Dana Corporation Intends To Sell English Forging Facility

Nov 8, 1999

    TOLEDO, Ohio, Nov. 8 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today
announced that it intends to sell its Kirkstall, Leeds, England, forging
operations.
    The 660,000-square-feet facility produces forgings for axle components and
the oil and petro-chemical industries.  It also manufactures axles for on- and
off-highway applications.  The facility employs approximately 450 people.
    Dana plans to retain the engineering and sales responsibilities for
finished drive and front-steer axles manufactured at the facility.
    Nick Cole, president of Dana's Off-Highway Systems Group, said, "This
decision was not easy and does not reflect on the people at Kirkstall or on
the future business opportunities for that operation.  Forging is simply not a
core Dana technology.  We believe this operation will be more competitive as
part of a company that considers forging central to its business."
    Cole said the proposed sale is consistent with Dana's previously announced
Five-Point Plan for continued growth and increased profitability, and it comes
in response to expressions of interest from potential buyers.
    "This is another clear example of Dana's strategy to divest operations
that are either non-strategic or under-performing -- which is one of the
tactics of our Five-Point Plan," said Joe Magliochetti, Dana president and
CEO.
    Southwood J. Morcott, Dana chairman, said, "This year, we have said we
plan to sell operations with annual sales of about $850 million.  As these
divestitures conclude, they will provide additional cash flow to further
implement our Five-Point Plan."
    Dana unveiled its Five-Point Plan in April.  A tactical link to the
company's overall strategic plan, the 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 has retained the investment-banking firm of CIBC World Markets to
assist in the transaction.
    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

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