With sales of $36 million (AU $55 million) in 1998, Truckline Parts Centres is Australia's largest independent specialist distributor of heavy- duty parts. The business consists of a nationwide company-owned and -operated network of 24 retail outlets across Australia, as well as 13 driveline repair and remanufacturing facilities. The operations employ 190 people.

"This transaction reinforces Dana's on-going commitment to increase shareholder value by further focusing our operations through the divestiture of non-strategic businesses," said Joe Magliochetti, Dana president and CEO. "This is our fourth divestiture this year, demonstrating Dana's resolve to implement our Five-Point Plan."

Rick Clayton, president of Dana's Heavy Truck Group, said, "We are very pleased with the agreement we have reached. The sale of this operation fits our strategic plan and allows us to concentrate on growing our core businesses in the region."

Gerry Turek, managing director of Dana Australia, said, "Dana has a long and valued relationship with Iveco. I am pleased that our Truckline people will be with a company where they will have additional opportunities for growth and success."

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.