Goodyear prices common stock offering

May 17, 2007

Goodyear Tire & Rubber Co. has priced its public offering of 22.7 million shares of common stock at $33 per share. (See "Goodyear announces plans to offer shares of common stock," May 10, 2007.)

In addition, Goodyear has granted the underwriters a 30-day option to purchase up to an additional 3.4 million shares of its common stock to cover any over-allotments. The offering is expected to close on Tuesday, May 22, 2007.

Net proceeds from this offering, after deducting underwriting discounts and commissions, are expected to be approximately $725 million, or $834 million if the underwriters exercise their over-allotment option in full.

Goodyear intends to use the net proceeds from the offering to redeem the following:

* approximately $175 million in principal amount of its outstanding 8.625% senior notes due in 2011;

* approximately $140 million in principal amount of its outstanding 9.00% senior notes due in 2015.

The company says it expects to use the remaining net proceeds of the offering "for general corporate purposes," which may include, among other things, investments in growth initiatives within the company's core tire businesses and the repayment of additional debt.

Deutsche Bank Securities, Citi and Goldman, Sachs & Co. served as joint book-running managers of the offering.