16, May 2008
Bridgestone Corporation
Toyo Tire & Rubber Co., Ltd.

Business and Capital Alliances
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”) announce that, today, Bridgestone
and Toyo agreed to pursue consultation in business alliances and entered into businessand capital alliance agreement.
１．Objective of Business and Capital Alliances:
In recent years, the tire and the rubber industry is confronting with unprecedentedchanges in the business environment such as structural changes in demand due tobipolarization of market into high performance products and general-purpose
products, structural changes in competition due to emerging power with low-priced
products, and structural change in earnings due to steep rise of raw material cost.
Under such environment, by effective use of strengths and business resources ofBridgestone and Toyo, these alliances are expected to create synergy-effect which
will bring additional corporate values for both Bridgestone and Toyo.
２．Business Alliances:
Actual contents of business alliances between Bridgestone and Toyo will be
discussed and decided in the project teams which will immediately be organized forrespective sectors aiming to create increased efficiencies in the business andsynergy-effect.

The project teams are expected to discuss the cooperation in theareas below and are scheduled to provide outline of the contents of businessalliances by autumn this year.

Both Bridgestone and Toyo will fully and strictly

comply with the requirements and prohibitions of the competition laws of all
jurisdictions in pursuing the establishment of business alliances between the twocompanies.
（１）Production-technology Development-To study advanced production technology including co-development of new
production methodology and machineries.
（２）Procurement of Raw Materials, Other Materials and Equipments-To study more competitive method of procurement by utilizing the supply andprocurement capacities of Toyo and Bridgestone

（３）Cross Production between Bridgestone and Toyo
-To seek for synergies in economy of scale in production, merits in distributions,and utilization of spare production capacities（４）Logistics-To seek for cooperation in logistics at global level（５）Business Other than Tires- To study possible synergies in common business areas other than tires
３．Capital Alliance:
In order for Bridgestone and Toyo to discuss and pursue business alliances understable relationship with mutual trust, the two companies decided to establish acapital alliance.
Toyo will issue new ordinary share of 20 million stocks (8.72% of the issued stocks
including this issue) and allocate all shares to Bridgestone Corporation andBridgestone will take all.

On the other hand, Bridgestone will allocate 3.9millionof its treasury stocks (0.48% of issued stocks) to Toyo Corporation and Toyo will takeall.
Note: In order to comply with the Anti-monopoly Act and other related laws of every
country, necessary reporting and consultation will be conducted to relevant
authorities.

As a result, the scheme or timing of this alliance may be changed upon

mutual consultation and an agreement between both companies.
4. Summary of Parties:(1) Trade Name

Bridgestone Corporation

Toyo Tire & Rubber Co., Ltd.

(2)Principal Business

Manufacture and sales of Tires,

Manufacture and sales of Tires,

Chemical & Industrial Products

Chemical & Industrial Products andand Automotive Parts

Automotive Parts(3)Date of Incorporation

March 1, 1931

August 1, 1945(4)Address of

10-1, Kyobashi 1-Chome,

17-18, Edobori 1-Chome, Nishi-ku,Headquarters

Chuo-ku, Tokyo, JapanOsaka, Japan(5)Representative

Shoshi Arakawa, President &Kenji Nakakura, President and CEOCEO(6) Capital Stock

126,354 million Yen

23,974 million Yen(7) Fiscal TermEnding December 31

Ending March 31(8) Number of Employees

133,752 employees (consolidated) 7,248 employees (consolidated)

(9) Principal Shareholders

Ishibashi Foundation

HSBC Fund Services Sparxand Shareholding Ratio

9.43% Asset Management Corporated
Japan Trustee Services Bank,Ltd.(Trust account)

12.92%HSBC Fund Services Sparx Asset

4.82% Management Limited-U.S. Client
The Master Trust Bank of Japan,
Ltd. (Trust account).

11.39%
Toyota Motor Corporation

4.18%
Hiroshi Ishibashi

4.56%
The Bank of Tokyo-Mitsubishi UFJ,

3.33% Ltd.
Nippon Life Insurance Company

4.49%

2.46% Japan Trustee Services Bank, Ltd.
Sumitomo Mitsui Banking(Toyobo Co., Ltd. Retirement benefit

Corporationtrust account)
2.21%

3.71%
Japan Trustee Services Bank, Ltd.

Nomura Securities Co. Ltd(Trust account)
2.09%

3.16%
Nippon Life Insurance Company

Nagasaka Corporation

3.03%
2.01% Morgan Stanley and Co. Inc.

Mizuho Corporate Bank Ltd.

2.72%

1.53% The Master Trust Bank of Japan,
Ltd. (Trust account)
Japan Trustee Services Bank,Ltd.(Trust account)

2.41%
The Yokohama Rubber Co., Ltd.

1.52%
(10) Parties’ Relationship

There are no capital and personnel relationship.
manufacturing licensing agreements.
the category of affiliated parties.

Note:

1.91%

"Capital Stock," "Number ofEmployees" and "Principal
Shareholders and Shareholding
Ratio" are as of December 31,
2007 for Bridgestone, and March31, 2008 for Toyo.

There areEach party does not fall under５．Schedule:
16 May 2008Resolution by the board of directors meeting in Bridgestoneand Toyo

16 May 2008

Conclusion of Business and Capital Alliance Agreement

16 Oct 2008

Execution of Payment

６．Prospects:
The effect of this business and capital alliance for this fiscal year on bothconsolidated and non-consolidated business are expected to be immaterial for
Bridgestone and Toyo, although each company is expected to benefit from thisalliance in the middle- and long-term.
-END-Contact: Toyo Tire & Rubber Co., Ltd.
Corporate Communications Dept.
(+81-6-6441-8803)