Goodyear Concludes Overseas Accounting Investigation

AKRON, Ohio, April 12 -- The Goodyear Tire & Rubber Company announced today that the investigation into its overseas accounting has been concluded. While the results are currently being reviewed, it is expected that the reduction to net income between 1997 and 2003 identified through the investigation will total approximately $10 million, with most of it impacting the company's European Union business.

Upon completion of this review, Goodyear plans to file its 2003 Annual Report on Form 10-K and its amended 2002 10-K by mid-May.

"This investigative process was thorough and we are pleased to have it behind us," said Robert W. Tieken, executive vice president and chief financial officer. "We look forward to issuing our financial results and refocusing all of our energies toward Goodyear's ongoing turnaround efforts."

The accounting investigation was requested by the company's Audit Committee and announced on Dec. 10, 2003. On Feb. 11, the company said it was extending the investigation from Europe to other overseas operations. On March 9, Goodyear reported that it took disciplinary actions against several senior managers in its European Union operation in connection with the investigation.

The company also has identified additional adjustments to those previously disclosed in its Sept. 30, 2003 Form 10-Q that are expected to result in a reduction in net income of approximately $65 million between 1997 and 2003. The adjustments include $20 million related to workers' compensation claims, $10 million to the aforementioned investigation, $10 million to fixed assets, $8 million to product liability, $7 million to intercompany profit elimination in inventory and $10 million to other items.

Because the company will not file its 2003 Form 10-K by April 19, as required in its loan agreements, Goodyear said it is in discussions with lenders to extend the deadline by 30 days. While Goodyear does not expect to need to access the facilities during this 30-day period, in the absence of an extension, the company would not be able to access them. In that case, it would have until May 19 to file financials and regain access. If Goodyear does not file financials by May 19, there could be an event of default under the loan agreements and thereafter under other debt instruments.

Goodyear said it continues to cooperate fully with the U.S. Securities and Exchange Commission in its review of the company's 2003 restatement of prior- period financial results.

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 88,000 people worldwide.

Certain information contained in this press release may constitute 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 factors, including, without limitation, the ongoing investigation by the SEC regarding Goodyear's accounting restatement and the implementation of the Company's plan to improve internal controls. The audit of the company's 2003 financial statements and the adjustments to prior period financial statements is not complete. Therefore, it is possible that amounts mentioned above may change. 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, and Form 10-Q for the quarter ended Sept. 30, 2003, and Form 8-K dated Feb. 11, 2004, 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.