Dana Corporation Completes Sale of Engine Hard Parts Business to MAHLE GmbH

TOLEDO, Ohio, March 9, 2007 /PRNewswire-FirstCall/ -- Dana Corporation (OTC: DCNAQ) (BULLETIN BOARD: DCNAQ) announced today that it has completed the sale of its engine hard parts business to MAHLE GmbH for an aggregate cash payment of approximately $97 million.

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

The engine hard parts business consists of 39 facilities, which manufacture piston rings, engine bearings, cylinder liners, and camshafts under the Perfect Circle®, Clevite®, and Glacier Vandervell® brands. With annual revenues of approximately $670 million in 2005, the engine hard parts operations employ approximately 5,000 people in 10 countries.

Dana expects to record a non-cash, pre-tax charge of $30 million to $35 million in the first quarter of 2007 in connection with the completion of this divestiture.

  Other terms of the transaction include:
   - MAHLE acquires the exclusive distribution rights to Dana's retained
     Victor Reinz® branded products in the independent aftermarket in the
     United States and Canada;
   - Three facilities in Argentina and Italy will be transferred to MAHLE
     upon completion of specific closing conditions in these locales; and
   - MAHLE assumes certain liabilities related to the engine hard parts
     business.

Dana Chairman and CEO Mike Burns said, "This divestiture is an important step in implementing Dana's reorganization initiatives and sharpening our focus on our core axle, driveshaft, structural, sealing, and thermal products businesses for the automotive, commercial vehicle, and off-highway markets."

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.

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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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