Bridgestone/Firestone Announces Additional Production Adjustment Plan
Recall Replacement 80 Percent Complete
Additional Production Cutbacks Will Occur in Three US Plants
Company Has Replaced Over Five Million Tires Under Safety Recall Program

Nashville, Tenn. (November 17, 2000) – Bridgestone/Firestone, Inc. (BFS) today announced that effective January 21, 2001 it will reduce tire production at its LaVergne, Tenn. and Oklahoma City, Okla., plants. These actions are in response to the continuing oversupply of passenger radial (PSR), light truck radial (LTR) tires and truck and bus radial (TBR) tires. In addition, it will temporarily curtail production for two weeks at its Warren County, Tenn., plant in response to an oversupply of replacement and original equipment TBR tires.

Today’s announcement will result in the temporary layoff of approximately 700 people in Oklahoma City and nearly 400 workers in LaVergne. The temporary production curtailment at Warren County will result in a plant shut down during the weeks of January 14 and 21 and will affect approximately 900 employees. No layoffs are associated with this production curtailment.

For employees affected by these actions, the company will provide benefits consistent with the company’s policies and collective bargaining agreements with the United Steelworkers of America (USWA). Generally this means that affected employees will receive up to 80 percent of their usual wages during the temporary downtime.

"It is our hope and expectation to be able to bring back these employees during the second half of next year as we anticipate an increase in sales and we deplete our inventories," said John T. Lampe, chairman, chief executive officer and president of Bridgestone/Firestone, Inc. "We are in a situation where sales of replacement tires have declined for several reasons. Obviously concerns surrounding the recall of certain Firestone tires is a contributor to this decline in the PSR and LTR segments. However, the entire industry is experiencing a slowdown in sales of both TBR original equipment and replacement sales."

In addition to decreases in TBR, LTR and PSR sales, Bridgestone/Firestone still has a large inventory of tires that was built up in expectation of a strike earlier this year. The strike was averted when the company successfully negotiated new contracts with the USWA, which was ratified on September 21.

"We had a very strong first half of the year for tire sales and in anticipation of a strike we built up our inventory to a level to meet projected sales that have not materialized," said Lampe.

These cutbacks are in addition to the reductions the company announced last month, which curtailed production at the LaVergne and Oklahoma City plants for two two-week periods during the fourth quarter of this year and curtailed production for one two-week period at its Decatur, Ill., plant. The company also announced that it would lay off approximately 450 people at the Decatur facility for an indefinite period.

"Some people may ask why we did not take more drastic steps last month," said Lampe. "As we recently began our budget development and sales forecast processes for 2001 it became apparent our earlier production adjustments were not adequate and a more aggressive plan was needed. We will continue to monitor and evaluate our business and will react accordingly."

The company said today’s announcement will have no impact on the recall replacement program.

Commenting on the recall replacement efforts, Lampe said, "We have replaced about 80 percent of the recalled tires, which represents over five million tires. By the end of November we expect all waiting lists will have been eliminated. We urge anyone who has not yet had their recalled tires replaced to visit their local Firestone retailer. The supply of replacement tires is more than adequate to respond to customer needs. Completion of the recall and determination of the root cause of certain tire failure remains the company’s top priority.

"I am extremely pleased with the significant progress we have made in this unprecedented tire replacement effort," he added. "A rapid completion of the recall effort and understanding why some tires failed were my foremost goals in beginning to restore consumer confidence and revitalize the Firestone brand.”

The company has not yet reached a final conclusion in determining the root cause or causes of the tires that failed, but its special project team and, separately Dr. Sanjay Govindjee, an independent expert hired by the company, are working diligently to finish their analyses.

"I said last month that we would take the necessary steps to rebuild this organization and revitalize the Firestone brand. While no one ever likes to announce layoffs and production reductions, it is necessary to do so in order to ensure the financial strength and viability of this company," concluded Lampe.

About Bridgestone/Firestone, Inc.
Nashville-based Bridgestone/Firestone, Inc., is a subsidiary of Bridgestone Corporation, the world’s largest tire and rubber company. Bridgestone/Firestone manufactures and markets Bridgestone, Firestone, Dayton and house and private brand tires. The company also produces Firestone air springs, roofing materials, synthetic rubber and industrial products. The company employs approximately 35,000 people in North America. For further information, please visit our website at www.bridgestone-firestone.com.