Dana Corporation Receives Final Approval for $1.45 Billion Debtor-in- Possession Credit Facility

TOLEDO, Ohio, March 29, 2006 /PRNewswire-FirstCall/ -- Dana Corporation (OTC: DCNAQ) (BULLETIN BOARD: DCNAQ) today announced that it has received final court approval for the full amount of its $1.45 billion debtor-in-possession (DIP) financing to help support its ongoing operations. The DIP credit facility is being provided by a group of banks led by CitiCorp North America, Inc., Bank of America, N.A., and JPMorgan Chase Bank, N.A.

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The full facility consists of a $750 million revolving credit facility and a $700 million term loan. The term of the DIP facility was extended to 24 months from the date of its bankruptcy court filing, providing the company with additional flexibility.

Dana Chairman and Chief Executive Officer Mike Burns said, "We are pleased to have the full financing facility available as we proceed with the company's reorganization. This financing, combined with existing cash flow from operations, provides added assurance to our suppliers, employees, and customers that we will continue to meet our post-filing obligations to them. With a stable financial footing, we can focus our energies on executing our plans to improve operations, strengthen performance, and achieve a sustained turnaround at Dana."

Dana also received court approval for a number of other motions that will help advance the company's reorganization. The relief Dana sought was uniformly granted and included:

   - Rejecting certain leases at unused properties;
   - Retaining various professionals and continuing the company's cash
     management system;
   - Establishing procedures for small asset sales;
   - Requiring a repudiating supplier to return payments improperly obtained
     from Dana; and
   - Ensuring uninterrupted utility service.

More information about Dana's reorganization case is available at http://www.dana.com/reorganization. The case has been assigned to the Honorable Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York. The case number is 06-10354.

About Dana Corporation

Based in Toledo, Ohio, Dana Corporation is a leading supplier of axle, driveshaft, engine, frame, chassis, and transmission technologies. Dana people design and manufacture products for every major vehicle producer in the world -- in the automotive, commercial vehicle, and off-highway markets. The company and certain of its U.S. subsidiaries are operating under Chapter 11 of the U.S. Bankruptcy Code as debtors-in-possession. More information about Dana can be found on the Internet at http://www.dana.com/.

Forward-Looking Statements

Statements in this release that 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, including our 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 further motions in the Chapter 11 proceeding from time to time, and develop and implement a plan of reorganization under Chapter 11, and other risk factors set out in our public filings with the Securities and Exchange Commission. Forward-looking statements in this release speak only as of the date of the release. Dana does not undertake to update such forward-looking statements.

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SOURCE: Dana Corporation

CONTACT: Chuck Hartlage of Dana Corporation, +1-419-535-4728, or
chuck.hartlage@dana.com

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

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