Goodyear Increases Ownership Share in Slovenia's Sava Tires

AKRON, Ohio, May 6, In a move that further strengthens its position in the growing Eastern European market, The Goodyear Tire & Rubber Company has acquired an additional 20 percent stake in Sava Tires d.o.o., a joint venture tire manufacturing company in Kranj, Slovenia. Goodyear now owns 80 percent of the rapidly expanding company.

Goodyear purchased the additional share in Sava Tires for approximately $38.5 million as part of an agreement under which Sava d.d., sold half of its 40 percent ownership in the joint venture company. Goodyear also has the right to buy Sava's remaining 20 percent interest during various periods in 2004 and 2005.

"We are very pleased to further strengthen our position with Sava Tires," said Jarro Kaplan, president of Goodyear's Eastern Europe, Middle East and Africa Region.

"Since acquiring a 60 percent stake in the joint venture in 1998, we have seen Sava Tires grow successfully as a supplier of quality products not only to the Slovenian market, but also to an increasing number of countries in both Western and Eastern Europe. Goodyear has invested more than $90 million in modernization at Sava Tires and expects the company to continue to make rapid progress," he said.

"Sava's 80-year-old rubber manufacturing tradition, coupled with Goodyear's extensive modern marketing, technology and distribution expertise, has been a perfect partnership with customers in the region being the beneficiaries," Kaplan added.

At its plant in Kranj, Sava Tires manufactured more than six million tires for cars, light trucks and commercial trucks during 2001. The company has 1,400 associates and posted 2001 sales in excess of $230 million.

Goodyear has three additional tire manufacturing facilities in Eastern Europe: in Debica, Poland and in Izmit and Adapazari in Turkey.

Goodyear is the world's largest tire company. Headquartered in Akron, Ohio, the company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world. Goodyear employs 95,000 people worldwide.