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USW Says Mayfield Closure Not a Surprise; More Proof of Continental's Strategy to Abandon North America

For Immediate Release                                             August 3, 2006

(Pittsburgh, Penna.) -- The United Steelworkers (USW) said today that Continental Tires North America's (CTNA) announcement that it was shutting down its remaining operations at its Mayfield, Kentucky plant was not totally unexpected.

"It was obvious to us long ago that Continental decided to abandon U.S. production," said USW executive vice president Ron Hoover. "Their business strategies and management teams never addressed the dynamics of this market and unlike other successful companies; they refused to develop a collaborative relationship with us."

The Mayfield plant once employed 2,400 workers when it was owned by GenCorp. Operations in General Tire's U.S. plants have gone steadily down hill since Continental AG of Germany acquired the facilities almost 20 years ago. In December 2004, CTNA announced an indefinite suspension of tire production in Mayfield. The latest layoffs are expected to begin around October 1, 2006, with remaining operations being discontinued around February 1, 2007. The final 107 workers at Mayfield will be permanently laid off.

"Conti never demonstrated any sense of dedicatio