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Goodyear Completes Sumitomo Rubber Alliance

2 September 1999

Goodyear Completes Sumitomo Rubber Alliance, Regains Global Tire Industry Leadership

    AKRON, Ohio, Sept. 1 -- The Goodyear Tire & Rubber Company
today became the world's No. 1 tiremaker, regaining the position it held for
more than seven decades.
    The company announced the completion of its far-reaching global alliance
with Japan's Sumitomo Rubber Industries Ltd.  With this, Goodyear now controls
SRI's Dunlop tire operations in North America and Europe.
    In addition, Goodyear will become SRI's second-largest shareholder with a
10 percent interest in the company.  Goodyear will have a seat on SRI's board
of directors beginning in March 2001.
    Immediately accretive to earnings, the transaction is expected to increase
Goodyear's consolidated annual sales by $2.5 billion.  In addition,
anticipated synergies and cost improvements will add an estimated $300 million
to $360 million to the joint ventures' operating profit during the next three
years.
    "While Goodyear's return to its longstanding position as the world's
largest tiremaker is important to our associates, it offers real benefits for
our customers and our shareholders," said Samir G. Gibara, chairman, president
and chief executive officer.
    "The addition of the Dunlop brand gives us a tire lineup that is unmatched
in the marketplace.  It gives us better global flexibility to serve original
equipment manufacturers and a more-competitive product portfolio for our
replacement customers.  We anticipate building on Dunlop's past achievements
and increasing sales on both continents, as well as in Japan where we have
gained an important foothold," he said.
    "The financial structure of this alliance is designed to allow us to
continue to have a strong balance sheet and maintain our financial
flexibility."
    Goodyear, already the largest tiremaker in North and South America,
advances to the No. 2 position in Europe.  With the addition of Dunlop,
Goodyear, according to industry estimates, now holds almost 22 percent of the
$70 billion global tire market.
    "One of our objectives is to be No. 1 or 2 in every market in which we
compete," said Gibara.  "I'm confident that we'll be successful in this and in
being seen as the world's best tire and rubber company by all measures."
The global alliance creates four joint venture companies:  one in North
America, one in Europe, two in Japan and two synergy-focused support ventures
in the U.S., one for global purchasing and one for sharing tire technology.
Goodyear, which made a cash payment of $936 million to SRI, has majority
ownership in all of the joint ventures except the two in Japan.
    The global leader in the tire and rubber industry, Goodyear, headquartered
in Akron, Ohio, manufactures tires, engineered rubber products and chemicals
in more than 90 facilities in 30 countries.  It has marketing operations in
almost every country around the world.  With the addition of Dunlop, Goodyear
employs more than 105,000 people worldwide.
    (NOTE:  This news release contains certain forward-looking statements
based on current expectations and assumptions that are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed by such statements.  These risks and uncertainties include price and
product competition, customer demand for the company's products, the ability
to control costs and expenses, general industry and market conditions and
general domestic and international economic conditions, including interest
rate and currency fluctuations.  The company disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.)