Goodyear Concludes Convertible Note Exchange

Goodyear Tire & Rubber announced on December 6 the results of a previously announced offer to exchange its outstanding four per cent Convertible Senior Notes due June 15, 2034 for a cash payment and shares of its common stock. Note holders tendered approximately US$346 million aggregate principal amount of convertible notes in exchange for approximately 28.7 million shares of common stock plus a total cash payment of approximately $23 million. Approximately 99 per cent of the principal amount of the outstanding convertible notes was tendered in the exchange offer. A total of approximately $4 million principal amount of convertible notes remains outstanding.

“This successful exchange offer eliminates approximately $346 million in debt from our balance sheet and reduces our annual interest expense by approximately $14 million,” said W. Mark Schmitz, executive vice president and chief financial officer. “This exchange is another step in our debt reduction process and helps us move closer to our next stage metrics.”

The exchange offer, which expired at 5pm (New York City time) on December 5, 2007, allowed note holders to receive the same number of shares of Goodyear’s common stock as they would have received upon conversion of the convertible notes in accordance with their current terms, plus a cash payment, including accrued and unpaid interest.