October 27, 2008
Bridgestone Corporation
Toyo Tire & Rubber Co., Ltd.

Future Initiatives of the Business Alliance
between Bridgestone Corporation and Toyo Tire & Rubber Co., Ltd.
Bridgestone Corporation (hereinafter referred to as “Bridgestone”) and Toyo Tire& Rubber Co., Ltd. (hereinafter referred to as “Toyo”), upon conclusion of a basic
agreement regarding a business and capital alliance on May 16, 2008,
organized joint project teams for respective sectors and held discussions in theareas outlined below aiming to create increased efficiencies and generatesynergistic effects through the alliance. The following future initiatives of thebusiness alliance have been agreed by both companies.
1. Objective of Business and Capital Alliance (Excerpt from announcement onMay 16, 2008)
In recent years, the tire and the rubber industry has been confronted with
unprecedented changes in the business environment, such as structuralchanges in demand due to segmentation of the market into high performance
products and general-purpose products, changes in the structure of competition
due to the impact of low-priced products from low-cost manufacturers, andchanges in earnings due to the steep rise in raw material costs worldwide. With
this environment in mind, and through effective use of the strengths andbusiness resources of Bridgestone and Toyo, this alliance is expected to create
a synergy that will bring additional corporate value for both Bridgestone andToyo.
2. Future Initiatives of the Business Alliance(1) Tire Production Technology Developmenta. Mutually license technology for innovative production systems•Seek to further enhance the innovative production systems of bothcompanies through advancing ribbon technology and enhancing small-lot
production technology*Innovative production systems = Bridgestone’s BIRD (Bridgestone Innovative &Rational Development) and Toyo’s A.T.O.M. (Advanced Tire Operation Module)b. Mutually license technology for existing production methods

•Conduct joint development programs in order to overcome common
challenges, such as those encountered in equipment development,
increasing design efficiency, and optimizing other aspects of production.

•Mutually license unique technologies such as high-precision component
preparation technology, small-lot production technology, and overseas
plant construction and operating know-how*In terms of medium- to long-term initiatives, the companies will work on the joint
development of new production methods based on the technology incorporated
in the innovative production systems of each company.
(2) Procurement of Raw Materials, Other Materials and Equipment
a. Utilize internal production•

Mutually supply materials produced in-house and equipment for generaluse• Make the best use of engineering subsidiaries of the companies
i. Conduct external procurement•Investigate the possibility of joint procurement of components forequipment
ii. Rationalize logistics for procurement*In terms of medium- to long-term initiatives, the companies aim to conduct joint
procurement of raw materials and integrate raw material specifications to thegreatest extent possible.
(3) Cross-Production between Bridgestone and Toyoa. Utilize production capabilities•Conduct the cross-production of radial tires for passenger cars at
Bridgestone’s Latin American plants and Toyo’s U.S. plants
b. Improve distribution cost by cross-production at plants closer to relevantmarkets around the worldc. Increase flexibility through the creation of complementary production systems*In terms of medium- to long-term initiatives, the companies will implement thecross-production of radial tires for trucks and buses, integrate manufacturing ofcertain products such as bias tires and supplementary products, and aim forcross-production at plants built in the future.
(4) Logistics
a. Increase efficiency of domestic distribution•

Use round-trip transportation and work to reduce carbon dioxide

emissions by increasing transport efficiency in addition to reaping
economic benefits
b. Mutually utilize distribution bases (warehouses)
c. Make full use of logistics subsidiaries
d. Mutually utilize best practices related to resources and work know-how*In terms of medium- to long-term initiatives, the companies will employ a joint
transport strategy in Japan and overseas, and implement a policy of integrationof warehousing sites. Discussions will also be held regarding the construction of
new large-scale joint warehouses.
(5) Business Other than Tires
a. Urethane Business• Investigate the possibility of collaboration in development, production, etc.
b. Antivibration Rubber Business•Conduct joint research into eco-friendly technology and production
technology, and investigate the possibility of joint procurement ofcomponents*In terms of medium to long-term initiatives, the companies will investigate thepossibility of collaboration in other businesses.
3. Capital AllianceToyo and Bridgestone had earlier agreed to establish a capital alliance in orderto create a stable relationship based on mutual trust. Payments between thecompanies were completed on October 16, 2008 in line with initial plans.
For the capital alliance, Toyo issued new ordinary share of 20 million stocks(8.72% of the issued stocks including this issue) and allocated the shares toBridgestone Corporation. Bridgestone allocated 3.9 million of its treasury stock(0.48% of all issued stocks) to Toyo.
4. Looking Ahead
The aforementioned initiatives will be executed in respective sectors after thedetails of the initiatives are determined by the project teams.
Any noteworthy items concerning further developments in discussions orimplementation of initiatives will be announced as they arise.