Goodyear Completes Purchase of Slovenia's Sava Tires

AKRON, Ohio, June 29 -- The Goodyear Tire & Rubber Company has completed its previously announced acquisition of the remainder of Sava Tires d.o.o., a tire manufacturing company in Kranj, Slovenia.

The move, according to Goodyear Chairman and Chief Executive Officer Robert J. Keegan, strengthens the company's position as the second-largest tiremaker in Europe and enhances its low-cost sourcing capabilities.

"We are very pleased to complete our purchase of Sava Tires," said Keegan. "Sava Tires and its quality products are playing an important role in our success in Europe." Sava Tires exports more than 80 percent of its production. The majority of its exports go to other European countries.

In the first quarter of 2004, combined sales for Goodyear's two European- based tire businesses increased more than 20 percent over the same period last year. Combined segment operating income increased 144 percent.

After exercising its call option to purchase the remaining 20 percent of Sava Tires owned by Slovenia's Sava d.d. for approximately $52 million, Goodyear will transfer it to the company's 75 percent-owned Goodyear Dunlop Tires Europe affiliate.

In 1998, Goodyear acquired its original 60 percent stake in Sava Tires. It bought an additional 20 percent in 2002. This 80 percent had previously been transferred to Goodyear Dunlop Tires Europe.

Goodyear is the world's largest tire company. Headquartered in Akron, Ohio, the company manufactures tires, engineered rubber products and chemicals in more than 80 facilities in 28 countries. It has marketing operations in almost every country around the world. Goodyear employs 86,000 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. Additional factors that may cause actual results to differ materially from those indicated by such forward-looking statements are discussed in the company's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended Dec. 31, 2003 and Form 10-Q for the quarter ended March 31, 2004. 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.