Dana Corporation Receives Waiver Extensions Under Credit Facilities

PRNewswire-FirstCall
TOLEDO, Ohio
(NYSE:DCN)
Nov 21, 2005

TOLEDO, Ohio, Nov. 21 /PRNewswire-FirstCall/ -- Dana Corporation (NYSE: DCN) announced today that it has received a continuation and extension of waivers related to its five-year bank facility and accounts receivable securitization program and has amended the agreements related to both facilities.

(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA)

The new waivers extend the existing waivers under these agreements from Nov. 30, 2005, to May 31, 2006, including waivers of the principal financial covenants in the five-year bank facility. In addition, they waive non- compliance with other covenants related to the delayed filing or delivery of Dana's financial statements for the third quarter of 2005, as well as for the earlier periods that the company previously announced it will restate.

"We appreciate the support of our bank group. These waivers provide us the flexibility and time to complete the restatements in an orderly fashion," said Dana Chief Financial Officer Bob Richter. "We look forward to working with our bank group on additional modifications to the existing facilities or the creation of successor facilities to address Dana's needs beyond the expiration of the waivers."

As part of the amendment of the five-year bank facility, Dana and its wholly-owned domestic subsidiaries are granting security interests in certain domestic current assets and machinery and equipment. As part of the amendment to the accounts receivable securitization program, Dana's minimum corporate credit rating required under the agreement has been reduced.

The new waivers under both agreements provide for early termination in the event Dana is not able to deliver its restated financial statements by Dec. 30, 2005. Dana expects to file its restated financial statements with the Securities and Exchange Commission prior to this date.

About Dana Corporation

Dana people design and manufacture products for every major vehicle producer in the world. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles every year. A leading supplier of axle, driveshaft, engine, frame, chassis, and transmission technologies, Dana employs 46,000 people in 28 countries. The company is based in Toledo, Ohio, and reported sales of $9.1 billion in 2004. Dana's Internet address is: http://www.dana.com/.

Forward-Looking Statements

Statements in this release which are not entirely historical constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent Dana's expectations based on our current information and assumptions. However, forward-looking statements are inherently subject to risks and uncertainties. The timing of Dana's filing of the restated financial statements may differ from what is currently expected. In addition, there can be no assurances regarding the outcome of Dana's discussions with its bank groups regarding future financing arrangements. Dana does not undertake to update any forward-looking statements in this release.

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SOURCE: Dana Corporation

CONTACT: Michelle Hards of Dana Corporation, +1-419-535-4636, or
michelle.hards@dana.com

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

Company News On-Call: http://www.prnewswire.com/comp/226839.html


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