• Full-year sales top $20 billion for first time
• Record sales, segment operating income for quarter in 3 international tire businesses
• Strike reduced net income by $367 million
• Fourth quarter rationalization charges of $184 million, principally due to plant closures
• Keegan: Well positioned for earnings growth, cash flow acceleration

AKRON, Ohio, February 16, 2007 – The Goodyear Tire & Rubber Company today reported record sales for the fourth quarter and the full year of 2006.

Goodyear’s fourth quarter 2006 sales were nearly $5 billion, a 2 percent increase compared with the 2005 quarter excluding the impact of businesses divested in 2005.

Strong sales came despite an 8 percent decline in tire volume, principally due to a 12-week strike in North America by the United Steelworkers and the company’s action to exit certain segments of the private label tire business. Sales benefited from improved pricing and product mix in the company’s international tire businesses, all of which achieved sales records.

The company estimates that the strike at 16 of the company’s North American Tire and Engineered Products facilities reduced fourth quarter 2006 sales by $363 million and tire volume by 2.8 million units.

For the 2006 fourth quarter, Goodyear reported a net loss of $358 million ($2.02 per share). This includes the strike impact of an estimated $367 million ($2.07 per share); $184 million ($1.03 per share) in after-tax charges for rationalization, including accelerated depreciation and asset write-offs principally related to plant closures; and a one-time gain of $153 million (86 cents per share) related to the favorable resolution of a tax contingency.

The company posted a net loss of $51 million (29 cents per share) during the 2005 fourth quarter, which included an after-tax loss on asset sales of $78 million (44 cents per share).

“We made outstanding progress in several key focus areas in 2006, in spite of the challenges from the strike, high raw material costs and difficult market dynamics. This allowed us to continue to grow our top line and deliver record results in several of our businesses while creating strong business platforms to carry Goodyear’s profitable growth into the future,” said Robert J. Keegan, chairman and chief executive officer.

“Looking beyond the impact of the strike and our restructuring actions one can see the true performance of our business and the significant strength in the underlying results,” he said. “A series of courageous decisions and successful execution against our plans in 2006 position our company well for earnings growth now, and for cash flow acceleration in 2008 and beyond.”

Improvements in pricing and product mix of approximately $210 million, driven by the company’s strategy to focus on innovative branded products supported by strong marketing efforts, substantially offset raw material cost increases of an estimated $220 million compared to the prior-year quarter. Revenue per tire increased 5 percent compared to the fourth quarter of 2005.

Tire unit volume was 51.2 million units in the quarter, compared to 55.7 million units in the 2005 period. This decrease was largely a result of the company’s action to exit certain segments of the private label tire business and the USW strike.

Business Segments

The fourth quarter’s total segment operating loss was $105 million in 2006, including a $361 million impact of the strike. This compares to segment operating income of $226 million in the 2005 period.

The European Union; Eastern Europe, Middle East and Africa; and Asia Pacific tire businesses each achieved fourth quarter segment operating income records.

See the note at the end of this release for further explanation and a reconciliation table.

North American Tire’s fourth quarter 2006 sales were $2.1 billion, compared to $2.3 billion in the 2005 quarter. The company estimates the USW strike reduced volume by 2.8 million units and sales by $318 million.

In addition to the strike impact, sales reflect the company’s action to exit certain segments of the private label tire market and continued weakness in both the replacement and original equipment markets.

The fourth quarter segment operating loss was $301 million, compared to income of $43 million in the 2005 period. The company estimates the strike reduced 2006 segment operating income by $313 million. Pricing and product mix improvements of $88 million partially offset raw material costs increases of approximately $93 million compared to the prior year.

Divestitures in 2005 reduced fourth quarter 2006 sales by approximately $54 million and tire volume by 300,000 units but had no material impact on segment operating income.

European Union Tire sales reached a record for any quarter, increasing 15 percent due to higher volumes of winter tires as well as commercial truck tires.

Fourth quarter segment operating income increased 67 percent to a record $75 million compared to 2005 primarily due to improved pricing and product mix and cost reduction initiatives. The company estimates higher raw material costs had a $63 million impact on segment operating income during the quarter, which was partially offset by $49 million in pricing and mix improvements.

