Bridgestone Corporation Announces 2002 First-Half Results
Bridgestone/Firestone Shows Strength in Americas Markets

NASHVILLE, Tenn. (August 9, 2002) – Boosted by a strong turnaround in its U.S. subsidiary Bridgestone/Firestone Americas Holding, Inc. (BFAH), Tokyo-based Bridgestone Corporation today announced its consolidated financial results for the six month period ending June 30, 2002. The parent company reported consolidated net sales of $9.15 billion and net income of $205 million.

While BFAH sales were up slightly over the same period last year, the company reported a dramatic increase in profitability. BFAH operating income totaled $54 million compared with an operating loss of $75 million for the first half of last year. Net income improved by $483 million over the prior year, resulting in a first half 2002 loss of $14 million. According to BFAH, the results are clear evidence that the company is well on the road to financial recovery and is tracking ahead of its plan to make a net profit for the full year.

“Although the company’s performance is not yet where we ultimately want it to be, the numbers clearly show that we’ve stabilized the business and our comeback is well ahead of schedule,” said Mike Gorey, Controller and Vice-President of BFAH.

“We’ve been able to improve sales while cutting costs and improving efficiency,” continued Gorey. “A lot of the credit goes to the hard work of our 51-thousand employees and our loyal stores and dealers across the Americas.”

Several factors were cited as contributing to the better than expected results. The company’s improvement in operating profitability reflected the success of restructuring measures that have led to increased efficiency and lower costs. In general, Bridgestone/Firestone is operating its tire plants at about 100% capacity. The result of the combination of positive factors is a 7% increase in gross profit margins over the same period last year.

In addition to the positive effects of its restructuring efforts, the company reported increasing strength in unit sales of truck and bus tires. Unit sales of passenger and light truck tires grew solidly, led by significant growth in sales in the replacement market of Bridgestone-brand tires, a stabilized market for the Firestone-brand tires, and the launch of several new high profile, popular tire lines. The robust growth in the replacement market offset a unit sales decline in original equipment tires.

Looking to the full year 2002, BFAH has forecasted net sales of $7.6 billion, operating profit of $190 million and net income of $50 million. The positive 2002 net income forecast contrasts sharply with the company’s $1.67 billion loss for the year 2001.

Bridgestone Corporation, the parent company of BFAH, announced a net sales increase of 6% for the first half of 2002, to $9.15 billion and an increase in ordinary income of 78% over the same period last year, to $466 million primarily because of improved profitability at BFAH. Net income totaled $205 million compared with a net loss in the same period of the previous year, which resulted from special charges in the Americas.

Nashville-based Bridgestone Americas Holding, Inc. is the U.S. subsidiary of Bridgestone Corporation, the world’s largest tire and rubber company. BFAH, through its subsidiaries, develops, manufactures and markets a wide range of Bridgestone, Firestone, Dayton and associate and private brand tires to address the needs of a broad range of customers, including consumers, automotive and commercial vehicle original equipment manufacturers and those in the agricultural, forestry and mining industries. The companies also produce Firestone air springs, roofing materials, synthetic rubber and industrial fibers and textiles and operate the world’s largest chain of automotive tire and services centers.