FINDLAY, Ohio, April 25 /PRNewswire-FirstCall/ -- As a result of thechallenging economic environment, the Company expects to report modestearnings for the quarter ended March 31, 2008. Our current estimate isconsiderably below expectations, due primarily to continued increases in rawmaterial costs globally, increased charges for product liability claimsrelated primarily to revised estimates on existing claims, and the decline inthe volume of unit shipments in North America, particularly in March.

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Recent changes in macroeconomic conditions in North America have created anew set of challenges for our Company. Consumers have reduced the number ofmiles driven in reaction to the economic slowdown, and subsequently aredelaying tire purchases. The declining dollar's impact and other factors thathave driven record-high raw material prices, specifically, in natural rubberand oil-derived materials, coupled with the use of last-in, first-out costflow assumptions for inventory accounting in North America, have allcontributed to the increased volatility in expected earnings.

Roy Armes, Chief Executive Officer, said, 'Despite these headwinds, we arewell-positioned and fully committed to our long-term strategy to build asustainable and cost competitive supply of tires, profitably grow ourbusiness, and increase our organizational capabilities. We are fortunate to bein a position to deal with this current economic environment with a strongbalance sheet, high liquidity levels and the anticipated sale of ourinvestment in Kumho Tire Company. We have the financial strength to pursuethese goals going into the second quarter, the rest of the year and beyond.

'We will increase our focus on delivering cost improvements during 2008,with the many initiatives we already have in place.