Toyo Tire & Rubber Co., Ltd. (President and CEO: Kenji Nakakura) has announced its consolidated business results for the first three quarters of FY 2007 (from April 1, 2007 to December 31, 2007). Compared with the same period of FY 2006, net sales increased to ¥272,023 million (up ¥31,216 million or 13.0%), operating income increased to ¥12,951 million (up ¥4,629 million or 55.6%), and ordinary income increased to ¥11,266 million (up ¥5,499 million or 95.3%). Net income, however, decreased to ¥6,946 million (down ¥1,624 million or 18.9%), due to the fact that expenses expected to be incurred for repair work and other measures related to the "urethane-based heat-resistant building construction materials business" have been recorded as a special loss.

Results by business segment are as follows:

1. Tires
The tire segment posted net sales of ¥194,222 million (up ¥28,859 million or 17.5% over the same period of FY 2006), and operating income of ¥12,374 million (up ¥4,916 million or 65.9%). Sales of original equipment tires for the domestic market grew over the same period of FY 2006 due to expanded sales of products of high added value. Sales of replacement tires for the domestic market, however, fell below the FY 2006 level, due to sluggish demand, especially for studless tires. Meanwhile, overseas sales significantly exceeded the figure for the same period of FY 2006, thanks to considerable growth in sales and a steadily weakening yen.

2. DiverTech and other business segments
DiverTech and other business segments posted net sales of ¥77,800 million (up ¥2,357 million or 3.1% over the same period of FY 2006), and operating income of ¥569 million (down ¥316 million or 35.7% from the same period of FY 2006). Delays in construction starts resulting from the amendment to the Building Standards Act led to a decline in sales in the fields of industrial/building materials and thermal insulation/waterproofing materials. In the transportation machinery field, on the other hand, orders for anti-vibration rubber parts and air springs for railroad vehicles remained brisk, and sales exceeded those for the same period of FY 2006. Sales of the automotive parts segment also grew compared to the same period a year earlier, owing to steady increase in incoming orders for anti-vibration rubber parts, the mainstay of this segment, both at home and abroad.

First Three Quarters of FY2007 (From April 1, 2007 to Dec 31, 2007)

First Three Quarters of FY2006 (From April 1, 2006 to Dec 31, 2006)

♦Business Results

Net Sales	272,023	240,807
Operating Income	12,951	8,322
Ordinary Income	11,266	5,767
Net Income	6,946	8,570
Net Income per share (Yen)	33.23	40.99

♦Financial Position

Total Assets	343,578	345,324
Net Assets	97,265	100,236
Capital Ratio (%)	27.6	28.4
Net Assets per Share (Yen)	453.41	469.34

♦Results By Business Segment

Tires Net Sales Operating Income	194,222 12,374	165,363 7,458
DiverTech and Others Net Sales Operating Income	77,800 569	75,443 885

Note:

1. Segmentation in the above is based on the Company's internal rule and is for management purposes. 2. Net sales do not include inter-segmental transactions and transfers.

♦Results By Geographic Segment

Japan Net Sales Operating Income	210,583 7,941	204,941 8,858
North America Net Sales Operating Income	87,684 4,112	71,144 779
Other Net Sales Operating Income	41,020 1,370	27,425 -124

Note:

1. Geographic segmentation of countries and regions is based on geographical proximity. ("North America" includes the U.S.A. and Canada, and "Other" includes Europe, Oceania and other regions.) 2. Net sales do not include inter-segmental transactions and transfers.

© TOYO TIRE & RUBBER CO., LTD.

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