Goodyear Completes Redemption of $650 Million in Notes

AKRON, Ohio, March 3 -- The Goodyear Tire & Rubber Company said today it has completed its previously announced redemption of its outstanding $650 million of senior secured notes due 2011.

The redemption will result, as previously indicated, in annualized interest expense savings of approximately $75 million to $80 million, of which about $65 million will be realized in 2008.

"Eliminating this high-cost debt is an important step in our debt reduction plan," said Damon J. Audia, Goodyear's vice president and treasurer. "Since January 2007, we have removed more than $3 billion in debt from our balance sheet."

The senior secured notes were comprised of $450 million of fixed rate notes, which bore interest at 11.25%, and $200 million of floating rate notes, which bore interest at LIBOR plus 825 basis points.

Audia also confirmed the company's previously announced intention to repay $100 million in 6 3/8 % notes when they mature on March 17, 2008.

Goodyear is one of the world's largest tire companies. The company employs about 70,000 people and manufactures its products in more than 60 facilities in 26 countries around the world. For more information about Goodyear, go to www.goodyear.com/corporate.