Dana Venezuelan Affiliate Reports Significant Loss

Dec 15, 2000

    TOLEDO, Ohio, Dec. 15 /PRNewswire/ -- Dana Corporation (NYSE: DCN)
reported today that C.A. Danaven, a Venezuelan affiliate in which it holds a
49-percent interest, will report a significant loss for the fiscal year 2000.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    According to officials of Danaven's majority shareholder, Siderurgica
Venezolana "Sivensa," S.A. (OTC: SDNZY), it became apparent during the year-
end audit process that there were significant irregularities in the Danaven
accounts.  Dana is currently working with Sivensa and Danaven's independent
auditors to determine the causes of the loss.  Dana will record its share of
the loss, approximately $27 million, in the fourth quarter.
    "The news of this loss and its magnitude were a surprise to both
partners," said Gus Franklin, President - Dana International.  "For more than
a decade, Danaven has been one of Dana's most successful operations in South
America.  Dana is working closely with its partner toward resolution of these
issues. We have already made significant changes in the management team and
are investigating the source of the problems and taking appropriate corrective
    Dana established its presence in Venezuela during the late 1960s.  Sivensa
became a shareholder in Danaven in 1972 and majority owner in 1976.  Caracas-
based Sivensa manufactures semi-finished and finished steel products for the
rolling and construction industries respectively, iron-ore briquettes for the
steel sector, automotive products for the original equipment and replacement
markets, and wire for industrial and agricultural use.
    Headquartered in Valencia, Venezuela, Danaven manufactures and exports a
variety of automotive products, including axles, frames, and foundry
    Dana Corporation is one of the world's largest suppliers to vehicle
manufacturers and their related aftermarkets.  Founded in 1904 and based in
Toledo, Ohio, the company operates approximately 320 major facilities in 32
countries and employs more than 80,000 people.  The company reported sales of
$13.2 billion in 1999.  Dana's Internet address is http://www.dana.com .

SOURCE Dana Corporation

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

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