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D A N A C O R P O R A T IO N / Annual Report 2001 And while we can argue semantics, the bottom line is that as long as our economy and our customers are cyclical, so too is our business. Our charge, then, is to evolve our business model into one that is dynamic and flexible enough to withstand, and prosper in, this environment. Against this backdrop, a new business model has developed at Dana. This model represents a refinement of our business process, as we accelerate the shift from traditional asset-intensive manufacturing to a focus on deriving value from unique technologies and a We believe strongly in our collective future. network of partner ships serving our customers. This more efficient approach is designed to optimize our resources and improve capital efficiency. In doing so, we'll provide our customers with the products and services they desire. At the same time, this model will improve our return on invested capital and facilitate sustainable, long-term value for our investors. The key elements of our new business model involve: Streamlining our operations to achieve a higher plane of performance; Strengthening our foundation businesses through an intensified focus on core content; Expanding our focus on modularity and systems integration; Leveraging strategic alliances to expand our capabilities at reduced levels of investment; Developing even more proprietary, uniquely valuable technologies; and Partnering with a strong base of reliable suppliers. In April, President George W. Bush and U.S. Secretary of Transportation Norman Y. Mineta (at left) presented the Malcolm Baldrige National Quality Award to Dana Chairman and CEO Joe Magliochetti (second from left), and Joe Sober, vice president and general manager of Dana's Torque Management Group. With the planned sale of DCC and the combination of our former Engine Systems and Fluid Systems business units, we essentially streamlined, and more tightly focused, our operations. The result is business units serving five distinct market segments: automotive systems, the automotive aftermarket, engine and fluid management, commercial vehicle systems, and off-highway systems. We further sharpened our focus on foundation businesses with the divestiture of non-core operations accounting for more than $235 million in proceeds. 7