S&P Reaffirms Credit and Debt Ratings for Dana Corporation and Dana Credit Corporation

    TOLEDO, Ohio, June 17 /PRNewswire/ -- Standard & Poor's Corporation has
affirmed its "A-" corporate credit rating and its "A-" senior unsecured debt
rating on Dana Corporation (NYSE: DCN), and removed the ratings from its
CreditWatch. The ratings of Dana's leasing subsidiary, Dana Credit
Corporation, were also reaffirmed "A-" and removed from CreditWatch.
    In making the announcement, Standard & Poor's said, "The ratings reflect
Standard & Poor's expectation that management will remain committed to debt
reduction and succeed in restoring debt to capital to about 40 percent in the
next 12 to 18 months. Dana Corporation has been restructuring and realigning
its operations in the past three years to enhance its business profile. As
part of this process, the company has bought and sold a number of operations.
As a result, Dana Corporation's adjusted debt leverage was about 50 percent at
year-end 1998.
    "Earlier this year, Dana announced that its Board had authorized a
$350 million stock repurchase program. The ratings affirmations assume that
Dana will offset the impact of any share repurchase under this program with
proceeds from asset sales and that it will use free cash flow to repay debt."
    In April, Dana unveiled its Five-Point Plan, a tactical link to the
company's overall strategic plan that includes the repurchase of stock as the
company generates cash.
    Jack Simpson, Dana chief financial officer said, "The Five-Point Plan is
key to enhancing shareholder value. We are extremely pleased that Standard &
Poor's has confidence in our ability to manage this multi-faceted program
within the context of our financial targets and debt-rating objectives.
    "The Five-Point Plan is a disciplined, comprehensive approach that will
improve our operating performance and strengthen our balance sheet," Simpson
said.
    The Five-Point Plan provides elements for continued growth and
profitability over the next 12 to 18 months.
    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.

    Consistent with this Plan, Dana last week announced its intention to sell
the first two of a series of businesses identified for disposition. The
businesses identified have total annual sales of approximately $850 million.
    In the largest divestiture in Dana's history, the company announced plans
to sell its Warner Electric Industrial Products Group and part of its Warner
Electric Industrial Motors and Controls Group. The company also announced its
intention to sell its Commercial Vehicle Cab Systems Group.
    The Warner Electric Industrial Products Group manufactures industrial
clutches and brakes, linear actuators, and ball bearing screws for a diverse
range of applications.  The Warner Electric Industrial Motors and Controls
Group produces a wide range of precision electric motors and controls,
electronic adjustable speed drives, power conditioning equipment, and voltage
and lighting controls.
    The Warner operations to be divested had combined sales of approximately
$360 million in 1998, and employ approximately 3,000 people at 18 major
manufacturing and assembly facilities throughout the world.
    The Commercial Vehicle Cab Systems Group is a $91 million manufacturer of
truck mirrors, windshield wiper systems and HVAC 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 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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