Announcement of Revised Performance Forecast(26, May, 2006)

OSAKA, JAPAN - May 26, 2006 - Toyo Tire & Rubber Co., Ltd. (President: Yoshio Kataoka) has made a decision on the transfer of its shopping center leasing business in Itami at its Board of Directors meeting. The Company hereby revises its performance forecasts which were announced on May 16, 2006, as follows.

1. Revision of the non-consolidated performance forecast for the interim period of the fiscal year ending March 31, 2007 (from April 1, 2006 to September 30, 2006)

3. Revision of the non-consolidated performance forecast for the fiscal year ending March 31, 2007 (from April 1, 2006 to March 31, 2007)

(Unit: ¥ million)

	Net sales	Ordinary Income	Net Income
Previously announced forecast (A) (Released on May 16,2006)	246,000	5,100	3,800
Revised forecast (B)	246,000	5,000	6,200
Difference (B-A)	0	-100	2,400
Percentage change	-	-2.0%	63.2%
Results for the previous fiscal year ended March 31, 2006	236,910	9,689	4,070

4. Revision of the consolidated performance forecast for the fiscal year ending March 31, 2007 (from April 1, 2006 to March 31, 2007)

(Unit: ¥ million)

	Net sales	Ordinary Income	Net Income
Previously announced forecast (A) (Released on May 16,2006)	334,000	10,300	6,500
Revised forecast (B)	333,000	10,000	13,600
Difference (B-A)	-1,000	-300	7,100
Percentage change	-0.3%	-2.9%	109.2%
Results for the previous fiscal year ended March 31, 2006	300,249	10,453	5,378

5. Reason for the revision

1) Reason for the revision of the non-consolidated performance forecast

In order to sell all the assets related to the shopping center leasing business operated in
Itami City, Hyogo Prefecture, Toyo Tire & Rubber Co., Ltd. will transfer its interests in the
land (trust beneficiary rights) jointly owned with its wholly-owned subsidiary, I City Co., Ltd.,
and the shares in the subsidiary operating the business. The Company expects that the
transfer will generate an extraordinary gain, and the resultant net income will exceed the
forecasted figure previously announced.

2) Reason for the revision of the consolidated performance forecast
In addition to the reason for the revision of the non-consolidated performance forecast, the
gain from the in-kind contribution of land to the subsidiary, which was treated as an
unrealized gain and eliminated as a transaction between a parent company and its
subsidiary at the time of the establishment of I City Co., Ltd. (in 1999), will now be realized
through the sale of the subsidiary’s shares. It is intended that this gain will be posted as an
extraordinary profit, and the Company expects that the resultant net income will exceed
the forecasted figure previously announced.

6. Transfer of land (trust beneficiary rights)

Toyo Tire & Rubber Co., Ltd. transfers the following land (trust beneficiary rights) to I City Co., Ltd.,
for the purpose of the liquidation of assets.

1) Land (trust beneficiary rights) to be transferred, transfer price, etc.

(1) Name: Land for the shopping center in Itami
(2) Location: 1-1, Fujinoki 1-chome, Itami City, Hyogo, and other locations
(3) Transfer price: 5,050 million yen
(4) Transfer gain: 4,792 million yen

2) Transfer date: June 30, 2006

3) Transfer method
Toyo Tire & Rubber Co., Ltd. will place the land into trust, and transfer the beneficiary's
rights under the trust.

7. Transfer of shares in I City Co., Ltd.

1) Reason for the share transfer
Toyo Tire & Rubber will sell off its shopping center leasing business operated in Itami, to
liquidate the Company’s assets and concentrate management resources on core
businesses.

2) Outline of the subsidiary to be transferred
(1) Company name: I City Co., Ltd.
(2) Representative: Yusaku Yoshioka, President and Representative Director
(3) Location: 17-18, Edobori 1-chome, Nishi-ku, Osaka
(4) Establishment: March 30, 1999
(5) Description of business: Real estate leasing
(6) Close of the fiscal year: March 31
(7) Capital: 2,500 million yen
(8) Total number of shares issued: 50,000 shares
(9) Principal shareholders and ownership percentage:
Toyo Tire & Rubber Co., Ltd.: 100%
(10) Performance for the last two years

(Unit: ¥ million)

	Year ended March 31, 2006	Year ended March 31, 2005
Net Sales	1,242	1,242
Operating Income	240	274
Ordinary Income	111	141
Net Income	64	82
Total Assets	15,480	16,156

3) Transferee of I City Co., Ltd.
(1) Company name: Mitsubishi Corporation
(2) Head office: 3-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo

4) Number of shares to be transferred and transfer price
Number of shares to be transferred: 50,000 shares
Transfer price: 4,890 million yen (planned)

5) Schedule
May 26, 2006: Resolution of the Board of Directors
June 30, 2006: Stock transfer date