Tokyo - The Yokohama Rubber Co., Ltd. announced today that based on its recent performance trends, it has revised its consolidated and non-consolidated forecasts for the first half of fiscal 2007 (April 1, 2006 to September 30, 2006), which were publicized on May 11, 2006 in the announcement of financial results for fiscal year 2006. The current revised consolidated forecast includes 222.0 billion yen for net sales, a 0.9% increase over the previous forecast, 3.0 billion yen for ordinary profit, a 172.7% increase compared to same, and 3.3 billion yen for net income, a 450.0% increase.

Although affected by increases in prices of raw materials, mainly natural rubber, the forecast for ordinary profit exceeds the previous one, reflecting improved cost reduction, profits from consolidated affiliates in North America, and a weaker-than-expected foreign exchange rate of yen. The current revised forecast for net income is attributable to an increase in extraordinary gain as a result of sale of some investment securities held by the company, in addition to the increased ordinary profit. We will publicize our consolidated and non-consolidated forecasts for the entire fiscal year at the time of announcing the results for the first half of this fiscal year.