CHAMPCAR/CART: CART revised annual earnings Guidance for 2001

The Company is revising its annual earnings guidance that was provided in April, as follows: **Total revenue is now expected to be approximately $71 - $73 million ** Pre-tax profit for the year is expected to be approximately...

The Company is revising its annual earnings guidance that was provided in April, as follows:

**Total revenue is now expected to be approximately $71 - $73 million

** Pre-tax profit for the year is expected to be approximately 26% of total revenues

** EPS is expected to be approximately $0.76 - $0.80

Sanction fees for 2001 are now forecast to be approximately $47.2 million, an increase of approximately 21% when compared to 2000. This assumes 20 races will be run in the Fed Ex Championship Series, since at the date of this release there has been no agreement with respect to an alternative race date for the event previously scheduled to be held at the Texas Motor Speedway.

Sponsorship revenue is now forecast to be approximately $13 - $13.5 million, a decrease of approximately 37% when compared to 2000. The decrease is primarily attributable to the loss of the minimum guarantee upon termination of the marketing agreement, as previously announced.

Television revenue is forecast to be approximately $6 - $6.5 million, an increase of 9% - 18% when compared to 2000. Television contracts with ESPN and Brazilian television have minimum guarantee provisions that contain annual escalation amounts. CART receives additional television revenue from advertising, from radio programming and rights fees.

Engine-lease rebuilds and wheel sales are now forecast to be approximately $1.0 million, a decrease of approximately 50% from 2000. The decrease is due to fewer entries in the Dayton Indy Lights development series.

Other revenues are now forecast to be approximately $4 - $4.5 million, a decrease of approximately 40% - 46%. The decrease is due to a reduction in royalty revenue from licensed products sales, lower membership and entry fees due to fewer entries in the two CART development series and certain non-recurring revenue received in 2000 that we will not receive in 2001.

Race payments are forecast to be approximately $17.2 million, an increase of approximately 12%. The increase is attributable to an expense reimbursement to CART's race teams related to the two new races in Europe in 2001.

Race expenses are forecast to be approximately $11 - $11.5 million, an increase of approximately 11% - 17%. The increase is due to added personnel and increased travel costs in 2001 when compared to 2000.

Administrative and other indirect expenses are forecast to be approximately $30 - $31.0 million, an increase of approximately 19% - 23%. The increase is due to developing the company's strategic plan and infrastructure and an increased investment in marketing, promotion, public relations, television and entertainment-related projects. Included in administrative and other indirect expenses is $1.2 million related to payments made under severance agreements with former employees.

Depreciation and amortization is forecast to be approximately $1.6 - $1.7 million, an increase of approximately 18% - 26% in 2001 when compared to 2000. The increase is due to additional capital expenditures forecast at between $1.5 - $2 million for 2001.

Heitzler commented, "We've budgeted dollars to invest in our business. Part of this increased investment is for the development and implementation of our strategic plan to build CART's future. In addition, we've increased our investment in television and internet expenditures to help increase the exposure of CART to more fans. We've also increased our marketing opportunities through co-promotions with our race promoters that are intended to increase attendance and promote a consistent 'CART Branding'. We firmly believe that these expenditures will help CART thrive and contribute to our future growth."

CART's quarterly results vary based on the number of races held during the quarter. In addition, the mix between the type of race (street course, superspeedway, domestic or international) and the sanction fees attributed to those races will affect quarterly results. Consequently, changes in the race schedule from year to year, with races held in different quarters, and the timing of certain initiatives will result in fluctuations in the Company's quarterly results and affect comparability. Therefore, CART provides guidance on an annual basis and will not provide quarterly forecasts.

Share Repurchase Update

On April 17, 2001, the Board of Directors authorized the purchase of up to 2.5 million shares of its outstanding common stock in open market or privately negotiated transactions. Repurchases under the program will be made at the discretion of management based upon market, business, legal, accounting and other factors, and accordingly, there is not a guarantee as to the timing or number of shares to be repurchased.

Since the authorization of the repurchase program, the Company has repurchased 585,900 shares of its common stock through its share repurchase program at an average cost of $15.01 per share including commissions. The Company intends to retire such shares.

Championship Auto Racing Teams, Inc. (NYSE: MPH) owns, operates and markets the FedEx Championship Series. Champions Michael Andretti, Gil de Ferran, Alex Zanardi and Jimmy Vasser are among the drivers who battle for the FedEx Championship Series title on oval circuits as well as temporary and permanent road courses. CART also owns and operates its top two development series, the Dayton Indy Lights Championship and the Toyota Atlantic Championship. Learn more about CART's open-wheel racing series at www.cart.com.

Statements made in this release that state the Company's or management's beliefs or expectations and which are not historical facts or which apply prospectively are forward-looking statements. It is important to note that the Company's actual results could differ materially from those contained or implied by such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings including, but not limited to, the Form 10-K and subsequent Forms 10-Q. Copies of those filings are available from the Company and the SEC.

- CART -

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Series Automotive , IndyCar
Drivers Gil de Ferran , Michael Andretti , Jimmy Vasser , Alex Zanardi