Dana Corporation Announces Agreement to Sell Automotive Aftermarket Business to Cypress Group

Dana Corporation Announces Agreement to Sell Automotive
Aftermarket Business to Cypress Group
Transaction to Enhance Dana's Strategic & Financial Flexibility 


TOLEDO, Ohio, July 9  /PRNewswire-FirstCall/ -- Dana Corporation (NYSE: DCN)
announced today that it has signed a definitive agreement to sell its
automotive aftermarket business to The Cypress Group for approximately $1.1
billion in cash.  The transaction, which is expected to close in the third
quarter of 2004, is subject to the purchaser's receipt of financing from
committed sources and other customary conditions, including the receipt of
regulatory approvals.

Dana Chairman and CEO Michael Burns said proceeds from the sale will be used
for a combination of reinvestment in the company's core businesses, and a
contribution to the company's pension plans and further reduction of Dana's
debt, both of which would be expected to accelerate the company's return to
investment-grade status.

"The completed transaction will provide Dana with important strategic and
financial flexibility, which will be used to further invigorate our core
businesses and better serve our global original equipment customers," Mr. Burns
said.  "Dana will be a more streamlined company that is better focused on
delivering world-class component and systems solutions to our customers in the
automotive, commercial vehicle, and off-highway markets."

The sale includes 52 facilities employing approximately 13,000 people
worldwide.  Combined annual sales for these operations totaled approximately $2
billion in 2003.  The transaction also involves several premier replacement
product brands and a variety of under-vehicle components.  As previously
announced, the business which Dana has agreed to sell does not include Dana's
distribution and marketing operations for its engine products, such as piston
rings, gaskets, and engine bearings, which Dana will retain as part of its
Automotive Systems Group.

"We believe the people of the automotive aftermarket business, its leadership
team, and its customers will be well served by their new association with The
Cypress Group, which has expressed its dedication to growing this business and
fully optimizing opportunities moving forward," Mr. Burns said.

Credit Suisse First Boston LLC and Goldman, Sachs & Co. are acting as financial
advisors to Dana for this transaction.

The Cypress Group is a New York based private equity group which manages two
private equity funds with more than $3.5 billion in commitments.  Cypress
invests in privately negotiated transactions, targeting operating businesses
and investing with management to foster continued growth. Investments made by
Cypress include Cinemark, Inc.; AMTROL, Inc.; Williams Scotsman, Inc.; WESCO
International, Inc.; ClubCorp, Inc.; Danka Business Systems PLC; MedPointe
Inc.; Montpelier Re Holdings, Ltd.; Republic National Cabinet Corp.; Catlin
Group Ltd.; The Meow Mix Company; Financial Guaranty Insurance Company (FGIC);
and Communications & Power Industries, Inc.  The Cypress website address is:
http://www.cypressgp.com/.

Dana Corporation is a global leader in the design, engineering, and manufacture
of value-added products and systems for automotive, commercial, and off-highway
vehicles.  Delivering on a century of innovation, the company's continuing
operations employ approximately 45,000 people worldwide dedicated to advancing
the science of mobility.  Founded in 1904 and based in Toledo, Ohio, Dana
operates technology, manufacturing, and customer-service facilities in 30
countries.  Sales from continuing operations totaled $7.9 billion in 2003.  The
company's Internet address is: http://www.dana.com/.

Forward-Looking Statements

Certain statements contained in this release 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.  Forward-looking statements are inherently subject
to risks and uncertainties.  Dana's actual results could differ materially from
those that are anticipated or projected due to a number of factors, including
the success and timing of the contemplated divestiture of the automotive
aftermarket business and other factors set out in our public filings with the
Securities and Exchange Commission.  Dana does not undertake to update any
forward-looking statements in this release.

   Contacts: Media Relations:         Investor Relations:
                  Fred Spar                Michelle Hards
                  Kekst and Company        Dana Corporation
                  [phone]           [phone]
                        

DATASOURCE: Dana Corporation



CONTACT:  Media Relations - Fred Spar of Kekst and Company,

[phone], , for Dana Corporation; Investor Relations

- Michelle Hards of Dana Corporation, [phone],





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

http://www.dana.com/ 

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