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Republic Industries To Reprice Employee Stock Options

20 October 1998

Republic Industries To Reprice Employee Stock Options

        Excludes Board Members, Chairman, Vice Chairman and President

    FORT LAUDERDALE, Fla., Oct. 19 -- Republic Industries, Inc.
announced today that its Board of Directors has approved the
repricing of 32,110,000 employee stock options or less than seven percent of
fully diluted shares outstanding.  The options were repriced at $12.75, equal
to Republic's closing price on October 16, 1998.  No additional options will
be issued as part of the repricing, and option holders will be precluded from
exercising any of their repriced options prior to January 2, 2000.  All other
terms of the existing options, including the vesting schedules, remain
unchanged.  The company further stated that it intends to reduce the amount of
future option grants.
    Additionally, the company announced that it will not reprice the options
previously granted to members of its Board of Directors, including those
granted to its Chairman, H. Wayne Huizenga, President, Steven R. Berrard, and
Vice Chairman, Harris W. Hudson.
    "These options reach far into our organization, to thousands of employees.
These employees -- representing not only senior management, but also our key
field personnel, dealers and associates -- are the heart of the company," said
Steven R. Berrard, President and Co-Chief Executive Officer of Republic
Industries. "It is vital to the success of Republic Industries that these
employees remain with the company, stay motivated and continue to achieve our
long-term growth objectives.  We believe this action is an important step in
that direction."
    "This decision will positively affect key contributors at various levels
who are vital to the success of Republic Industries.  These people are
critical to the achievement of our business plan, and the enhancement of long-
term shareholder value," Mr. Berrard added.  "Attracting, retaining and
motivating experienced, dedicated employees is, indisputably, a critical
corporate objective.  Given that a large proportion of our remuneration
program consists of equity-based compensation, repricing the stock options
will help ensure that our interests remain aligned with those of our
shareholders."
    Republic Industries, Inc. operates subsidiaries in the automotive
retailing, automotive rental and solid waste industries.  The company owns the
nation's largest group of franchised automotive dealerships and operates the
AutoNation USA used vehicle megastores chain.  Republic also owns and operates
National Car Rental Systems, Inc., Alamo Rent-A-Car, Inc. and CarTemps USA.