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Goodyear Sells All American Pipeline

23 March 1998

Goodyear Sells All American Pipeline

    AKRON, Ohio, March 23 -- The Goodyear Tire & Rubber Company
announced today that a definitive stock purchase agreement for the
sale of All American Pipeline Company, Celeron Gathering Corporation and
Celeron Trading & Transportation Company, in an all-cash transaction, has been
entered into with a subsidiary of Plains Resources Inc.  Plains is an energy
company based in Houston.
    Aggregate cash proceeds will total approximately $420 million.
    Samir Gibara, chairman, chief executive officer and president of Goodyear,
said that the proceeds from the sale will substantially improve Goodyear's
"financial flexibility to implement its strategic plans for sales growth and
earnings improvement while focusing on its core competencies."
    Gibara stated that the company would record approximately a $35 million
after-tax loss on the transaction, partially offsetting a $38 million gain
realized during the first quarter on the sale of its carpet latex business in
Calhoun, Ga.
    Citing its strategy to divest itself of non-core businesses and redeploy
those assets, Gibara said the proceeds from the carpet latex transaction had
funded the purchase in early March of the minority interest in the company's
South Africa affiliate.  The gain on the sale of the latex business also
enabled the company to execute the final phase of its divestiture strategy,
the All American Pipeline, on an essentially earnings neutral basis.
    The pipeline first became profitable in 1994.  In 1997, profits declined
due to lower production of outer continental shelf oil and reduced volumes of
crude oil transported to west Texas.
    The transaction allows Goodyear to exit completely the oil transportation
business.  The agreement is expected to be completed in the third quarter
after regulatory approvals have been secured.
    The All American Pipeline Company owns and operates the All American
Pipeline, a 1,233-mile pipeline that carries crude oil from the California
coast to refineries in California and, via other connections, to refineries in
Texas and the mid-west.
    Celeron Gathering operates a 43-mile crude oil gathering system in
California's San Joaquin Valley.  Celeron Trading & Transportation engages in
various crude oil purchasing and selling activities.
    Celeron and the AAPL have their headquarters in Bakersfield, Calif.  A
computerized control and monitoring center also is located there.

SOURCE  The Goodyear Tire & Rubber Company