Eastern Europe, Middle East and Africa Tire’s sales reflected a fourth-quarter record and a 13 percent increase over the 2005 period primarily due to strong sales in Russia, Poland and Turkey.

Segment operating income set a fourth quarter record and increased 32 percent due to improved pricing and product mix and continued leveraging of the business’ low-cost manufacturing base. Pricing and product mix improvements of $28 million offset higher raw material costs of approximately $17 million.

Latin American Tire’s sales reflected a record for any quarter and increased 13 percent compared to 2005, driven by higher volume in original equipment markets as well as improvements in pricing and product mix.

Segment operating income increased 19 percent, reflecting the volume increases, currency translation and cost reduction initiatives. The company estimates pricing and mix improvements of $12 million partially offset raw material costs increases of $23 million compared to the 2005 period.

Asia Pacific Tire’s sales were a record for any quarter, increasing 10 percent over 2005, driven by growth in China and India as well as improvements in pricing and product mix.

Segment operating income reflected a fourth quarter record and was 24 percent higher than 2005 due to pricing and product mix improvements of $24 million as well as cost reduction activities. The company estimates raw material costs increased $16 million compared to the 2005 period.

Engineered Products’ sales decreased 14 percent compared to 2005 due largely to the USW strike. The company estimates the strike reduced sales by $45 million.

Segment operating income reflects higher selling prices, strong industrial products business and higher international sales that were offset by approximately $48 million in impact from the strike, as well as anticipated reductions for military products and weak markets for original equipment automotive products.

Full-Year Results

Goodyear’s net sales for 2006 were a record $20.3 billion, a 3 percent increase over 2005 despite a 5 percent decline in tire unit volume. Excluding the impact of businesses divested during 2005, sales increased 4 percent.

The 2006 net loss was $330 million ($1.86 per share), compared to net income of $228 million ($1.16 per share), in 2005. Segment operating income was $786 million, including the strike impact, compared to $1.16 billion in 2005.

The company estimates that the strike reduced 2006 sales by $363 million, tire volume by 2.8 million units and net income by $367 million.

In addition to the strike, full-year 2006 results include the impact of continued weak markets in North America, the company’s action to exit certain segments of the private label tire business and divestitures in 2005.

Divestitures in 2005 reduced full-year 2006 sales by approximately $265 million, tire volume by 1.1 million units and segment operating income by $34 million.

Improvements in pricing and product mix of approximately $784 million partially offset higher raw material costs, which increased 17 percent, or approximately $869 million, compared to 2005. Revenue per tire increased 7 percent compared to 2005.

During 2006, the company made approximately $680 million in contributions to its pension plans. These contributions led to an approximately $600 million reduction in the company’s unfunded pension liability.

Conference Call

Goodyear will hold an investor conference call at 9 a.m. today. Prior to the commencement of the call, Goodyear will post the financial and other statistical information that will be presented on its investor relations Web site: investor.goodyear.com.

Participating in the conference call with Keegan will be Richard J. Kramer, executive vice president and chief financial officer, and Darren R. Wells, senior vice president, business development and treasurer.

Shareholders, members of the media, and other interested persons may access the conference call on the Web site or via telephone by calling (706) 634-5954 before 8:55 a.m. A taped replay of the call will be available at 3 p.m. by calling (706) 634-4556. The replay will also remain available on the Web site.

Goodyear is one of the world’s largest tire companies. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries around the world. Goodyear employs more than 75,000 people worldwide.

Certain information contained in this press release may constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements. There are a variety of additional factors, many of which are beyond the company’s control, which affect its operations, performance, business strategy and results and could cause its actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: actions and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; the company’s ability to realize anticipated savings and operational benefits from its cost reduction initiatives, including those expected to be achieved under the company’s master labor contract with the United Steelworkers (USW) and those related to the closure of certain of the company’s manufacturing facilities; whether or not the various contingencies and requirements are met for the establishment of the Voluntary Employee Beneficiary Association (VEBA) to be established to provide healthcare benefits for current and future USW retirees; potential adverse consequences of litigation involving the company; pension plan funding obligations as well as the effects of more general factors such as changes in general market or economic conditions or in legislation, regulation or public policy. Additional factors are discussed in the company’s filings with the Securities and Exchange Commission, including the company’s annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.

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