OSAKA, JAPAN - August 12, 2008 - TOYO TIRE & RUBBER CO., LTD. (President and CEO: Kenji Nakakura) has announced its consolidated business results for the first quarter of FY 2008 (from April 1, 2008 to June 30, 2008). Compared with the same period of FY2007, net sales increased to 86,639 million yen (up 3,862 million yen or 4.6%), operating income decreased to 1,259 million (down 2,958 million yen or 70.1%), due to the increasing raw material prices, and ordinary income decreased to 1,205 million yen (down 3,035 million yen or 71.6%). Net loss was 1,438 million yen. (Net income of the first quarter of FY2007 was 3,632 million yen.)

Results by business segment are as follows:

1. Tires
The tire segment posted net sales of 62,141 million yen (up 3,673 million or 6.3% compared to the same period of the previous year), accounting for 71.7% of total net sales. Sales of original equipment tires for the domestic market significantly exceeded those of the first quarter of FY 2007 due to expanded sales of high value-added products. Sales volumes of replacement tires for the domestic market drastically decreased and net sales fell below the level of the same quarter of a year earlier, due to sluggish demand partly caused by increasing gasoline prices. Meanwhile, overseas sales volumes and amounts exceeded the levels of the same period of the previous year. In North American market, sales volumes increased, while net sales were on par with the level of the same period of the previous year, due to the impact of forex. In European and South East Asian market, sales volumes significantly increased thanks to steady growth in sales.

2. DT (DiverTech) and other business segments

DT and other business segments posted net sales of 24,498 million yen (up 190 million yen or 0.8% compared to the same period of FY2007), accounting for 28.3% of total net sales. In the transportation machinery field, net sales of anti-vibration rubber products for automobiles, the mainstay of this segment, significantly exceeded compared to the same period of a year earlier, owing to a steady increase in incoming orders both at home and abroad. However, orders for air springs for railway cars, anti-vibration rubber parts and automobile seat cushion fell below the levels of the same period of the previous year. In the fields of thermal insulation/waterproofing materials, net sales drastically decreased compared to the first quarter of FY2007, due to the sagging market of rigid polyurethane for thermal insulation applications. In the fields of industrial/building materials, net sales of standard anti-vibration rubber, rubber coated fabric, anti-vibration rubber for construction drastically decreased.

FY2008 (From April 1, 2008 to June 30, 2008)

FY2007 (From April 1, 2007 to June 30, 2007)

♦Business Results

Net Sales	86,639	82,777
Operating Income	1,259	4,217
Ordinary Income	1,205	4,240
Net Income	(1,438)	3,632
Net Income per share (Yen)	(6.88)	17.38

♦Financial Position

Total Assets	331,622	333,892
Net Assets	86,880	92,604
Capital Ratio (%)	25.6	27.0
Net Assets per Share (Yen)	406.54	432.04

♦Results By Business Segment

Tires Net Sales Operating Income	62,141 1,257	58,468 4,075
DT(DiverTech) and other business Net Sales Operating Income	24,498 (0)	24,308 136

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 intersegment transactions and transfers. 3. Operating incomes do not include elimination of intersegment transactions.

♦Results By Geographic Segment

Japan Net Sales Operating Income	44,546 (724)	42,369 2,263
North America Net Sales Operating Income	28,040 1,139	27,558 1,370
Other Net Sales Operating Income	14,052 545	12,849 475

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 intersegment transactions and transfers. 3. Operating incomes do not include elimination of intersegment transactions.

	FY2008 1Q (As of June 30, 2008)	FY2007 (As of March 31, 2008)
Assets
Current Assets
Cash on hand and in banks	14,601	10,737
Notes and accounts receivable - trade	72,329	68,175
Short-term investment securities	9	8
Merchandise and finished goods	36,345	35,480
Work in process	3,564	2,976
Raw materials and supplies	8,003	7,638
Other current assets	18,088	30,577
Allowance for doubtful accounts	(848)	(683)
Total Current Assets	152,092	154,912
Fixed Assets
Property, Plant and Equipment
Buildings and structures net	36,807	38,370
Machinery and equipment net	44,348	44,816
Other fixed assets net	37,705	36,334
Total Property, Plant and Equipment	118,861	119,520
Intangible Fixed Assets
Goodwill	692	935
Other intangible assets	2,396	2,531
Total Intangible Fixed Assets	3,088	3,467
Investments and Other Assets
Investment in securities	40,727	38,514
Other assets	17,322	17,968
Allowance for doubtful accounts	(470)	(491)
Investments and other assets	57,579	55,992
Total Fixed Assets	179,530	178,980
Total assets	331,622	333,892

