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New York Listed China Tire Files Suit Against Goodyear

28 December 1999

New York Listed China Tire Files Suit Against Goodyear; Allegations Include Violations of Foreign Corrupt Practices Act

    CLEVELAND, Dec. 28 -- Announcement was made today by China
Tire Holding Ltd. of a lawsuit brought by the Company against
Goodyear Tire & Rubber Co. .  The suit, which was filed in the
United States District Court for the Northern District of Ohio, Eastern
Division, alleges deceptive trade practices, trade libel and violations of
the Foreign Corrupt Practices Act.
    "We are confident that once we have presented our evidence, it will be
apparent that Goodyear improperly interfered in our contractual relationship
with a strategically-located Chinese tire factory.  In so doing, Goodyear
caused substantial harm to China Tire and its shareholders," stated Peter
McNulty, Counsel to China Tire.

    Among the allegations:

    * Goodyear unlawfully persuaded a state-owned tire factory to abandon a
      binding contract it had with China Tire to produce radial tires for
      distribution in China and abroad.
    * In Goodyear's attempt to persuade the factory to cut ties with China
      Tire, Goodyear officials made disparaging and false statements about
      China Tire executives to the factory's leadership.
    * Goodyear gave jewelry, clothes, travel, employment contracts, and other
      favors to factory officials and government regulators in an attempt to
      persuade these individuals to endorse Goodyear's illicit business
      dealings.
    * These actions by Goodyear violated Civil RICO statutes, the Foreign
      Corrupt Practices Act, Trade Libel laws and Ohio's Deceptive Trade
      Practices Act.

    China Tire seeks $3.5 billion in actual and punitive damages against
Goodyear.  The suit alleges that the agents, employees, officers and directors
of Goodyear who were directly involved in one or more of the above violations
include: Sam Gibara, President and CEO of Goodyear; Clarke Sprang, Vice
President of Business Development; Jonathan Dean, an attorney for Goodyear's
General Counsel; William Ford, a Venture Manager for Goodyear; John Ross,
Corporate General Counsel; Jerry Liang, a Taiwan citizen who was President,
Goodyear Taiwan and later became President, Goodyear China.
    China Tire, headquartered in Hong Kong, manufactures radial tires for
China and export.  It has been publicly traded on the New York Stock Exchange
since 1993.