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Aug. 27, 2009

Announcement of the Termination of the Joint Venture Agreement of China

OSAKA, JAPAN – August 27, 2009 – TOYO TIRE & RUBBER Co., Ltd. (President and CEO: Kenji Nakakura) hereby announces that, at a Board of Directors’ meeting held today, it resolved to terminate its joint venture agreement regarding tire manufacturing in China.

1.Rationale for the termination
In response to increasing tire demands in accordance with the rapid progress of motorization in the Chinese market, the Company determined to construct its wholly-owned new tire plant in China. In addition to this, it agreed to terminate the joint venture in China and to switch to a consignment manufacturing, having achieved adequate results regarding the original business target.
Also, regarding the wholly-owned new plant, please refer to the separate announcement of “TOYO TIRES New Tire Plant in China” for details.

2.Substance of the termination

(1)Termination of Agreement among Cheng Shin Rubber Ind. Co., Ltd. (Taiwan) whom have a sub-company, Cheng Shin-Toyo Tire & Rubber (China) Co., Ltd. that manufacture tires and tubes for automobiles in China.

【Overview of the Cheng Shin-Toyo Tire & Rubber (China) Co., Ltd.】
Location: East Chaoyang Road, Kunshan Jiangsu, China
Representative: President Robert Lo
Business Description: Manufacturing and sales of radial tires and other rubber products for automobiles
Capital: US$ 195 million
Date of Contract: December 23, 1995
Ratio of Capital Contribution: TOYO TIRES 22.4%
Cheng Shin Rubber Ind. Co., Ltd.77.6%

(2)Termination of Agreement among Maxxis International Co., Ltd. (Cayman Islands, UK) and others whom have a sub-company, Cheng Shin-Toyo Tire (Xiamen) Co., Ltd. that mainly manufacture radial tires for trucks and buses.

【Overview of Cheng Shin-Toyo Tire (Xiamen) Co., Ltd.】
Location: No.15 Xiyuan Road, Haicang District, Xiamen, China
Representative: Chairman Sam. S.H. Chen
Business Description: Manufacturing and sales of radial tires and other rubber products for automobiles
Capital: US$ 100 million
Date of Contract: August 15, 2002
Ratio of Capital Contribution: TOYO TIRES 21.4%
Maxxis International Co., Ltd. and others 78.6%

3.Date of the termination
The termination of the joint venture should be on the contract date (August 27, 2009). The termination is to take effect on this date subject to obtaining approval from the Chinese government.

4.Forecast
Regarding the tires manufactured in the joint venture, they will continue to be delivered after switching to a consignment manufacturing agreement in the future. Therefore, it will not affect the Company’s sales activities.
Regarding the impact of the business performance for the first-half and full-year, please allow us to inform as soon as it is revised.


TOYO TIRE & RUBBER CO., LTD. CORPORATE COMMUNICATIONS PLANNING
Osaka Head office Telephone: +81-72-789-9100 Facsimile: +81-72-773-3272
Tokyo office Telephone: +81-3-5822-6621 Facsimile: +81-3-3865-2240

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