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Goodyear Joins with Cycloid to Market Automatic Tire Inflation Systems

16 August 2000

Goodyear Joins with Cycloid to Market Automatic Tire Inflation Systems

    AKRON, Ohio - The Goodyear Tire & Rubber Company announced today that it has 
made a strategic investment in Cycloid Company of Cranberry Township, Pa., which 
produces on-board vehicle tire inflation systems.

    Under the agreement, Goodyear took a minority interest in Cycloid, which
initially developed and markets this technology for heavy-duty trucks and
trailers.  Together, the two companies will commercialize continuous tire
pressure monitoring and maintenance systems developed by Cycloid for passenger
cars, light trucks, vans and sport utility vehicles.

    "This is a significant step and further demonstrates Goodyear's commitment
to tire safety, durability and performance.  It will make it easier for
consumers to maintain proper tire pressure, which can lead to longer and more-
even tire wear and increased fuel economy," said Joseph M. Gingo, Goodyear's
senior vice president for technology and global products.

    "It also shows our continued commitment to run-flat tire systems and is
another step in our ongoing development of vehicle systems for the automotive
market," he said.  "Our 'corner' strategy is to provide the best wheel-end
solution for run-flats and conventional tires and develop integrated
components and technology for vehicle suspension systems."

    "We're pleased to be affiliated with a leader in run-flat systems," said
Grant Renier, chairman and founder of Cycloid.  "Our ACS -- air compressor
system -- is the only self-contained, continuous tire pressurization system on
the market for heavy-duty trucks.  Together with Goodyear, we are developing
systems for automobiles, light trucks and vans."

    At the heart of ACS is a self-contained, inertia compressor mounted at the
center of the wheel that uses its rotation to power the pump and maintain
constant tire air pressure.  Cycloid and Goodyear have been developing an
electronically enhanced version of the pump, which will provide wireless
communication for computing as well as information sensing and transmission
features for future automotive platforms.

    ACS is on several truck fleets and is being evaluated by several original
equipment manufacturers.

    "Cycloid will benefit from Goodyear's OEM relationships, world-wide
distribution capabilities and run-flat technology focus, including passive
pressure monitoring systems," Renier said.  "We intend that our two companies
be at the forefront of the next generation of tire-wheel products."

    Goodyear's investment includes distribution, licensing and marketing
arrangements.

    Goodyear, the world's largest tire company, has long been a leader in run-
flat tire technology.  An original equipment supplier of its EMT run-flat
tires for several years, Goodyear recently signed a joint venture technology
agreement with Michelin of France to combine its EMT and Michelin's PAX
technologies to set an industry tire and wheel standard and broaden run-flat
tire appeal and availability.

    Cycloid, formed in 1992, has earned several industry awards, including the
1999 International First Place Glen L. Beall Award from the Society of
Plastics Engineers; the 1999 Gold Award from "Product Design & Development"
magazine; and the 1998 Nifty Fifty Award from "Heavy Duty" magazine.