Goodyear Responds To Continental Carbon Company Lawsuit

AKRON, Ohio, May 14 -- Continental Carbon Company issued a news release out of Houston today regarding a lawsuit that it says was filed on May 2, 2003 against Goodyear for $2.3 million for non-payment of invoices.

Goodyear has not been served yet and cannot comment on the specific allegations. Goodyear can confirm that it filed and served suit in Lawton, Okla., on May 8, against Continental Carbon Company seeking more than $4 million in damages related to delivery of defective carbon black that shut down production in the world's largest tire plant for more than two days in September of 2002. Goodyear has a contractual right to set off any amounts it owes to Continental Carbon Company based on the substantial damage to the company incurred by the plant shutdown.

The defective material from Continental Carbon Company was discovered through Goodyear's extensive quality systems and quick action was taken to ensure that none of the tires manufactured using the defective material reached consumers.

Goodyear is disappointed that Continental Carbon Company feels a need to "be vindicated" when the supplier abandoned its responsibility to Goodyear to provide quality product.