Goodyear Releases Monthly Investor Update

AKRON, Ohio, June 19 Goodyear's Investor Relations department today published its monthly update for individuals interested in tracking Goodyear's progress on a more frequent basis.

May Operating Highlights

North American Tire * In May, industry shipments of consumer replacement tires were 4 percent below last year's levels. Goodyear shipments were also down and below industry shipment levels.

* Goodyear's shipments to its large wholesalers continued to improve in May. However, volumes are still not back to last year's levels, resulting in a less-favorable brand and product mix for replacement tires.

* In May, industry shipments of commercial replacement tires were down 3 percent from last year's levels. Goodyear's shipments of commercial replacement tires were also down and below industry shipment levels.

* Industry shipments in May to original equipment customers were up almost 1 percent from a year ago for consumer tires and up 14 percent for commercial tires as commercial vehicle manufacturers continue to build ahead of regulation changes. Goodyear's OE unit shipments were better than the industry for consumer tires but below the industry for commercial tires.

European Union * In May, industry replacement tire shipments were down 6 percent for consumer tires and down 2 percent for commercial tires compared to prior year levels. Both Goodyear's consumer and commercial shipments were below industry shipment levels.

* Industry and Goodyear OE consumer tire shipments were down about 4 percent compared to the prior year. The OE commercial tire business continues to be weak as industry and Goodyear commercial tire shipments were down almost 8 percent.

* Operating income in May was negatively impacted by lower volume. However, this was more than offset by lower raw material costs.

* The Euro, at 0.93 to the U.S. dollar, strengthened about 4 percent in May.

Eastern Europe * In May, 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 May were below last year due to continued softness in the Polish automotive industry.

* Lower raw material costs, improved mix, and productivity improvements due to higher capacity utilization have helped to improve operating income significantly over last year.

* In Turkey, the tire industry successfully concluded Union negotiations in May, potentially averting a strike by tire industry workers.

Latin America * May tire unit sales were down from last year primarily due to a timing reduction in export shipments. * May OE tire unit sales were up from last year due to increased commercial volume in Mexico and Brazil.

* Mix improvements, lower raw material costs and productivity gains due to higher capacity utilization, all contributed to an operating income performance above prior year.

* Currencies devalued 19 percent in Argentina and 6 percent in Brazil, in the month of May.

Asia * May replacement and OE tire unit sales were below last year's levels.

* Higher capacity utilization and lower raw material costs helped to increase operating income above last year.

Engineered Products * May sales increased slightly over prior year due to strong shipments of OE and military products.

* Higher capacity utilization and lower raw material costs have helped improve operating income.

Chemicals * In May, sales were impacted by reduced sales volume of synthetic rubber to the tire industry.

* Despite lower sales, operating income in May was above prior year levels.

Corporate News * The BRV - Germany's national tire trade association - has named Goodyear the most reliable tire manufacturer in that country. This is the fourth consecutive gold award for Goodyear Germany in the BRV's passenger vehicle category and the third straight in the truck category. Manufacturers are rated by the dealers according to certain criteria, such as product quality, diversity of product ranges and delivery.

* The Goodyear Eagle F1 GSD3 - a new European ultra high-performance tire featuring a revolutionary race-tire tread pattern - has been given top honors by two leading European automotive magazines. The new tire was voted best high-performance tire by the United Kingdom's EVO, and was at the top of Germany's Auto Bild list against six competitor tires.

* Brazil's INFO EXAME magazine named Goodyear Brazil as one of the leading companies in that country conducting business over the Internet. The magazine released the results of a survey conducted with the largest companies that are using business-to-business Web applications. Goodyear was ranked 14th out of 100, and was the only tire company on the list.

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 about 95,000 people worldwide.

This news release contains forward-looking statements based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed by such statements. These risks and uncertainties include price and product competition, customer demand, the ability to control costs and expenses, general industry and market conditions and general domestic and international economics, including interest rate and currency fluctuations.