Charlotte, NC (September 16, 2005) - On September 16, 2005, Continental Tire North America, Inc. (CTNA) announced that the company has reached a tentative agreement with representatives of the United Steel, Paper And Forestry, Rubber, Manufacturing, Energy, Allied Industrial And Service Workers International Union and its Local No. 665 (collectively, The "Union") on an enhanced severance package for hourly employees laid off as a result of the indefinite suspension of tire production at the Mayfield plant late last year.

"Continental Tire worked for many months to develop a comprehensive package to assist our laid off Mayfield employees," said Rick Ledsinger, Vice President of Human Resources. "This agreement will provide much needed relief to our displaced Mayfield employees as well as benefits for employees that are waiting for jobs in the plant to become available."

Details of the agreement have not been released pending a ratification vote by the Union's membership. In addition to providing an enhanced severance package, the tentative agreement also resolves all pending legal disputes between the Company and the Union pertaining to the indefinite suspension of tire production at the Mayfield Plant.

CTNA announced the indefinite suspension of tire production at the Mayfield Plant on June 30, 2004. CTNA and the Union had been negotiating over benefits for laid off Mayfield employees since September 1, 2004.

About Continental Tire North America, Inc.

Continental Tire North America, Inc. (www.continentaltire.com), based in Charlotte, North Carolina, is a group company of Germany-based Continental AG, a leading systems supplier to the automotive industry. With annual sales of more than a billion dollars, Continental Tire North America, Inc. has about 7,000 employees and operates six plants in North America. CTNA is a major supplier to the original equipment and replacement tire markets, selling Continental, General, Euzkadi and private brands in North America.