Gresen manufactures a wide range of hydraulic pumps, motors, cylinders, control valves, filters, and electronic controls for on- and off-highway vehicles. The business had sales of approximately $128 million in 1999 and employs nearly 1,000 people at facilities in Greenville, S.C.; Minneapolis; Sarasota, Fla.; and Cachoeirinha, R.S., Brazil.

"This divestiture reinforces Dana's on-going commitment to increase shareholder value by further focusing on our core products," said Joe Magliochetti, Dana president and CEO. "This move enables us to better position Dana strategically for the opportunities and challenges ahead. It also allows us to proceed more aggressively with our share repurchase program."

Southwood J. Morcott, Dana's chairman said, "Gresen is a solid business, with great products and people. This business fits well with Parker Hannifin and gives our people more opportunities for growth with a company where they will be core. This transaction also allows Dana to focus on growing its core businesses."

The sale is consistent with Dana's previously announced Five-Point Plan, which is a tactical link to the company's overall strategic plan. The Five-Point Plan provides elements for continued growth and increased profitability.

The plan includes the following five tactics:

• Grow while focusing on returns and maintaining financial discipline;
• Seek strategic, bolt-on acquisitions at reasonable valuations;
• Divest non-strategic and non-performing operations;
• Repurchase stock as the company generates cash; and
• Complete integration efforts and realize synergy savings.

(Feb. 3, 2000)