Michelin to Reduce Annual Costs by $200M To Increase Competitiveness

  Company Says It Will Largely Offset Reduction of 2,000 Jobs Through Normal
                  Attrition and Voluntary Severance Programs

    GREENVILLE, S.C., Sept. 10 Faced with a downturn in tire
markets and the need to increase its long-term competitiveness, Michelin North
America, Inc. today announced a plan to reduce some $200 million in annual
operating costs.  Implementation of the plan begins immediately.

    "We need to position ourselves for the future and cannot wait for the
markets to improve," said Jim Micali, chairman and president of Michelin North
America.  "We must get leaner and increase the focus on our core business so
when the markets do improve, Michelin can take advantage of every opportunity.
Through this cost reduction plan, we'll also improve our ability to weather
the inevitable down cycles of the industry," he continued.  "That's how we
will build sustainable profitability."

    Since announcing in April its intention to cut costs, Michelin has said
job reductions were "highly probable."  Today, the company confirmed its
intention to reduce its North American workforce by about 2,000 jobs or
7 percent by the end of 2003.  "We expect to achieve almost all of the
reductions through normal attrition and voluntary severance programs," said
Micali.  "In the event of involuntary separations, however, we will act
compassionately and provide a generous severance package."

    Michelin Group, the parent company of Michelin North America, today said
it will take a one-time charge against earnings of approximately $100 million
in the second half of 2001 to account for the restructuring costs.  There will
be no material savings realized in 2001.

    Throughout the cost reduction process, many employees contributed
suggestions and participated in focus groups, organized by nine task forces.
The task forces examined every aspect of Michelin North America's business and
came up with the cost reduction plan.  Officials say the plan will touch every
aspect of Michelin North America and does not target any one job
classification, location, state, province or region.

    Originally, the company had planned to identify a $125 million reduction
in its annual operating costs and announce the results of its efforts in late
July.  Given the continued decline in the markets since the April
announcement, however, Michelin determined that an additional $75 million in
reductions was necessary for long-term competitiveness, and found places where
it was achievable.  As a result, the company will reduce annual operating
costs by $125 million by year-end 2002 and by another $75 million by year-end
2003.

    In harmony with the cost reduction effort, the company will continue to
invest in its future.  In July, Michelin expanded its Lexington County, S.C.
campus, where it now produces agricultural tires for the North American
market.  And in August, the company expanded in Anderson County, S.C., where
it now has a second facility that produces semi-finished materials for tire
plants.