Goodyear Reduces Holdings in Sumitomo Rubber Industries

AKRON, Ohio, April 8 -- As part of its ongoing plan to enhance the company's financial flexibility, The Goodyear Tire & Rubber Company today announced that it has reduced its ownership stake in Japan's Sumitomo Rubber Industries, Ltd.

Goodyear, which acquired a 10 percent ownership of Sumitomo as part of their 1999 global alliance, today sold 20.83 million shares for approximately $83.4 million. Sumitomo bought 20.33 million of these shares. Goodyear, which now holds about 1.5 percent of Sumitomo, will take a non-cash charge of approximately $10 million (6 cents per share) related to the transaction in the second quarter.

"Our alliance and partnership with Sumitomo remains strong," said Robert J. Keegan, Goodyear president and chief executive officer. "Our joint ventures are successful."

The companies have six joint ventures, including tire manufacturing and sales operations in North America and Europe.

Goodyear said it will use most of the proceeds of the transaction to reduce debt.

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, 2002 which is 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.