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CART reports record third quarter 1999 results

28 October 1999

Posted By Terry Callahan
Motorsports Editor, The Auto Channel
DETROIT- Championship Auto Racing Teams, Inc. today announced record revenues, net income and earnings per share for the third quarter and nine months ended September 30, 1999.

The number of events held in a particular quarter will affect the comparability of earnings information from quarter to quarter. In the third quarter of 1999, CART conducted nine events compared to seven events in the third quarter of 1998.

Total revenues for the third quarter of 1999 were up 25% to $24.9 million from $19.9 million in the comparable quarter in 1998. Net income for the third quarter of 1999 was up to $6.6 million, compared to $4.0 million in the third quarter of 1998. On a diluted per common share basis, earnings were $0.41 in 1999 compared to $0.26 in the third quarter of 1998.

For the nine-month period ended September 30, 1999, revenues increased 16% to $57.7 million from $50.0 million. Net income rose to $15.7 million or $0.99 per diluted share versus $11.8 million, or $0.84 per diluted share. Weighted average diluted shares outstanding increased to 15.9 million shares for the nine months ended September 30, 1999 compared to 14.0 million shares outstanding for the nine months ended September 30, 1998.

Andrew Craig, CART Chairman and CEO said, "We had a strong quarter in every respect. In addition to the company's record financial results, CART raced for the first time in the Chicago market. A sell-out crowd of 65,000 on race day watched the champ cars bring world class racing to the windy city. This was a highly successful event and bodes well for the future of CART in America's third largest market."

The Company also announced the renewal contracts of FedEx Championship Series events in Long Beach, Mid-Ohio, Road America, Cleveland, and Australia. Total sanction fees over the life of the agreements are approximately $40 million, which represents a 22% increase on average in the renewal years.

Championship Auto Racing Teams, Inc. owns, operates and markets the FedEx Championship Series, which is comprised of 20 races in five countries on four continents in 1999. Drivers such as Michael Andretti, Adrian Fernandez, Christian Fittipaldi, Dario Franchitti, Bryan Herta, Tony Kanaan, Juan Montoya, Greg Moore, and Jimmy Vasser race 900-plus horsepower, open wheel cars at speeds of more than 230 miles per hour on some circuits. CART also owns and operates its top two development series, the PPG Dayton Indy Lights Championship and the KOOL Toyota Atlantic Championship.

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