OSAKA, JAPAN - November 11, 2008 - TOYO TIRE & RUBBER CO., LTD. (President and CEO: Kenji Nakakura) has announced its consolidated business results for the first half of FY 2008 (from April 1, 2008 to September 30, 2008). Compared with the same period of FY2007, net sales increased to 172,820 million yen (up 1.8%), mainly due to the recession in the world by the worsening financial crisis in the U.S and the increase of raw materials such as natural rubber and petrified raw materials. Operating income decreased to 1,177 million yen (down 83.4%), and ordinary income decreased to 274 million yen (down 95.6%). Net loss was 2,214 million yen. (Net income of the same period of FY2007 was 637 million yen.)

Results by business segment are as follows:

1. Tires
The tire segment posted net sales of 122,511 million yen (up 2.1% compared to the same period of the previous year), accounting for 70.9% of total net sales. Operating income decreased to 1,131 million yen (down 83.8%).
Sales of original equipment tires for the domestic market significantly exceeded those of the first half of FY 2007 due to expanded sales of high value-added products in steadily increasing car production in Japan.
Sales volumes of replacement tires for the domestic market 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 exceeded those of the first half of FY 2007. However, sales amounts were same level as the same period of the previous year. In North American market, sales volumes and amount fell below the level of the same period of a year earlier, due to the impact of the rapid economic slowdown in the U.S. In European, Middle East and Asian market, sales volumes increased steadily.

2. DT (DiverTech) and other business segments

DT and other business segments posted net sales of 50,309 million yen (up 1.2% compared to the same period of FY2007), accounting for 29.1% of total net sales. Operating income decreased to 51million yen (down 43.8%).
In the transportation machinery field, net sales significantly exceeded compared to the same period of a year earlier, owing to a steady increase in incoming orders of anti-vibration rubber products for automobiles, that is the mainstay of this segment, at home and its production expansion in subsidiaries in China. Also, net sales of air springs for railway cars exceeded compared to the same quarter of a year earlier. Net sales of automobile seat cushion were the levels of the same period of the previous year.
In the fields of industrial/building materials, net sales of standard anti-vibration rubber were also the same level as the year earlier. Net sales of hoses fell below the level of the previous year owing to low demand. Net sales of standard anti-vibration rubber significantly increased compared to the same period of the previous year, due to a steady increase in incoming orders.
In the fields of thermal insulation/waterproofing materials, net sales drastically decreased compared to the first half of FY2007, due to flagging market.

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

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

♦Business Results

Net Sales	172,820	169,778
Operating Income	1,177	7,086
Ordinary Income	274	6,194
Net Income	(2,214)	637
Net Income per share (Yen)	(10.59)	3.05

♦Financial Position

Total Assets	332,135	333,892
Net Assets	85,915	92,604
Capital Ratio (%)	25.2	27.0
Net Assets per Share (Yen)	401.00	432.04

♦Results By Business Segment

Tires Net Sales Operating Income	122,511 1,131	120,048 6,988
DT(DiverTech) and other business Net Sales Operating Income	50,309 51	49,729 90

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	93,605 △1,839	86,884 3,936
North America Net Sales Operating Income	52,391 1,674	56,944 2,189
Other Net Sales Operating Income	26,824 943	25,949 966

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.

