Goodyear seeks $300 million loan

Jan. 27, 2004

Goodyear Tire & Rubber Co. is in the process of adding to and modifying its financing arrangements in an attempt to "enhance its near-term liquidity" and give it greater access to funds in the future.

The company's official statement discussing the new loan arrangements, follows:

The Goodyear Tire & Rubber Co. today announced that it intends to commence a syndication

being arranged by JPMorgan and Citigroup for the addition of a new $300 million term loan to its existing $1.3 billion asset-based credit facility.

The proceeds of the loan would be permitted to be used for general corporate purposes. The consummation of the transaction will be subject to certain customary conditions, including the receipt of the consent of the lenders holding a majority of the commitments under that credit facility.

In addition, Goodyear announced that it intends to commence discussions with the lenders under its senior secured credit facilities to amend those facilities to allow for future capital markets transactions. Those transactions may involve the granting of junior liens on certain of the collateral securing the company's senior secured U.S. credit facilities.

"These actions enhance our near-term liquidity and position us to access the capital markets as we gain traction in our turnaround plan during 2004," said Goodyear Chairman and Chief Executive Officer Robert J. Keegan. "I have

a high level of confidence in our strategy and in the execution of our plan as we move forward."