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Goodyear Increases Stake in South African Subsidiary

2 March 1998

Goodyear Increases Stake in South African Subsidiary

    JOHANNESBURG, South Africa, March 2 -- Goodyear announced
today it has purchased the remaining 40 percent interest in its Contred tire
and engineered products subsidiary in South Africa from Anglovaal Industries
Ltd., a South African industrial group.
    The 291.2 million South African Rand (approximately $59 million) purchase
is effective March 2.  In November 1996, Goodyear bought a 60 percent interest
in Contred for 568 million South African Rand (approximately $121 million)
including loans assumed.
    "Our operations in South Africa provide an outstanding opportunity as the
country continues its transition into a competitive, rapidly growing economy,"
said Samir G. Gibara, Goodyear chairman, chief executive officer and
president.
    In announcing the purchase, Gibara stated that Goodyear's long-range
strategy for earnings growth includes increasing the company's interest in
profitable ventures through the utilization of proceeds derived from the
redeployment of assets such as its latex operation in Calhoun, Ga.
    "Goodyear's presence in South Africa clearly fits with the company's
strategy to grow our business, provide exports to sub-Saharan and other
African countries, and develop new state-of-the-art products, especially for
applications in the many mining operations on the continent."
    The subsidiary includes a tire factory and an engineered rubber products
factory in Uitenhage, Eastern Cape Province; a major chain of 195 retail
stores; and the nation's largest retreading operation with 41 plants.
Goodyear is South Africa's largest manufacturer of heavy-duty conveyor belts
and power transmission products.
    Goodyear employs more than 95,000 throughout the world, and its 1997 sales
exceeded $13 billion.

SOURCE  The Goodyear Tire & Rubber Company