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China Tire Holdings Ltd. Pursues Its Legal Rights Against Goodyear

13 August 1999

China Tire Holdings Limited Remains Committed To Pursuing Its Legal Rights Against Goodyear

    HONG KONG, Aug. 12 -- The board (the "Board") of China Tire
Holdings Limited ("China Tire" or the "Company") announces that in
the tort civil action filed by the Company and its subsidiary, Orion Tire
Corporation ("Orion") against Goodyear Tire & Rubber Company ("Goodyear")
at the U.S. District Court for the Central District of California,
Judge David O. Carter has granted Goodyear's (the defendant's) motion for
Summary Judgement to dismiss Orion's causes of action.  As a result, although
the Judge has made no determination on the merits of the case for China Tire,
China Tire's action could not proceed in California for lack of jurisdiciton.
The Company has the options to appeal the entire decision to the Ninth Circuit
Court of Appeals and/or to file a new complaint in Akron, Ohio, the
headquarter of Goodyear.  The Company remains committed to pursuing its legal
rights against Goodyear.