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Oct. 21, 2010

TOYO TIRES TO ACQUIRE MALAYSIA-BASED TIRE MANUFACTURER, SILVERSTONE BERHAD

Osaka, Japan; 21 October, 2010 – TOYO TIRE & RUBBER CO., LTD. (President and CEO: Kenji Nakakura, the “Company”) announces a decision by its Board of Directors today to acquire all of the shares of Malaysia-based tire manufacturer Silverstone Berhad (“Silverstone”), and the execution today of a stock purchase agreement with Silverstone’s sole shareholder, Silverstone Corporation Berhad.

As part of its long-term global plan, the Company is currently at work on the third phase expansion of the Toyo Tire North America Manufacturing Inc. facility in the United States, and has commenced construction of a China tire manufacturing plant at Toyo Tires Zhangjiagang Co., Ltd. Through this acquisition of Silverstone, the Company is now positioned to make a full-scale entry into the fast-growing Southeast Asia market.

The Company plans to commence production of TOYO and NITTO brand tires at this new subsidiary as soon as practicable, while building an export distribution network centered on Asia. The Company also has plans to further improve the quality of the Silverstone brand tire, with the goal of expanding sales throughout Asia. By strengthening the foundation of its tire business, the Company has established a plan for growth and cost competitiveness. In this way, the Company aims to increase its corporate valuation.

Overview of Silverstone Berhad
Company Name : Silverstone Berhad
Head Office : LEVEL 14, Office Tower, No. 1 Jalan Nagasari (off Jalan Raja Chulan), 50200 Kuala Lumpur, Malaysia
Representatives : Tan Sri William H.J. Cheng (Chairman)
Chan Ho Wai (Director)
Business Activity : Manufacture and sale of motor vehicle tires
Paid-in Capital : 203,877,000 Ringgit
Date Established : 12 July, 1986
Shareholder (shares) : Silverstone Corporation Berhad (100%)

Financial Information for the Last 3 Fiscal Years :
  2008 Fiscal Year
(7-1-07 to 6-30-08)
2009 Fiscal Year
(7-1-08 to 6-30-09)
2010 Fiscal Year
(7-1-09 to 6-30-10)
Consolidated
Net Assets
316,065,000
(8,578 million Yen)
331,474,000
(8,996 million Yen)
285,674,000
(7,753 million Yen)
Consolidated
Total Assets
688,124,000
(18,675 million Yen)
647,248,000
(17,566 million Yen)
607,237,000
(16,480 million Yen)
Consolidated
Sales
412,969,000
(11,207 million Yen)
404,082,000
(10,966 million Yen)
433,486,000
(11,764 million Yen)
Consolidated
Net Profit
12,444,000
(337 million Yen)
15,408,000
(418 million Yen)
33,569,000
(911 million Yen)

(Units: Ringgit; 1 RM = 27.14 Yen)

Acquiring Number of Shares; Acquisition Price
Number of Shares Acquired : 203,877,500 shares
Purchase price : 462,000,000 Ringgit (approximately 12,538 million Yen)

Schedule of Transaction
Date of Resolution of Company Board Meeting : 21 October, 2010
Date of Stock Purchase Agreement : 21 October, 2010
Expected date of stock transfer : late January, 2011

Future outlook

The Company is assessing the impact, if any, that this acquisition may have on its consolidated earnings results for the year ending March 31, 2011, and will make an announcement at a later date.

Disclaimer

No information on this news release is intended as either an offer to sell, or a solicitation of an offer to buy, any securities of TOYO TIRE & RUBBER CO., LTD. When making any investment decisions, investors should review securities reports, filed or submitted by the Company with the relevant regulatory authorities, and should exercise their own judgment in making their investment decisions. Furthermore, with the exception of historical facts, any current plans, strategies or beliefs held by TOYO TIRE & RUBBER CO., LTD. As expressed in this news release shall be considered a forward-looking statement. These statements are based on management’s assumptions and beliefs in light of the information currently available. The assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements.

For more information, please contact our web site
“Inquires about General”
https://i01.smp.ne.jp/u/toyorubber/english/index.html


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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