Goodyear in Bank Discussions to Enhance Financial Flexibility

    AKRON, Ohio, Feb. 6 -- As part of a plan to enhance
the company's financial flexibility, The Goodyear Tire & Rubber Company
today announced it has been engaged in meetings with
representatives of its principal bank lenders about modifying certain loan
agreements, including covenants within those agreements.
    "The successful completion of these actions, accompanied by steps we have
taken to enhance our revenue, improve our cost structure, preserve cash and
strengthen our balance sheet, should provide us the financial resources,
including access to capital markets, to meet the ongoing needs of our business
and drive our turnaround," said Robert J. Keegan, Goodyear president and chief
executive officer.
    The lenders have granted Goodyear waivers until March 7 to comply with
certain covenants that would have required the company to contribute
approximately $500 million to its pension plans in excess of federally
mandated requirements. The covenants also would have required the company to
maintain a minimum net worth, which could be impacted by non-cash adjustments
for minimum pension provisions and/or a valuation allowance related to
domestic deferred tax assets.
    Under the waivers, Goodyear has full access to approximately $1.1 billion
in two revolving credit facilities.  In addition to these facilities, at the
end of January, Goodyear had more than $600 million in cash on hand.  Goodyear
also has approximately $300 million in other committed and $400 million in
uncommitted lines of credit available as of December 31, 2002.
    Additionally, the company said that its domestic accounts receivable
facility was amended in December 2002 and extended until December 2003 by a
group of four banks.  The program had been set to expire in February 2003.
Among the amended terms was a change in the minimum credit rating requirement
to BB-/Ba3 and the size was adjusted to $700 million.  The company also has
international accounts receivable facilities totaling approximately
$400 million.
    "We look forward to completing the review of our business and financial
plans with our banks.  We believe with these plans we can and will
successfully meet the current challenges in our business, build on our
continuing strengths and bring Goodyear to improved levels of operational and
financial performance," Keegan said.
    The company said that it will release its 2002 financial results following
the conclusion of its bank discussions.
    Goodyear is the world's largest tire company.  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 92,000 people worldwide.
    Certain information contained in this press release constitutes forward-
looking statements for purposes of the safe harbor provisions of The Private
Securities Litigation Reform Act of 1995.  Actual results may differ
materially from those indicated by such forward-looking statements as a result
of various economic, financial and industry factors including without
limitation the company's ability to implement its cost-cutting plans and
achieve its sales targets.  Additional factors that may cause actual results
to differ materially from those indicated by such forward looking statements
are discussed in the company's Form 10-K for the year ended Dec. 31, 2001 and
Form 10-Q for the quarter ended Sept. 30, 2002, which are on file with the
Securities and Exchange Commission.  In addition, any forward-looking
statements represent our estimates only as of today and should not be relied
upon as representing our estimates as of any subsequent date.  While we may
elect to update forward-looking statements at some point in the future, we
specifically disclaim any obligation to do so, even if our estimates change.