	FY2008 1Q (As of June 30, 2008)	FY2007 (As of March 31, 2008)
Liabilities
Current Liabilities
Notes and accounts payable - trade	80,052	82,474
Commercial papers	6,500	2,000
Short-term bank loans	45,677	44,801
Corporate bonds due within one year	5,000	5,000
Income and enterprise taxes payable	797	1,481
Accounts payable - other	17,550	21,216
Provision for product compensation	2,571	3,262
Other current liabilities	14,827	12,054
Total Current Liabilities	172,975	172,290
Long-term Liabilities
Bonds	13,000	18,000
Long-term debt due after one year	32,205	26,464
Severance and retirement benefits	14,754	13,657
Other reserves	564	560
Other long-term liabilities	11,241	10,315
Total Long-term Liabilities	71,766	68,998
Total Liabilities	244,742	241,288
Net Assets
Shareholders' Equity
Common stock	23,974	23,974
Capital surplus	21,998	21,998
Retained earnings	27,512	30,952
Treasury stock	(102)	(100)
Total Shareholders' Equity	73,383	76,825
Accumulated Gains (Losses) from Revaluation and Translation Adjustments
Net unrealized holding gains on securities	14,835	13,294
Unrealized gains (losses) on hedging derivatives	(26)	55
Other comprehensive loss	-	(26)
Foreign currency translation adjustments	(3,221)	151
Total Accumulated Gains (Losses) from Revaluation and Translation Adjustments	11,587	13,474
Minority Interests in Consolidated Subsidiaries	1,910	2,303
Total Net Assets	86,880	92,604
Total Liabilities and Net Assets	331,622	333,892

	FY2008 1Q (Three months ended June 30, 2008)
Net sales	86,639
Cost of sales	65,013
Gross profit	21,625
Selling, general and administrative expenses	20,365
Operating Income	1,259
Other income
Interest income	17
Dividend income	451
Equity in net income of unconsolidated subsidiaries and affiliates	312
Others	538
Total other income	1,320
Other expenses
Interest expense	863
Others	511
Total other expenses	1,375
Ordinary Income	1,205
Extraordinary losses
Loss on disposal of fixed assets	195
Loss on revaluation of inventories	1,001
Severance and retirement allowance expenses	1,237
Total extraordinary losses	2,435
Loss Before Taxes	(1,230)
Income taxes - current	250
Minority interests in net loss of consolidated subsidiaries	(42)
Net Loss	(1,438)

	FY2008 1Q (Three months ended June 30, 2008)
Cash Flows from Operating Activities
Loss before taxes	(1,230)
Depreciation and amortization	4,776
Increase (decrease) in accrued retirement benefits for employees	1,128
Increase in provision for product compensation	(691)
Interest and dividend income	(469)
Interest expense	863
Foreign exchange loss (gain)	(502)
Equity in net income of unconsolidated subsidiaries and affiliates	(312)
Loss on disposal of fixed assets	195
Decrease (increase) in trade notes and accounts receivable	(7,534)
Decrease (increase) in deposits on factored trade receivables	10,834
Decrease (increase) in inventory	(4,653)
Increase (decrease) in accounts payable	1,683
Others, net	878
Sub-total	4,966
Interest and dividends received	829
Interest paid	(951)
Income taxes paid	(1,384)
Net cash provided by operating activities	3,460
Cash Flows from Investing Activities
Acquisition of property, plant and equipment	(7,201)
Proceeds from sale of property, plant and equipment	42
Acquisition of intangible fixed assets	(58)
Investment in securities	(2)
Others, net	370
Net cash used in investing activities	(6,850)
Cash Flows from Financing Activities
Net Increase (decrease) in short-term loans payable	4,157
Net Increase in commercial papers	4,500
Proceeds from long-term debt	7,711
Repayment of long-term debt	(1,031)
Payment for redemption of corporate bonds	(5,000)
Dividends paid	(1,881)
Dividends paid to minority shareholders	(49)
Others, net	(53)
Net cash provided by (used in) financing activities	8,352
Effect of foreign exchange on cash and cash equivalents	(1,098)
Net increase (decrease) in cash and cash	3,863
Cash and cash equivalents at beginning of the	10,733
Cash and cash equivalents at end of the period	14,597

© TOYO TIRE & RUBBER CO., LTD.

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