Dana Corporation Completes Sale of Trailer Axle Manufacturing Assets to Hendrickson

TOLEDO, Ohio, Jan. 8, 2007 /PRNewswire-FirstCall/ -- Dana Corporation (OTC: DCNAQ) (BULLETIN BOARD: DCNAQ) today announced that the company and its subsidiary, Dana Canada Corporation, have completed the sale of their trailer axle manufacturing assets to Hendrickson USA, L.L.C., a subsidiary of The Boler Company, and its affiliates.

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

The U.S. and Canadian assets, which include trailer axle production equipment, inventory, and related assets at facilities in Lugoff, S.C., USA, and Barrie, Ontario, Canada, were sold for a combined U.S. $31 million, subject to inventory adjustments at closing.

Additionally, a Chinese affiliate of Hendrickson has established a U.S. $2 million escrow for the purchase of certain trailer axle production equipment, inventory and related assets from Dana's Chinese subsidiary Dana (Wuxi) Technology Co. Ltd. Dana expects that the sale of the Wuxi assets will close in the first quarter of 2007.

Dana Heavy Vehicle Products President Nick Stanage said, "The sale of the trailer axle assets enables Dana's Commercial Vehicle group to concentrate its resources on its core products and competencies - drive and steer axles, driveshafts, brakes and tire inflation systems for commercial vehicles."

In conjunction with these transactions, Bendix Spicer Commercial Vehicle Foundation Brake LLC, a joint venture in which Dana has an interest, has entered into an agreement to supply certain of Hendrickson's requirements for Bendix® brake products and systems through 2013.

About Dana Corporation

Dana is a leading supplier of drivetrain, chassis, structural, and engine technologies. Dana people design and manufacture products for every major vehicle and engine producer in the world. Based in Toledo, Ohio, with operations throughout 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. The company's continuing operations reported sales of $8.6 billion in 2005. Dana's Internet address is: http://www.dana.com/.

Dana and certain of its U.S. subsidiaries are operating under Chapter 11 of the U.S. Bankruptcy Code as debtors in possession. Information about the bankruptcy proceedings can be found at: http://www.dana.com/reorganization. While Dana continues its reorganization under Chapter 11, investments in its securities are highly speculative. Although shares of Dana common stock continue to trade on the OTC Bulletin Board (OTCBB) under the symbol "DCNAQ," the trading prices of the shares may have little or no relationship to the actual recovery, if any, by the holders under any eventual court-approved reorganization plan. The opportunity for any recovery by holders of Dana common stock under such reorganization plan is uncertain and shares of Dana common stock may be cancelled without any compensation pursuant to such plan.

Forward-Looking Statements

Statements in this release regarding the closing of the asset sale by Dana (Wuxi) Technology Co. Ltd. constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent Dana's expectations based on its current information and assumptions, but there can be no assurance that the sale of these assets will close as contemplated. Dana does not undertake to update any forward-looking statements in this release.

   Contact:
   Chuck Hartlage
   (419) 535-4728
   chuck.hartlage@dana.com

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SOURCE: Dana Corporation

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

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

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