Dana Corporation and Dongfeng Motor Co. Ltd. Proceed with Joint Venture to Produce Commercial Vehicle Axles in China Under Amended Agreement

Dana Corporation and Dongfeng Motor Co. Ltd. Proceed with Joint Venture to Produce Commercial Vehicle Axles in China Under Amended Agreement

March 20, 2007

    SHANGHAI, China, March 20 /Xinhua-PRNewswire/ -- Dana
Corporation (OTC Bulletin Board: DCNAQ) announced today
that its subsidiary, Dana Mauritius Ltd., and Dongfeng
Motor Co. Ltd. have amended the agreement to develop their
50/50 joint venture, Dongfeng Dana Axle Co. Ltd.  Certain
terms of the original agreement with Dongfeng signed on
March 10, 2005, were renegotiated after Dana filed for
reorganization under Chapter 11 of the United States
Bankruptcy Code in March 2006.  

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

    Under the amendments and other agreements signed by
both companies - and subject to certain government
approvals, Dana Mauritius will make an initial payment of
38.8 million RMB (approximately USD 5 million) to Dongfeng
for a 4-percent equity interest in the joint venture. 
Closing of this part of the transaction is expected to be
completed by the end of March 2007.  Dana Mauritius will
purchase the remaining 46-percent equity interest after
April 1, 2008, and within three years of receiving the
aforementioned government approvals.

    Dana Mauritius will invest in an existing Dongfeng
subsidiary, which is China's largest commercial vehicle
axle manufacturer, to form Dongfeng Dana Axle. 
Headquartered in Xiangfan, China, the joint-venture company
will employ approximately 8,000 employees in three
production facilities in Xiangfan and Shiyan, as well as a
research and development center that will be established. 
The technical center will support Dongfeng Dana Axle's
commitment to providing its customers with world-class
manufacturing processes and axle components and systems.  

    "We are very pleased to reach this milestone with
Dongfeng," said Nick Stanage, president of Dana's
Heavy Vehicle Products group.  "Dongfeng Dana Axle
will be the largest commercial vehicle axle supplier in
Asia.  For Dana's Commercial Vehicle Systems business, this
joint venture also provides a great opportunity to balance
and complement our extensive operations in North
America."

    Another term of the joint venture agreement between
Dana and Dongfeng is Dana licensing certain commercial
vehicle axle technology to Dongfeng Dana Axle for the term
of the joint venture. 

    Dana has seven other joint ventures in the Asia-Pacific
region, including two in China.  With more than 4,300
employees in 18 facilities in the region, Dana produces
axles, propshafts, structures, and sealing and
thermal-management products for a host of light- and
heavy-vehicle manufacturers. 
 
    About Dongfeng Motor Co. Ltd. 

    Dongfeng Motor Co. Ltd. is a joint venture between the
state-owned Dongfeng Motor Group Company Ltd. and a Chinese
subsidiary of Nissan Motors.  Dongfeng Motor Group was
founded in 1969 and with its affiliates ranks as one of the
three largest vehicle makers in China.  Dongfeng Motor Co.
Limited produces a broad range of light-, medium-, and
heavy-duty trucks, as well as buses and passenger cars. 

    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 Dana's investment
in its joint venture with Dongfeng Motor 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. 
Forward-looking statements are inherently subject to risks
and uncertainties.  Actual results could differ from those
that are anticipated and there can be no assurance that
this sale will be completed as contemplated.  Dana does not
undertake to update any forward-looking statements in this
release.


    For more information, please contact:

     Chuck Hartlage
     Dana Corporation
     Tel:    [phone]
     Email:  [e-mail]