	End of previous fiscal year March 31, 2008		End of current fiscal year September 30, 2008		Increase (Decrease)
	Amount	Ratio	Amount	Ratio	Amount
(Assets) I. Current Assets	154,912	46.4	156,193	47.0	1,281
Cash on hand and in banks Notes and accounts receivable - trade Inventories Deferred tax assets Other current assets Allowance for doubtful accounts II. Fixed assets	10,737 68,175 46,096 5,151 25,435 (683) 178,980	53.6	10,152 73,980 53,233 5,637 13,958 (768) 175,941	52.9	(585) 5,804 7,136 486 (11,476) (85) (3,039)
Property, plant and equipment	119,520		120,123		602
Buildings and structures Machinery and transportation equipment Tools, furniture and fixtures Land Lease assets(Tangible) Construction in progress Intangible fixed assets	38,370 44,816 10,545 21,869 - 3,919 3,467		36,748 45,082 9,614 21,765 1,645 5,267 3,095		(1,622) 266 (930) (104) 1,645 1,347 (371)
Investments and other assets	55,992		52,722		(3,269)
Investment securities Long-term loans receivable Deferred tax assets Other assets Allowance for doubtful accounts III. Deferred assets	38,514 891 2,626 14,450 (491) -	-	34,412 792 3,160 14,860 (503) -	-	(4,102) (99) 533 410 (12) -
Bond issue cost	-	-	-	-	-
Total assets	333,892	100.0	332,135	100.0	(1,757)

	End of previous fiscal year March 31, 2008		End of current fiscal year September 30, 2008		Increase (Decrease)
	Amount	Ratio	Amount	Ratio	Amount
(Liabilities) Current liabilities	172,290	51.6	157,840	47.5	(14,450)
Notes and accounts payable - trade Commercial papers Short-term bank loans Corporate bonds due within one year Accounts payable - other Income taxes payable Provision for product warranty Other current liabilities Fixed liabilities	82,474 2,000 44,801 5,000 21,216 1,481 3,262 12,054 68,998	20.7	71,318 0 48,400 5,000 17,772 501 2,248 12,599 88,379	26.6	(11,155) (2,000) 3,599 - (3,444) (980) (1,014) 545 19,381
Bonds Long-term debt Lease liabilities Reserve for retirement benefits Reserve for retirement benefits for directors and corporate auditors Provision for environmental remediation Deferred tax liabilities Other fixed liabilities	18,000 26,464 - 13,657 55 505 9,685 629		23,000 40,061 1,366 14,661 63 438 8,488 298		5,000 13,597 1,366 1,003 7 (66) (1,196) (331)
Total liabilities	241,288	72.3	246,219	74.1	4,931
(Net assets) Shareholders' equity	76,825	23.0	72,606	21.8	(4,219)
Capital stock Capital surplus Retained earnings Treasury stock Accumulated gains (losses) from revaluation and translation adjustments	23,974 21,998 30,952 (100) 13,474	7.2 6.6 9.3 (0.0) 4.0	23,974 21,997 26,737 (102) 11,203	7.2 6.6 8.0 (0.0) 3.3	- (1) (4,215) (2) (2,271)
Net unrealized holding gains on securities Net unrealized gains (losses) on hedging derivatives Net unrealized gains (losses) on factored receivables Foreign currency translation adjustments Minority interests	13,294 55 (26) 151 2,303	4.0 0.0 (0.0) 0.0 0.7	11,873 150 - (820) 2,104	3.5 0.0 - (0.2) 0.6	(1,421) 95 26 (971) (199)
Total net assets	92,604	27.7	85,915	25.8	(6,689)
Total liabilities and net assets	333,892	100.0	332,135	100.0	(1,757)

