Firestone Reaches Agreement with State Attorneys General

    NASHVILLE, Tenn.--Nov. 8,2001--Bridgestone/ Firestone, Inc. announced today that it has reached a comprehensive settlement with the state Attorneys General representing 53 states and U.S. territories. The settlement relates to certain claims made by the Attorneys General in connection with the company's August 2000 recall.
    Firestone believes this universal settlement is another important step in the company's efforts to reach resolutions of recall related issues even though it strongly disagrees with many of the states' claims. Additionally, the company fully supports the tire safety and maintenance consumer education initiatives provided for in the agreement.
    "We have been working closely with the state Attorneys General on this issue for more than a year now, and believe that these efforts have allowed us to reach an acceptable agreement that permits us to focus our energies and our resources on rebuilding our company and the Firestone brand. While we take serious issue with many of the states' allegations, we believe that significant portions of the settlement, such as those related to consumer education, are very much in line with the company's own initiatives," said John T. Lampe, chairman, CEO and president, Bridgestone/Firestone, Inc.
    "This agreement reinforces the direction Firestone has taken through 'Making It Right,' our program which focuses on consumer education and in rebuilding public trust in our company. Keeping the public informed about proper tire maintenance and safety is critical and we support the states' decision to fund consumer information campaigns with a portion of the settlement proceeds," Lampe concluded.
    Provisions of the settlement are contained in the "Agreed Final Judgment," which was signed by Firestone and 53 states and territories. BFS will pay $500,000 to each state and territory involved in the investigation, with an additional $5 million designated for the consumer education campaign. Ten million dollars will be set aside to reimburse the states' attorneys' fees.
    In order to speed completion of the August 2000 recall (which concluded in August 2001), Firestone implemented a program to reimburse those consumers who had purchased competitive brands. As part of today's settlement, and in order to address the states' interest in confirming that consumers with legitimate claims under the program have received proper consideration and payment, Firestone will review claims that were previously denied and will provide a process for future review. It is expected that about 20% of those who participated in the reimbursement program may be eligible for reconsideration under the review and restitution program. Those who are eligible will be receiving a letter from the Attorneys General Multi-State Working Group in the near future.
    In addition to the consumer education campaign and the restitution program, the agreement outlines and reinforces Firestone's commitment to producing, selling and marketing safe and reliable tires. The two sides worked to reach a constructive compromise, the terms of which included no findings against Firestone or any admission of liability by the company. As noted in the Agreed Final Judgment, "(t)he parties desire to avoid the risks and expenses associated with further investigation and/or litigation."
    In September 2000, the Attorneys General formed the Multi-state Working Group following Firestone's recall of 6.5 million P235/75R15 ATX, ATX II and Decatur-produced Wilderness AT tires. Firestone has been actively cooperating with the states since that time to find an appropriate resolution.
    Firestone also announced today that, as of December 31, 2001, it is concluding its Customer Satisfaction Program initiated September 12, 2000 relating to tires that were part of the National Highway Traffic Safety Administration (NHTSA) Consumer Advisory dated September 1, 2000. The list of tires covered by the Consumer Advisory can be found on Firestone's website -- firestone.com - or customers can request a copy by calling the Consumer Hotline at 800/465-1904. A customer wishing to have the affected tires inspected and/or replaced can visit any one of the more than 8,500 participating Firestone retailers for free service. In addition, if a driver chooses to have the affected tires replaced at a competitor's tire store, Firestone will continue to honor requests for reimbursement as long as the request is complete and postmarked by December 31, 2001. This announcement follows the conclusion of the company's August 2000 recall and the announced closure of NHTSA's May, 2000 investigation into certain Firestone tires.

    Nashville-based Bridgestone/Firestone Inc. is the largest subsidiary of Bridgestone Corporation, the world's largest tire and rubber company. Bridgestone/Firestone develops, manufactures and markets Bridgestone, Firestone, Dayton, and associate and private brand tires. The company also produces Firestone air springs, roofing materials, synthetic rubber, and industrial fibers and textiles.