Dana Synergy Plan Identifies Increased Savings; Board Declares Dividend

Oct 20, 1998

    TOLEDO, Ohio, Oct. 20 /PRNewswire/ -- Dana Corporation (NYSE: DCN)
announced today that its synergies plan for integrating the operations of the
former Echlin Inc. into Dana's business should result in greater operational
savings than previously estimated.
    Southwood J. Morcott, chairman and chief executive officer, said that
Dana's original goal of $170 million in pre-tax synergies in 1999 has been
revised upward to $200 million, and its projection of $340 million in 2000 has
been increased to $375 million.
    The $375 million in savings is expected to come from the following areas:
    -- $140 million from previously announced Phase I and II Echlin
restructuring activities;
    -- $115 million from additional plant closures and consolidation, as well
as synergies in manufacturing operations;
    -- $90 million from consolidation of aftermarket sales, marketing, and
distribution functions;
    -- $10 million from consolidation of original equipment sales, marketing,
and engineering functions;
    -- $20 million from the elimination of duplicate corporate expenses.
    Morcott said that Dana's current plans call for the reduction of more than
3,500 people from the company's global workforce, up from the previously
announced number of 3,400. The company also plans to close 15 manufacturing
facilities and eliminate 30 distribution points.  These closings are in
addition to the rationalization plans previously announced by Echlin and the
phase out of the former Echlin corporate headquarters in Branford, Conn.
    Morcott added, "This is a difficult decision for us.  All of the
facilities and the people involved have been notified.  We will do all we can
to help the people that are affected."
    Dana also announced today that nonrecurring charges relating to the
synergies plan will approximate $170 million pre-tax.  In accordance with
existing accounting requirements, $130 million will be recorded in the fourth
quarter of 1998 and the balance of $40 million in 1999.
    Fourth quarter 1998 charges will include $65 million for people costs;
$50 million to eliminate excess assets, and $15 million for other exit costs.
The estimated 1999 expense includes $40 million in cash integration costs.
    "More than 125 cross-functional synergy teams have been evaluating areas
of possible cost savings and sales synergies.  Their recommendations greatly
exceeded our expectations and underscore what a valuable, strategic
acquisition this is for our company and how well the Echlin lineup fits within
Dana," Morcott said.

    Dana's Board of Directors today approved a quarterly dividend of $0.29 per
share payable Dec. 15, 1998, to shareholders of record as of Dec. 1, 1998.
This will mark Dana's 244th consecutive dividend (dating back to 1936) without
a missed or reduced payment.
    One of the world's largest independent suppliers to vehicular, off-
highway, and industrial manufacturers and their related aftermarkets, Dana
Corporation produces components and systems for use on more than 95 percent of
the world's 650 million motor vehicles.  Founded in 1904 and based in Toledo,
Ohio, the company employs 79,000 people at 293 manufacturing and
97 distribution facilities in 33 countries.  The company had pro forma sales
of $11.9 billion in 1997.  Dana's Internet address is http://www.dana.com.
    Certain statements contained herein constitute "forward-looking"
statements within the meaning of the Private Securities Litigation Reform Act
of 1995.  Such forward-looking statements involve assumptions, known and
unknown risks, uncertainties, and other factors, which may cause Dana's actual
future results, performance, or achievements to differ materially from the
results, performance, or achievements expressed or implied by such forward-
looking statements.  Such factors include, among other things, the following:
achieving sales levels to fulfill revenue expectations; the absence of
presently unexpected costs or charges, certain of which may be outside the
control of Dana; the cyclical nature of the automotive industry; achievement
of the anticipated synergies or savings; general economic and business
conditions, including international economic circumstances; and competition.
Additional factors are detailed in Dana's public filings with the Securities
and Exchange Commission.  Dana disclaims any responsibility to update any
forward-looking statement provided in this press release.

SOURCE Dana Corporation

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

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