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Republic Industries Ends Texas Litigation Against Toyota

23 July 1997

Republic Industries Ends Texas Litigation Against Toyota

    FORT LAUDERDALE, Fla., July 23 -- Citing favorable state
franchise regulations recently signed into law by Texas Governor George Bush,
Republic Industries, Inc. today announced that it has voluntarily withdrawn a
lawsuit against Toyota Motor Sales USA, and that it will drop a counterclaim
against Toyota that it had brought before the Texas Motor Vehicle Board.
    Republic said it is withdrawing its actions because recently amended
franchise law in Texas achieves the same objective it was seeking through
legal channels.
    Republic's lawsuit sought to remedy Toyota's decision to withhold its
consent in the transfer of a Toyota franchise from Joe Myers Toyota of Houston
to Republic Industries. Republic complained in its action that Toyota had
unreasonably withheld its consent to the transfer. Republic says the lawsuit
is now redundant because Texas House Bill 1595 limits a manufacturer's  right
to withhold consent to instances where the manufacturer can prove that a
transferee lacks the business experience or financial means to effect the
transaction -- conditions which Republic can easily satisfy.
    Republic Senior Vice President and General Counsel, Jim Cole, said, "The
recently amended franchise law in Texas solidifies Republic's legal rights and
makes further legal action on this particular matter unnecessary. We hope our
decision to withdraw the lawsuit marks the beginning of a more productive
dialogue with Toyota."
    Republic Industries, Inc. is a diversified holding company with
subsidiaries operating in the automotive retailing, automotive rental,
automotive financial services, solid waste services, and electronic security
services industries. The company owns the nation's largest chain of new
vehicle dealerships and is building a chain of used car megastores which it
operates under the AutoNation USA brand name. Republic also owns National Car
Rental System, Inc., Alamo Rent-A-Car, Inc., Spirit Rent-A-Car, Inc., and
Value Rent-A-Car, Inc., and has signed a definitive agreement to acquire
Snappy Car Rental, Inc.

SOURCE  Republic Industries, Inc.