249th consecutive dividend -- dating back to 1936 -- without a missed or
reduced payment.
    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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