Falken announces price increases

May 20, 2004

Falken Tire Corp. will raise tire prices effective June 1. Increases on its high and ultra-high performance tires will range from 3% to 10%.

In addition, Falken radial light truck and truck tire prices will rise 3%.

"We have had to adjust our prices due to the realities of today's market," says Richard Smallwood, vice president of sales an marketing.

"Raw materials, energy, fuel and transportation costs have all increased dramatically. We had no choice but to pass the increase along."

A number of other tiremakers also will raise prices on June 1:

* Bridgestone/Firestone North American Tire LLC (BFNT) will raise replacement and OE consumer tire prices up to 5% "across the board" in the U.S. and Canada. The price of some sizes of off-the-road tires may be increased by up to 8%.

* Pirelli Tire North America is raising prices an average of 3% across the company's branded and manufactured passenger and light truck tire lines.

* Continental Tire North America Inc. will hike prices on its Continental, General, Semperit and private brand consumer tires from 3% to 5%. It also will raise prices on its medium truck and OTR tires from 2% to 5%.

* Cooper Tire & Rubber Co. will raise prices on its major, associate and private label tires by up to 5%, depending on product line.

* Toyo Tire (U.S.A.) Corp. will increase prices on its consumer and commercial tires up to 4%.

* Yokohama Tire Corp. will boost consumer tire prices by 2% to 5%, while increasing its commercial tire prices by 2% to 4%. Yokohama's OTR tire prices will jump 2% to 3%.

Michelin North America Inc. will boost prices on its MAST (Michelin Americas Small Tires) and private brand consumer tire offerings by an average of 3% on July 5. Michelin will increase prices on its replacement and original equipment truck tires (Aug. 1) and earthmover tires (July 1) by 3% to 8% depending on sizes.

Hankook Tire America Corp. also will increase prices on July 1. Prices on its full line of passenger, high performance, light truck and medium truck tires will be raised by 3%.

Goodyear implemented price increases of at least 2% on all its tire lines -- including commercial tires -- on May 1.