Goodyear Monthly Investor Update

AKRON, Ohio, Sept. 23 -- Goodyear's Investor Relations department today published its monthly update for the sole purpose of providing information to individuals interested in tracking Goodyear's progress on a more frequent basis. This is not a general update of material developments concerning Goodyear.

  August Operating Highlights
  North American Tire

- Industry shipments of consumer replacement tires grew 4 percent from last year's levels. Goodyear gained market share as its shipments of consumer replacement tires increased more than the industry.

- In August, industry shipments of consumer tires to original equipment manufacturers declined 11 percent from August 2002 levels. Goodyear's shipments of consumer tires to OEMs declined less than the industry.

- Industry shipments of commercial replacement tires declined 10 percent in August from last year's levels. Goodyear's shipments of commercial replacement tires declined more than the industry. In addition, product mix was unfavorable due to market share gains in the Dunlop, Kelly and associate brands.

- Goodyear shipments of OE commercial tires declined at about the same rate as the industry, which dropped 10.5 percent in August compared with year-ago levels.

- Segment operating income declined year-over-year due to significantly higher raw material and energy costs. Conversion costs were higher due to lower production volume and higher wage and benefit costs.

- The United Steelworkers of America completed ratification of a new three-year labor agreement on September 15.

- North American Tire will eliminate by the end of September approximately 500 salaried and non-bargaining unit positions at its manufacturing locations. The reductions will affect management and staff positions at most manufacturing plants throughout North America. Each location is developing its own restructuring plan for achieving the reductions.

- Stephen McClellan, who most recently engineered the financial turnaround of the company's Wingfoot Commercial Systems business as president of the Fort Smith, Ark., based operation, has been named vice president of North American Tire's commercial business. McClellan, 38, joined Goodyear in 1988.

- North American Tire has named Jack Winterton to the position of vice president of replacement sales in a move designed to continue the company's ongoing efforts to provide best-in-class customer service in the tire industry. Winterton, who spent many years in Goodyear's Kelly Tire sales organization, was most recently director of field sales for consumer tires, and will now assume overall responsibility for replacement tire sales through all channels of distribution.

- Michael M. Rajkovic has been named vice president of finance for North American Tire. Rajkovic, 42, was previously director of exterior products manufacturing and direct ship operations for Visteon Corp. Rajkovic joined Visteon in 2000 when the parts maker was spun-off from Ford Motor Co. At Visteon, he also served as director, finance and business strategy for energy transformation systems; controller, global manufacturing finance and business operations; and director, exterior products manufacturing.

European Union

- In August, industry shipments of replacement tires increased 4 percent for consumer tires and declined 5 percent for commercial tires compared with prior year levels. Goodyear gained market share in both the replacement consumer and commercial tire segments compared with 2002.

- Industry shipments of OE consumer tires grew 8 percent from August 2002 levels. Goodyear OE consumer tire shipments significantly underperformed the industry.

- Industry OE commercial tire shipments declined 2 percent from August 2002 levels. Goodyear shipments of commercial tires to OE increased in August 2003 compared with August 2002.

- Segment operating income approximated last year's levels as improved price and mix was offset by higher raw material costs.

- The Euro weakened against the Dollar in August by 3 percent.

- The European Consumer Product business unit was formed on September 1. Arthur de Bok, formerly the vice president of sales and marketing, will lead the business.

- Manuel Pintado was named as the head of the Farm Product business unit as of September 1, replacing David Stanton who retired from Goodyear after 35 years of service.

Eastern Europe

- Goodyear gained market share in the consumer replacement and OE tire market in August 2003 compared with August 2002.

- Goodyear tire sales in the commercial replacement market grew while sales to OE manufacturers declined in August.

- Segment operating income increased due to higher volumes and favorable currency translation, partially offset by unfavorable raw material and conversion costs.

Latin America

- Goodyear consumer replacement tire shipments increased in August 2003 versus last year.

- Original equipment tire sales declined due to Goodyear's selective OE strategy and reduced production by vehicle manufacturers in the region.

- Total sales were above 2002 levels, driven by improved sales mix in the replacement market.

- Segment operating income improved due to favorable product mix and pricing partially offsetting the adverse impact of raw material costs.

  - The Brazilian Real revalued 0.1 percent in August.

  Asia

- Goodyear original equipment tire shipments for August increased significantly from 2002 levels.

- Replacement tire shipments for Goodyear declined in August 2003 compared with the prior year period.

- Segment operating income declined year-over-year due to higher raw material costs, offsetting favorable price and mix.

Engineered Products

- Sales increased compared with August 2002 due to strong military sales in the United States and strong conveyor belt sales out of South Africa.

- Segment operating income improved as a result of lower Research & Development and Sales General & Administrative expenses, as well as increased volume over 2002.

- Engineered Products is benefiting from strong sales of military tank track due to the harsh terrain and ongoing fighting in Iraq.

Chemical

- Segment operating income improved on significantly higher sales. Increased pricing was partially offset by higher raw material and energy costs.

Corporate News

- Richard J. Kramer, formerly vice president of finance for North American Tire, has been named the company's senior vice president, strategic planning & restructuring. Kramer, 39, who has been leading the finance team in Goodyear's largest business since July 2002, joined the company in 2000 as vice president, corporate finance, after 13 years with PricewaterhouseCoopers LLP.

- Thomas A. Connell, 54, formerly vice president and corporate controller for TRW Inc., joined Goodyear as vice president and controller. Connell joined TRW in 1979 as manager of financial accounting. He was named director of financial reporting in 1983; finance director and controller, valve division in 1986; and finance director and controller, engine components in 1987. He became vice president of finance, occupant restraint systems in 1990 and was named to his most-recent position in 1996.

Goodyear is the world's largest tire company. Headquartered in Akron, Ohio, the company manufactures tires, engineered rubber products and chemicals in more than 85 facilities in 28 countries. It has marketing operations in almost every country around the world. Goodyear employs about 92,000 people worldwide.

This Newsletter may contain 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 economic conditions, including interest rate and currency fluctuations and other risks described in Goodyear's filings with the Securities and Exchange Commission.