---

Goodyear Announces Plans to Complete Kelly Integration

5 October 1998

Goodyear Announces Plans to Complete Kelly Integration; Cumberland Offices to Close

    AKRON, Ohio, Oct. 5 -- The Goodyear Tire & Rubber Company
today announced plans to complete the total integration of its Goodyear North
America and Kelly-Springfield operations.
    Included in the announced plans is the transfer of the sales, marketing
and financial operations from Kelly's Cumberland, Md., offices to Akron, which
are scheduled to be completed by June 30, 1999, except for certain financial
systems which will be completed by September 30, 1999.  These operations are
merged to take advantage of efficiencies between the two organizations to
better serve an evolving market.
    The plan also includes transfer of the Kelly tech center operations, which
will be accomplished on a separate timetable.  This transfer is a logical
extension of the overall integration process.  This total consolidation phase
will ultimately lead to the closure of the general offices in Cumberland.
    This market-driven move will drive growth by providing a complete brand
portfolio of products under the umbrella of the corporation and also will
result in significant cost efficiencies, according to Gene Culler, executive
vice president of Goodyear's North American Tire division.
    "The integration will now give Goodyear the flexibility to determine based
on need which elements of the Goodyear, Kelly and associate brand portfolio
make good business sense and best serve the various market segments across
North America," Culler said.  "But equally important, it brings together two
separate operations, resulting in efficiencies that will benefit those
retailers who deal with Goodyear.
    "Depending on the needs and requirements of the customer, there will be an
opportunity for retailers to access unique (Goodyear or Kelly) or common
(Goodyear and Kelly) offerings based on meeting special criteria," Culler
added.
    Completion of this three year process of integration which began in 1996
includes not only the market-visible aspects of combining the power of the
Goodyear and Kelly brands for its retailers, Culler said, but also combining
the best practices and systems of information technology, tire technology and
overall administration.
    That combination will ultimately benefit both the customer and Goodyear,
Culler said.
    "The new structure is a win-win for both Goodyear and Kelly as it
internally capitalizes on common and shared resources while externally
reflecting the needs of the customers and the opportunities in the
marketplace," Culler said.
    Specifics on the integration plans and how it will impact individuals will
be communicated to the workforce over the next several weeks, according to
Culler.
    Goodyear is offering relocation to individuals whose skills, knowledge and
jobs are considered essential in the basic restructuring and integration
efforts, Culler added.  Others, who will not be asked to relocate or those who
decline relocation, will be offered separation packages and outplacement
services.  All associates also will be provided with the option of counseling
assistance.
    "The necessity of this business change is no reflection on either the job
of the individuals or the cooperation of local and state governments," Culler
said.  "It is a function of an evolutionary marketplace and the competitive
pressures that are driving us to be even more responsive and competitive in
order to remain and extend the leadership position Goodyear holds in the North
American marketplace.