	Previous fiscal year		Current fiscal year		Increase (Decrease)
	FY2007 (From April 1, 2007 to September 30, 2007)		FY2008 (From April 1, 2008 to September 30, 2008)
	Amount	Ratio	Amount	Ratio	Amount
Net sales Cost of sales Gross profit	169,778 121,368 48,409	100.0 71.4 28.5	172,820 130,340 42,480	100.0 75.4 24.5	3,042 8,971 (5,928)
Selling, general and administrative expenses Operating income	41,322 7,086	24.3 4.1	41,303 1,177	23.8 0.6	(18) (5,909)
Non-operating income	1,927	1.1	1,878	1.0	(48)
Interest and dividend income Equity in net income of unconsolidated subsidiaries and affiliates Others Non-operating expenses	496 890 539 2,820	1.6	523 792 562 2,781	1.6	26 (97) 22 (38)
Interest expense Exchange loss Others Ordinary income	1,554 486 778 6,194	3.6	1,630 372 779 274	0.1	75 (114) 1 (5,920)
Extraordinary income	436	0.2	892	0.5	456
Gain on disposal of fixed assets Gain from sales of investment securities Extraordinary losses	436 - 5,477	3.2	223 669 3,576	2.0	(213) 669 (1,901)
Loss on disposal of fixed assets Retirement allowance expenses Loss on cancellation of leases Unrealized loss on investment securities Transfer of provision for product warranty Losses related to lawsuits Loss on valuation of inventories Net income before income taxes	817 258 208 159 4,035 - - 1,152	0.6	505 1,237 - 134 570 126 1,001 (2,409)	(1.3)	(312) 979 (208) (24) (3,465) 126 1,001 (3,561)
Income taxes - current Income taxes - deferred Minority interests in income Net income	96 355 63 637	0.0 0.2 0.0 0.3	(517) 350 (27) (2,214)	(0.2) 0.2 (0.0) (1.2)	(613) (5) (90) (2,851)

	Previous fiscal year	Current fiscal year
	FY2007 (From April 1, 2007 to September 30, 2007)	FY2008 (From April 1, 2008 to September 30, 2008)
I. Cash flows from operating activities
Net Income before income taxes	1,152	(2,409)
Depreciation and amortization	9,297	9,720
Equity in net income of unconsolidated subsidiaries and affiliates	(890)	(792)
Foreign exchange gain (loss)	485	77
Increase (decrease) in reserve for retirement allowance	(228)	995
Increase in provision for product warranty	4,035	(1,014)
Interest and dividend income	(496)	(523)
Interest expense	1,554	1,630
Gain on sale of fixed assets	(436)	(223)
Loss on disposal of fixed assets	817	505
Gain on sale of investment securities	0	(669)
Gain on valuation of investment securities	159	134
Decrease (increase) in trade notes and accounts receivable	(1,943)	(6,578)
Decrease (increase) in deposits on factored trade receivables	(1,163)	10,580
Decrease (increase) in inventory	(3,267)	(8,357)
Increase (decrease) in accounts payable	(2,618)	(9,268)
Other, net	(1,230)	(2,312)
Sub-total	5,226	(8,504)
Interest and dividends received	469	947
Interest paid	(1,884)	(1,496)
Income taxes paid	39	(1,840)
Net cash provided by (used in) operating activities	3,850	(10,894)
II. Cash flows from investing activities
Acquisition of property, plant and equipment	(9,004)	(11,722)
Proceeds from sale of property, plant and equipment	473	1,028
Acquisition of intangible fixed assets	(427)	(288)
Investment in securities	(1,074)	(321)
Proceeds from sale and redemption of investment securities	0	938
Proceeds from repayment of investment securities	-	1,288
Acquisition of stocks of subsidiaries and affiliates	(90)	-
Other, net	(20)	(124)
Net cash used in investing activities	(10,143)	(9,202)
III. Cash flows from financing activities
Net Increase (decrease) in short-term loans payable	1,657	7,266
Net Increase in commercial papers	-	(2,000)
Proceeds from long-term debt	7,096	15,582
Repayment of long-term debt	(5,518)	(4,018)
Proceeds from issuance of corporate bonds	-	9,950
Payment for redemption of corporate bonds		(5,000)
Dividends paid	(1,881)	(1,881)
Dividends paid to minority shareholders	(18)	(49)
Others, net	(34)	(103)
Net cash provided by financing activities	1,319	19,747
IV. Effect of foreign exchange rate changes on cash and cash equivalents	237	(236)
V. Net increase (decrease) in cash and cash equivalents	(4,736)	(584)
VI. Cash and cash equivalents at beginning of year	16,346	10,733
VII. Increase in cash and cash equivalents due to increase in the number of consolidated companies	70	-
VIII. Cash and cash equivalents at end of year	11,680	10,148

© TOYO TIRE & RUBBER CO., LTD.

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