03.07.2007

CHARLOTTE, NC (March 7, 2007) -  Continental Tire North America, Inc. (CTNA) today announced the Regional National Labor Relations Board (NLRB) has dismissed unfair labor practice (ULP) allegations filed against the company by the United Steelworkers (USW) regarding labor negotiations between CTNA and the Union in 2006.

NLRB Regional Director Willie L. Clark, Jr. specifically found that “there is insufficient evidence of a violation and further proceedings are not warranted” with regard to USW allegations that CTNA did not provide information to the Union and did not lawfully reach impasse before implementing production and staffing decisions in Charlotte. In response to these allegations, the NLRB found that CTNA did not violate any labor laws. Instead, the NLRB found that CTNA:

• Did provide the Union with necessary and relevant information for the purposes of bargaining
• Did lawfully reach impasse with the Union prior to implementing its last, best and final proposal and it’s restructuring plan
• Did lawfully implement production curtailments and layoffs in Charlotte

“The NLRB’s decision to dismiss these allegations validates what we have said all along – that from day one we bargained in good faith with the United Steelworkers,” said CTNA spokesman Rick Holcomb. “It is our hope that the Union will adhere to the same standard and that we can now move forward and conclude our negotiations.”

CTNA is still in negotiations with the USW regarding the effects of the indefinite suspension of tire production at the Charlotte plant. The negotiations have been ongoing since July 18, 2006, but since September 5, 2006, the union has refused to bargain with CTNA on retiree medical benefits. As a result of the Union’s refusal to bargain, CTNA filed a ULP charge against the Union with the NLRB on March 1, 2007. The NLRB is currently investigating this charge.

About Continental Tire North America, Inc.
Continental Tire North America, Inc. (www.continentaltire.com), based in Charlotte, is a group company of Germany-based Continental AG, a leading systems supplier to the automotive industry.  Continental Tire North America, Inc. has almost 6,500 employees and operates 6 plants in North America.  It is a major supplier to the original equipment and replacement tire markets, selling Continental, General, Euzkadi and private brands.