Goodyear Releases Monthly Update

AKRON, Ohio, May 21-- Goodyear's Investor Relations department today published its monthly update for individuals interested in tracking Goodyear's progress on a more frequent basis.

April Operating Highlights

North American Tire * In April, industry shipments of consumer replacement tires were more than 3 percent above last year's levels. Goodyear shipments were in line with industry shipments. * In April, industry shipments of commercial replacement tires were down almost 3 percent from last year's levels. Goodyear's shipments of commercial replacement tires were up 6 percent. While increasing year- over-year, shipments are still well below historical levels. * Industry shipments in April to Original Equipment customers were up 13 percent from a year ago for both consumer and commercial tires. Goodyear's OE unit shipments were better than the industry for consumer tires but below the industry for commercial tires. * Operating income in April benefited from slightly lower raw material costs. * Goodyear's shipments to its large wholesalers improved in April as industry retail demand for tires picked up somewhat versus the first quarter. However, volumes are still not back to last year's levels resulting in a less-favorable brand mix for replacement tires.

European Union * In April, industry replacement tire shipments were up almost 7 percent for consumer tires and up 8 percent for commercial tires compared to prior year levels. Goodyear consumer shipments were flat primarily due to price increases implemented in the UK on April 1, 2002. Goodyear commercial shipments were up but slightly below industry shipments. * Industry and Goodyear OE consumer tire shipments were up compared to the prior year. The OE commercial business continues to be weak as industry and Goodyear commercial tire shipments were down. * Operating income in April benefited from higher capacity utilization and lower raw material costs. * The euro, at 0.90 to the U.S. dollar, strengthened about 3 percent in April.

Eastern Europe * In April, Goodyear replacement tire unit sales were up significantly from 2001, primarily due to overall market recovery in South Africa, Slovenia and Turkey. * OE tire unit sales for Goodyear in April were about flat with last year due to continued softness in the Polish automotive industry. * Higher capacity utilization and an improved mix, have helped to improve operating income. * In Turkey, the tire industry began negotiations with union representatives in April, and Goodyear experienced some production slowdown.

Latin America * April replacement and OE tire unit sales were up from last year primarily in Brazil and Mexico. * Lower raw material costs, mix improvements and higher volume, all contributed to an operating income performance above prior year. * Currencies devalued 4 percent in Mexico and 2 percent in Brazil, in the month of April.

Asia * April replacement tire unit sales were flat with last year. OE unit sales were up primarily due to increased sales in India and the Philippines. * Lower raw material costs were offset by a negative mix effect.

Engineered Products * April sales increased over prior year due to strong shipments of OE, military and industrial belts and hoses. * Higher sales and better capacity utilization have helped improve operating income.

Chemicals * In April, sales were impacted by reduced sales volume of synthetic rubber to the tire industry. * Despite lower sales, operating income is in line with prior year levels.

Corporate News * In a move that further strengthens its position in the growing Eastern European market, Goodyear has acquired an additional 20 percent stake in Sava Tires, 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 sold half of its 40 percent ownership. * Goodyear was the only tire company to win an Automotive News PACE Award, one of the most prestigious awards in the global auto industry, for its most durable off-road tire, the Wrangler MT/R. The tire won in the "product innovation" category. The awards recognize innovations in new products or services that have significant market impact and act as "game changers" in the automotive industry. * Prestigious German automaker BMW Group has approved another Goodyear run-flat tire for the North American market. MINI USA, a division of BMW NA, recently chose 17-inch Goodyear Eagle RS-A EMT all-season run- flat tires on the supercharged 163-horsepower 2002 MINI Cooper S. Manufactured in Fulda, Germany, the tire is V speed-rated for sustained speeds up to 150 MPH. Earlier, BMW certified Goodyear Eagle NCT 5 EMT run-flat tires as a summer tire on MINI cars. By mid-year, more than 80 percent of all MINIs coming to America will be on either Goodyear or Dunlop run-flat tires. * Goodyear has recently received three prestigious awards from Japan-based automakers. Toyota Motor Corp. honored the company with two awards at its annual suppliers meeting. Goodyear received a "Global Contribution Award" for its supply performance at more than 15 Toyota plants worldwide and a "Value Award - Superior" for its technical approvals and tire developments on the Corolla and Camry. Subaru-Isuzu Automotive Inc. awarded Goodyear its 2001 "Quality Achievement Award" in a recent ceremony held in West Lafayette, Ind. * To meet the growing North America demand for its truck tire retreading systems, Goodyear has announced plans to double seamless tread production capability at the company's Social Circle, Ga., retread facility. Goodyear will acquire six additional presses to produce treads for the UniCircle Retread System. This investment is included as part of Goodyear's 2002 capital expenditure plan.