Kumho Tires Begins Construction of New R&D Center

State-of-the-art facility to be global hub for company's research

RANCHO CUCAMONGA, Calif., May 19 -- Kumho Tires, one of the world's leading tire companies, announced the groundbreaking of the new Kumho R&D Center in Young-In, South Korea on May 15, 2008. The 70 billion (KRW), 34,842 square meter facility is slated for completion by the end of 2009.

"Innovation is at the heart of our competitive advantage, and this state-of-the-art facility will strengthen our global research and development network and propel us toward our goal of becoming one of the world's top five tire manufacturers," said Mr. Sae-chul Oh, President of Kumho Tires. "The Kumho R&D Center will help us attract top scientists and engineers, who will develop creative products that fit our customers' needs."

The center, located less than an hour's drive from Seoul, will serve as a coordinating hub for Kumho's research activities in other centers in the United States, United Kingdom, China and Korea. The Kumho R&D Center will feature chemistry laboratories and the latest equipment for testing and analyzing tire compounds, noise and vibration.

In keeping with Kumho Tire's ongoing commitment to responsible manufacturing policies, the Kumho R&D Center will be certified by Korea's Housing & Urban Research Institute as a "Green" building. This designation is given to facilities that are built according to strict environmental impact, energy usage, nature conservation and carbon footprint guidelines.

As part of its overall strategy to bolster R&D, Kumho will double its staff of 600 research employees by 2015. The additions will help the company focus on developing eco-friendly technologies and creative products not offered by other manufacturers. Kumho has been developing tires for more than 50 years and continues to build on its knowledge base.