Goodyear Announces Planned Closing of Tyler Facility

* Part of Company's Decision to Exit Private Label Segments

AKRON, Ohio, Oct. 30 -- The Goodyear Tire & Rubber Company today announced the planned closure of its tire manufacturing facility in Tyler, Texas, as part of its previously announced strategy to exit certain segments of the private label tire business.

At the time of its June private label announcement, Goodyear said that the decision would require a corresponding reduction in North American Tire's manufacturing capacity and that plant performance, capabilities, cost savings opportunity and the focus on serving NAT customers would dictate capacity reduction.

"We must take the steps necessary to reduce our costs and improve our competitive position," said Jon Rich, president, North American Tire. "While this is an extremely difficult decision for everyone involved, it was required to help turn around our North American business."

Rich said the timing of the action would be coordinated to minimize the impact on Goodyear's customers.

Goodyear previously announced to investors an aggressive strategy to reduce costs by more than $1 billion by 2008, including reduction in high-cost tire manufacturing capacity. The Tyler plant principally produces small diameter passenger tires, a segment that has been under considerable pressure from low cost imports.

The action is expected to eliminate about 1,100 positions, create annual savings of approximately $50 million after tax, and result in a restructuring charge of between $155 million and $165 million after tax. The cash portion of these charges is estimated to be between $40 million and $50 million.

Opened in 1962, the plant has produced approximately 25,000 passenger and light truck tires per day.

Goodyear is the world's largest tire company. Headquartered in Akron, Ohio, the company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world. Goodyear employs about 80,000 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. There are a variety of factors, many of which are beyond the company's control, which affect its operations, performance, business strategy and results and could cause its actual results and experience to differ materially from the expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to, the company's ability to realize anticipated savings and operational benefits from its cost reduction initiatives, including those related to the closing of the Tyler facility; actions and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; potential adverse consequences of litigation involving the company; increases in the company's pension plan funding obligations; the duration of the strike by the United Steelworkers (the "USW"); the outcome of the company's collective bargaining negotiations with the USW; as well as the effects of more general factors such as changes in general market or economic conditions or in legislation, regulation or public policy. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. 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.

FCMN Contact: barb_gould@goodyear.com