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Goodyear to Form Two Joint Ventures with Sava

19 May 1997

Goodyear to Form Two Joint Ventures with Sava

    AKRON, Ohio, May 19 -- The Goodyear Tire & Rubber Company has
agreed with the Sava Group in Kranj, Slovenia, to take a 60 percent interest
in Sava's tire business and a 75 percent interest in its engineered products
business.  A "letter of intent" to form two separate joint ventures was signed
on Friday, May 16.
    The Sava Group is comprised of several companies making a wide range of
products and employs approximately 3,600.
    Sava reported total sales revenue of approximately $245 million in 1996,
$177 million of which was mainly for car and commercial truck tires.
    The engineered products joint venture will include transmission belts, air
springs and hose.
    Goodyear's Chairman Sam Gibara pointed out that the proposed joint
ventures with Sava will be the company's second major move in Eastern Europe
during the past 18 months.  Early in 1996, Goodyear acquired a majority stake
in the operations of a Polish tire company, TC Debica.
    The joint venture involving Sava's engineered products business is
strategic to Goodyear's growth by providing a European manufacturing based
operation.  Currently, Goodyear's existing customers are supplied with
products from other regions.
    Gibara said:  "These developments fit perfectly with our goal to ensure
fast and profitable growth in all our core businesses, whether in tires,
engineered products or chemicals.
    "It is essential that we hold a No. 1 or No. 2 position in each of the
industries and in each market in which we participate.  These latest moves --
coming on the heels of our $121 million purchase of 60 percent of Contred's
South African business -- show that Goodyear is well-poised to meet its goal
of becoming the best tire and rubber company in the world by the end of the
year 2000."
    The joint venture agreements -- which are due to be signed by mid-summer
-- are subject to final approval by both Goodyear's Board of Directors and
Sava's shareholders.
    The purchase price will be announced at that time.

SOURCE  The Goodyear Tire & Rubber Company