Dana Announces Agreement To Sell Australian Truckline Parts Centres

Dec 21, 1999

    TOLEDO, Ohio, Dec. 21 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today
announced an agreement to sell its Australian Truckline Parts Centres business
to International Trucks Australia Pty Limited, a subsidiary of Italian truck
manufacturer Iveco SpA, for an undisclosed sum.  Completion of the sale is
expected to occur during the first quarter of 2000.
    With sales of $36 million (AU $55 million) in 1998, Truckline Parts
Centres is Australia's largest independent specialist distributor of heavy-
duty parts.  The business consists of a nationwide company-owned and -operated
network of 24 retail outlets across Australia, as well as 13 driveline repair
and remanufacturing facilities.  The operations employ 190 people.
    "This transaction reinforces Dana's on-going commitment to increase
shareholder value by further focusing our operations through the divestiture
of non-strategic businesses," said Joe Magliochetti, Dana president and CEO.
"This is our fourth divestiture this year, demonstrating Dana's resolve to
implement our Five-Point Plan."
    Rick Clayton, president of Dana's Heavy Truck Group, said, "We are very
pleased with the agreement we have reached.  The sale of this operation fits
our strategic plan and allows us to concentrate on growing our core businesses
in the region."
    Gerry Turek, managing director of Dana Australia, said, "Dana has a long
and valued relationship with Iveco.  I am pleased that our Truckline people
will be with a company where they will have additional opportunities for
growth and success."
    The sale 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.

    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 86,000 people.  The company reported sales of
$12.5 billion in 1998.  Dana's Internet address is http://www.dana.com .

SOURCE Dana Corporation

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

Company News On Call: Company News On-Call:
http://www.prnewswire.com/comp/226839.html or fax, 800-758-5804,
ext. 226839