Bridgestone, Toyo Tire to Form Alliance

Tokyo, May 16, 2008; Bridgestone Corp. and Toyo Tire & Rubber Co. said Friday they have reached basic agreement to form an alliance in a move to survive competition from rivals in emerging economies.

Bridgestone will buy 20 million new shares in Toyo Tire for an 8.72 pct stake, becoming the third largest shareholder in Toyo Tire.

Toyo Tire will buy 3.9 million outstanding Bridgestone shares for a 0.48 pct stake.

The companies are considering cooperation in developing manufacturing technologies, streamlining material procurement and consigning production to each other.