20th May 2008 - Dana Reports First-Quarter 2008 Results

Dana Holding Corporation has announced its first-quarter 2008 results. As a result of its January 31 emergence from Chapter 11 reorganization, Dana's first-quarter financial statements include two months presented under the provisions of "fresh start" accounting required for companies emerging from reorganization.

Dana delivered improved profitability in the first quarter of 2008 versus the same period one year ago, highlighted by:

"We are making progress in our turnaround effort despite a tough environment," said Executive Chairman John Devine. "As discussed earlier this year, we have much more to do and remain focused on our top priorities. With a new management team coming together, a strong balance sheet, and a clear sense of urgency, we are committed to repositioning Dana for a strong future."

Added Chief Executive Officer Gary Convis, "As we pursue improved financial performance, we are taking aggressive actions to enhance our operational excellence. Chief among these are the establishment of shared, targeted metrics across all of our businesses; the implementation of the Dana Operating System, a coordinated approach to drive continuous improvement throughout our operations; and the review of our global manufacturing footprint to ensure that we are producing the right products in the right places to best serve the needs of our customers."

Business Segment Highlights

First-quarter EBITDA for Dana's Automotive Systems Group (ASG) totaled $109 million, compared to $72 million in 2007. Sales increased $106 million compared to 2007. Each of the ASG businesses was adversely impacted by the effects of lower North American volume, including the effects of a labor disruption at a major automotive parts supplier. Offsetting the weakness in the North American markets were stronger production levels elsewhere in the world, currency, and benefits from customer pricing actions.

EBITDA for Dana's Heavy Vehicle Systems Group (HVSG) totaled $60 million for the first quarter of 2008, compared to $56 million last year. The group's Commercial Vehicle segment reported a sales decline of 10 percent, primarily because of lower North American production following the buying surge in advance of 2007 emission regulations. The Off-Highway Products segment reported a $95 million increase in sales compared to the first quarter of 2007. Off-Highway sales benefited from increased production, new programs, and currency.

Unprecedented Steel Costs Contribute to Challenging Environment

In addition to vehicle production declines in several North American sectors, Dana's results are being significantly impacted by steel costs. Dana purchases approximately 1.5 million tons of steel and products with significant steel content annually. Average prices for scrap and hot-rolled steel increased by approximately 30 percent during the first quarter of 2008, and prices have continued to climb. While the company has taken certain available measures to mitigate these costs, at average scrap steel prices of $525 per ton for 2008, Dana could experience an adverse impact of $70 million to $100 million on the annual cost of its steel and steel-based products.

About Dana Holding Corporation

Dana is a world leader in the supply of axles; driveshafts; and structural, sealing, and thermal-management products; as well as genuine service parts. The company's customer base includes virtually every major vehicle manufacturer in the global automotive, commercial vehicle, and off- highway markets, which collectively produce more than 70 million vehicles annually. Based in Toledo, Ohio, the company's operations employ approximately 35,000 people in 26 countries and reported 2007 sales of $8.7 billion. For more information, please visit: http://www.dana.com/