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Press Release

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Apr. 12, 2011

TOYO TIRES TO ACQUIRE 75% EQUITY INTEREST IN CHINA-BASED TIRE MANUFACTURER, SHANDONG SILVERSTONE LUHE RUBBER & TYRE CO., LTD.

Osaka, Japan- April 12, 2011– TOYO TIRE & RUBBER CO., LTD. (President and CEO: Kenji
Nakakura, the “Company”) announces a decision by its Board of Directors today to acquire a
75 % (Seventy-Five percent) equity interest in China-based tire manufacturer, Shandong
Silverstone Luhe Rubber & Tyre Co., Ltd. (“SSLRT”).

The Company has been working to improve its corporate value through a long-term global
growth strategy. Through this acquisition, the Company will now be in a position to supply truck
and bus tires from SSLRT, and passenger car tires from the Company’s new factory which is
under construction in Jiangsu province (Toyo Tires Zhangjiagang Co., Ltd.) This will in turn
enable the Company to meet strong demand in rapidly expanding markets in China and
elsewhere.

The Company plans to commence production of TOYO TIRES at this new subsidiary as soon
as practicable. The goal is to establish an optimal tire supply system, not only for China, but for
all of our overseas markets.

Overview of SSLRT

Entity Name: Shandong Silverstone Luhe Rubber & Tyre Co., Ltd.
Location: Luzhou Zhucheng River Industrial Park,
Shandong Province, China
Representative: Chan Ho Wai, Chairman
Business: Manufacture and distribution of motor vehicle tires
Paid-in Capital: 330,138,000 RMB (4,186 million Yen)
Date Established: December 21, 2004
Manufacturing Capacity: 400,000 units annually
Employees: 500
Current Shareholder: Lion Rubber Industries SDN. BHD. (“LRI”; Malaysia) holds
100% of the outstanding shares of SSLRT.

 

Financial Information of SSLRT for the Last 3 Fiscal Years:

 2008 Fiscal Year
(1-1-08 to 12-31-08)
2009 Fiscal Year
(1-1-09 to 12-31-09)
2010 Fiscal Year
(1-1-10 to 12-31-10)
Net Assets 164,991,000
2,092 million Yen
152,060,000
1,928 million Yen
115,306,000
1,462 million Yen
Total Assets 400,663,000
5,080 million Yen
412,720,000
5,233 million Yen
441,776,000
5,602 million Yen
Sales 217,144,000
2,753 million Yen
239,334,000
3,035 million Yen
398,045,000
5,047 million Yen
Operating Profit (61,729,000)
(783 million Yen)
(15,808,000)
(200 million Yen)
(36,749,000)
(466million Yen)
Net Profit (59,201,000)
(751 million Yen)
(12,931,000)
(164 million Yen)
(36,754,000)
(466 million Yen)

(Units: RMB; 1 RMB = 12.68 Yen as of March 31, 2011)

Company’s Equity Interest in SSLRT; Acquisition Price

Equity Interest before Acquisition: 0 % of total outstanding shares
Equity Interest to be Acquired: 75 % of total outstanding shares
Equity Interest after Acquisition 75 % of total outstanding shares
Acquisition Price: US$21,586,254 (JPY1.795B*)

(*US$ = JPY83.15 as of 3.31.11)

 

Acquisition Schedule

Date of Resolution of Company Board Meeting: April 12, 2011
Date of Acquisition Agreement: April 12, 2011
Estimated date of Acquisition Closing: Early June 2011

 

Future outlook

The Company is assessing the impact, if any, that this acquisition may have on its business results for the fiscal year ending March 31, 2012, and will make additional disclosures as may be required under the Tokyo Stock Exchange Timely Disclosure Rules.

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 decision, 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.

 

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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