Cooper Tire Agrees to Buy 11 Percent Interest in Kumho Tire

FINDLAY, Ohio, Jan. 10, 2005 -- Cooper Tire & Rubber Company today announced that an agreement has been reached for Cooper to acquire approximately 11 percent of the common equity of Kumho Tire. The acquisition is in connection with a planned initial public offering to be listed on the Korea Stock Exchange and London Stock Exchange and is expected to close in the first quarter 2005. The agreement is subject to a number of government and regulatory approvals.

Cooper Tire, the world's eighth largest tire manufacturer, recently completed the sale of its automotive unit for $1.165 billion. Thomas A. Dattilo, Cooper's chairman, president and chief executive officer, said, "This is a wise investment for us as we begin the process of repositioning the company after the sale of Cooper-Standard Automotive. We believe it is important for Cooper to form strategic relationships with other strong players in the global tire industry to realize a good return for shareholders and continue our planned growth in products, technology and market share."

Initially, Cooper's investment in Kumho Tire will result in a positive return for shareholders, however long term, the investment will serve as a platform to explore synergies in various areas of shared interest. "Even though both Kumho Tire and Cooper will continue to operate independently, we believe we can partner in many areas for future benefit to all," concluded Dattilo.

Kumho Tire, the world's 11th largest tire manufacturer, had net sales through nine months, 2004 of $1.2 billion while Cooper's net tire sales for the same period were $1.5 billion.

Company Description

Cooper Tire & Rubber Company is a global company specializing in the design, manufacture and sales of passenger car, light truck, medium truck, motorcycle and racing tires, as well as tread rubber and related equipment for the retread industry. With headquarters in Findlay, Ohio, Cooper Tire has 39 manufacturing, sales, distribution, technical and design facilities around the world. For more information, visit Cooper Tire's web site at: http://www.coopertireandrubber.com/