Special letter from Jon Rich

To All Goodyear NAT Associates:

This morning, we announced our decision to withdraw from certain segments of the wholesale private label tire business in North America. As you know, our strategy is to focus selectively on the more profitable areas of our business. This decision is consistent with that strategy.

A limited number of customers, primarily wholesalers, will be affected. We have already spoken to those customers and have made it clear that we will help them transition to alternative Goodyear products and/or sources of supply.

We are taking this step now in order to focus our resources on branded and retail specific product lines. The action affects approximately 10 private label brands that are currently manufactured by Goodyear and are sold by a small number of wholesale customers to tire retailers.

In 2005, this segment of the private label business represented approximately $300 million in sales and approximately 8 million units manufactured in five North American plants. This decision also will require a reduction in Goodyear’s tire manufacturing capacity in North America. Working capital related to these product lines will similarly be reduced. Additionally, Goodyear will identify and address additional related cost reduction opportunities.

As you know, we are currently in negotiations with the United Steelworkers on a new labor contract. We have approached our bargaining with the USW with a focus on reality – the way our world is, and not as it used to be, or as we wish it would be. Global competition – already tougher than it has ever been – will only get tougher. Facing reality is what we must do every day as we follow our strategy to win in North America, whether we are talking about passenger, commercial or off-highway tires, OE or replacement, branded or private label products.

Sometimes facing reality is hard; choices are often difficult. But every choice we make must pass one test: does it help us win? If the answer is yes, then the choices we make – while still difficult – will be the right ones.