Dana Corporation Receives Court Authorization to Access New Credit Facility

TOLEDO, Ohio, March 3 /PRNewswire-FirstCall/ -- Dana Corporation (NYSE: DCN) today reported that it has received interim Court approval to access a new $1.45 billion debtor-in-possession (DIP) financing facility from Citigroup, Bank of America N.A., and JP Morgan Chase Bank, N.A. The court authorized Dana to utilize up to $800 million of the facility on an interim basis pending a final order approving the full facility. This credit facility will be used for the company's normal working capital requirements, including employee wages, healthcare benefits, supplier payments, and other operating expenses during the reorganization process.

The Company intends to make timely payment for goods received and services provided to it on or after the filing date in the normal course of business and in accordance with terms of existing supplier agreements.

In addition, Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York today also granted approval for a number of other "First-Day Motions" that Dana made as part of its filings for reorganization under Chapter 11 of the U.S. Bankruptcy Code to support its employees and suppliers, together with its customers and other stakeholders. The orders granted by the Court will ensure that the company's business continues to function without disruption. Dana has received authorization to, among other things:

   * Continue to provide its employee wages, healthcare coverage and similar
     benefits for its employees uninterrupted;

   * Pay suppliers for goods and services provided; and

   * Maintain uninterrupted delivery of products and services to its
     customers.

Dana Chairman and Chief Executive Officer Michael Burns said, "We made good progress on our first day in Court and are pleased to have received the approvals needed to maintain normal operations throughout our organization. As we transition into our Chapter 11 reorganization, we will do so smoothly and with continued focus on meeting the needs of our customers by providing them with the quality products they have come to expect from us, delivered on time and to best-in-class specification."

Dana filed to reorganize under Chapter 11 earlier today in the U.S. Bankruptcy Court for the Southern District of New York. The case number is 06-10354. More information about Dana's Chapter 11 filing, including Interim Orders and other First-Day Motions, is available online at http://www.dana.com/reorganization.

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 annually. A leading supplier of drivetrain, chassis, structural, and engine technologies, Dana employs 46,000 people in 28 countries. Based in Toledo, Ohio, the company reported sales of $9 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. Dana's actual results could differ materially from those expressed or implied in such statements due to a number of factors. These factors include Dana's ability to continue as a going concern, operate pursuant to the terms of the debtor- in-possession (DIP) facility, obtain court approval with respect to motions in the Chapter 11 proceeding from time to time, and develop and implement a plan of reorganization under Chapter 11; Dana's ability to obtain and maintain normal terms with vendors and service providers and maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 cases on Dana's liquidity or results of operations; Dana's ability to fund and execute its business plan and its ability to attract, motivate and/or retain key employees; Dana's ability to attract and retain customers; and other risk factors set out in our public filings with the Securities and Exchange Commission. Dana does not undertake to update any forward-looking statements in this release.

  Contact:

  Chuck Hartlage
  (419) 535-5401

SOURCE: Dana Corporation

CONTACT: Chuck Hartlage of Dana Corporation, +1-419-535-5401

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