Penske Motorsport PR 97-05-19

TO BUSINESS AND AUTO EDITORS: Penske Motorsports Acquires Control of North Carolina Motor Speedway DETROIT, May 19 /PRNewswire/ -- Penske Motorsports, Inc. (PMI) (Nasdaq: SPWY) today announced that it has acquired a controlling interest ...

TO BUSINESS AND AUTO EDITORS: Penske Motorsports Acquires Control of North Carolina Motor Speedway DETROIT, May 19 /PRNewswire/ -- Penske Motorsports, Inc. (PMI) (Nasdaq: SPWY) today announced that it has acquired a controlling interest in North Carolina Motor Speedway (NCMS) from Mrs. Carrie B. DeWitt, its majority shareholder, by exercising its option to purchase her shares. In exchange for her NCMS shares, Mrs. DeWitt received 906,542 shares of PMI stock. PMI now owns approximately 70% of NCMS. PMI proposed the merger of NCMS and PMI earlier this year at a meeting of the NCMS Board of Directors. In the merger, each stockholder of NCMS would receive, at his or her option, either $18.61 in cash per share of NCMS stock or that number of shares of PMI stock equal to $18.61 multiplied by the shares of NCMS stock held, divided by $30.00 (approximately 6/10ths of a share of PMI for each share of NCMS). Pursuant to the plan of merger wherein PMI would increase its ownership of NCMS from 70% to 100%, PMI has asked the NCMS Board of Directors to proceed with its current analysis of the PMI proposal, and the merger proposal submitted by Speedway Motorsports, Inc. PMI will vote in favor of the merger of PMI and NCMS at an upcoming meeting of NCMS Board of Directors. Richard J. Peters, President and Chief Executive Officer of PMI said, "We are excited about the opportunity to grow NCMS, and gratified by the confidence Mrs. DeWitt and her family have placed in our Company. In light of the transaction, I have asked the Board of Directors of NCMS to accelerate consideration of our merger proposal which I believe is in the best interest of all NCMS shareholders and other constituents." Mrs. Carrie B. DeWitt, Chairman of the Board of NCMS, said, "I am very pleased to be associated with the Penske organization, and believe strongly in the enormous potential of PMI. Penske's business reputation in the communities they serve is also outstanding. It is important now for our minority shareholders, the community, and our employees to complete this merger and focus our efforts on our October Winston Cup event." NCMS, a one-mile oval track located in Rockingham, North Carolina, was constructed in 1965 by a group of local investors, including Mrs. Carrie B. DeWitt and her husband, the late L.G. DeWitt. NCMS promotes two NASCAR Winston Cup Series Events, the "Goodwrench Service 400" which was presented on February 23rd, and the "ACDelco 400" scheduled for October 26th. It also hosts two Busch Series Grand National events, the "Goodwrench Service 200" which was presented on February 22 and the "ACDelco 200" scheduled for October 25. NCMS is also the site for the Unocal Rockingham World Pit Crew Championship in October, the only NASCAR sanctioned pit crew event. The track has 42,951 reserved and 3,000 unreserved grandstand seats, and 33 luxury boxes. Penske Motorsports, Inc. is a leading promoter and marketer of professional motorsports in the United States. PMI owns and operates, through its 100% owned subsidiaries, Michigan Speedway in Brooklyn, Michigan; Nazareth Speedway in Nazareth, Pennsylvania; California Speedway, in San Bernadino County, California, and has controlling interest in North Carolina Motor Speedway in Rockingham, North Carolina. PMI also produces and markets motorsports-related merchandise and accessories such as apparel, souvenirs, collectibles; and it distributes and sells Goodyear brand racing tires in the Midwest and Southeast regions of the United States. SOURCE Penske Motorsports, Inc.

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Series NASCAR Cup