Charlotte, NC (October 20, 2005) - Continental Tire North America, Inc. (CTNA) announced today that the Company has begun negotiations with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) for a new labor agreement at Charlotte, North Carolina tire manufacturing plant. Although the current labor agreement between the parties does not expire until April 30, 2006, CTNA requested that the USW begin negotiations at this time to address high manufacturing costs at the Charlotte Plant.

"CTNA has informed the union that the Charlotte plant has the highest manufacturing costs of any Continental tire plant world wide," said CTNA's Vice President - Human Resources Rick Ledsinger. "By working together with our employees and their union representatives, we hope that we can negotiate a new agreement that will reduce our manufacturing costs and assure the future success of the Charlotte plant."

CTNA's Charlotte plant produces approximately 25,000 passenger and light truck tires per day for original equipment and replacement customers. The Charlotte plant currently employs approximately 900 hourly production and maintenance employees. These hourly employees are represented by the USW and its Local Union No. 850.  The current labor agreement between CTNA and the USW is effective from September 20, 1999 through April 30, 2006.

Continental Tire North America, Inc. (www.continentaltire.com), based in Charlotte, North Carolina, is a group company of Germany-based Continental Corporation, a leading supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomers. In 2004, the corporation realized sales of EUR 12.6 billion (USD 16 billion). At present it has a worldwide workforce of more than 81,000.