Dana Corporation Seeks Court Approval to Amend DIP Credit Agreement

Toledo, Ohio – January 4, 2007 – Dana Corporation (OTCBB: DCNAQ) announced today that in support of its ongoing reorganization and anticipated emergence from Chapter 11 bankruptcy protection later this year, the company has filed a motion in the U.S. Bankruptcy Court for the Southern District of New York, which has jurisdiction over its Chapter 11 bankruptcy proceedings under the caption In re Dana Corporation, et al., Case No. 06-10354 (BRL), seeking to amend its $1.45 billion debtor-in-possession (DIP) credit agreement. The motion is scheduled to be heard by the court on Jan. 24, 2007.

Among other things, Dana intends to reduce the amount of its unused revolving credit facility under the DIP credit agreement to correspond with changes in its borrowing base. As it continues to sell its non-core assets, these changes will adjust the structure of Dana’s debt facilities to more closely align with the needs of the business. In order to ensure that Dana continues to have adequate liquidity notwithstanding such reduction, Dana is seeking court approval for an increase in the amount available under its term loan facility from $700 million to $900 million, as well as for certain financial covenant modifications and technical changes to its DIP credit agreement. Citigroup Corporate and Investment Banking, the administrative agent for the lenders under the DIP credit agreement, has agreed to underwrite the proposed increase in the term loan facility.

“While we are pleased with the restructuring progress that Dana has achieved over the past nine months, especially under challenging market conditions, the additional funding and financing flexibility that will result from the proposed amendment position us to complete our restructuring and emerge from Chapter 11,