CHAMPCAR/CART: CART sues ISL Marketing

DETROIT (February 28, 2001) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today announced that it has filed a complaint against ISL Marketing AG in Oakland (Mich.) County Circuit Court seeking compensatory and consequential damages in excess...

DETROIT (February 28, 2001) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today announced that it has filed a complaint against ISL Marketing AG in Oakland (Mich.) County Circuit Court seeking compensatory and consequential damages in excess of $100 million.

ISL has served as CART's exclusive worldwide marketing agent since the execution of the contract in 1998, seeking sponsorship for the open-wheel sanctioning organization. The agreement obligates ISL to guarantee a pre-determined amount of income to CART.

In the suit, CART alleges fraudulent inducement; breach of the agreement; and failure by ISL to pay more than $6 million due to CART with respect to its 2000 guarantee. The company indicated that discussions to resolve the matter had been ongoing but have reached an impasse. CART has concluded that it has no choice but to pursue legal action against ISL.

-CART-

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Series Automotive , IndyCar