July 14, 2006

Negotiations Update from NAT President Jon Rich:

As you all likely know, the USW has identified Michelin/BF Goodrich/Uniroyal as the target for the current master contract bargaining. This means that the USW will attempt to reach an agreement with Michelin that will serve as the template, or "pattern agreement" for contracts with other tire makers. (Goodyear was the target during the last negotiation, in 2003.)

Still, this does not mean that our negotiations go on hiatus. We continue to meet with the USW in Cincinnati to make progress on a new contract for Goodyear. Each tire maker has issues and concerns that are unique to itself and a "template" agreement should not be mistaken as a "one-size-fits-all" solution.

As we have said from the beginning, our goal is to reach an agreement with the USW that helps us win with customers. To win with customers we must focus on reality:

• We must have a significantly lower cost structure in North America.
• We must have the highest productivity in the world.
• We can no longer survive with future legacy liabilities for pensions and health care that are uncompetitive and unpredictable.

Both sides must make the difficult choices necessary for Goodyear to succeed in North America and continue to provide jobs and benefits to thousands. Goodyear is deeply committed to the collective bargaining process and arriving at a resolution of the issues that is fair to all stakeholders.