Goodyear Announces Closing of $680 Million Credit Facility

AKRON, Ohio, Aug. 18, 2004 -- The Goodyear Tire & Rubber Company today announced that it has closed a $680 million senior secured funded credit facility.

This facility, which matures in September 2007, refinances the company's $680 million senior secured U.S. revolving credit facility, which would have matured on April 30, 2005. The new facility is secured by the same collateral that secured the U.S. revolving credit facility.

"Improving our credit profile is a key component of the company's turnaround strategy," said Richard J. Kramer, executive vice president and chief financial officer. "This includes refinancings to extend maturities, potential asset sales and, ultimately, increased equity funding."

The new facility will be utilized by Goodyear as needed to support letters of credit or for borrowings on a revolving basis, similar to the facility it replaces. Also consistent with the facility it replaces, about $500 million of the new facility will be utilized initially to support already existing letters of credit.

The company, on July 21, announced plans to refinance the $680 million senior secured U.S. revolving credit facility with a $500 million senior secured funded credit facility. Lender demand was sufficient to increase it to $680 million. Lenders in the new facility will receive annual compensation equivalent to 4.5 percent over LIBOR.

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 about 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, including the factors 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 June 30, 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.