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Adverse Result in Republic Industries Case Will Not Affect Nissan

5 February 1999

Adverse Result in Republic Industries Case Will Not Affect Nissan's Policies or Agreements

    CARSON, Calif., Feb. 3 -- Today, in a hearing in the
litigation between Nissan North America, Inc. and Republic Industries, the
California Federal Court issued summary judgment in favor of Republic,
dismissing Nissan's lawsuit.
    Nissan filed the lawsuit last April due to Republic's refusal to honor its
March 1997 agreement to abide by Nissan's dealer ownership limits.  In effect,
Republic refused to recognize Nissan's right to manage its own retail
distribution system.  Nissan's objective remains, as it was when it initiated
the litigation, to enforce its dealer policies and prior agreement with
Republic.
    In response to today's decision, Whitfield Ramonat, director of operations
for the Nissan Division of Nissan North America, issued the following
statement:
    "Nissan relied in good faith upon Republic's statements and actions in
which they agreed to abide by Nissan's ownership limits and their obligation
to comply with Nissan's ownership policies.  This decision does not affect
Nissan's policies, the contractual obligations in its dealer agreements or its
ability to enforce them, as the court acknowledged.  Nissan will continue to
enforce our ownership and other  policies and our right to manage our
distribution system, which includes performance, brand, exclusivity and
service as well as ownership.
    "Nissan will continue to hold  dealerships owned by Republic to the terms
of their agreements with Nissan.  We expect Republic-owned dealerships to
abide by Nissan's policies that apply to all dealers, including ownership
limits.  One of Nissan's major concerns with Republic and the dealerships it
currently owns is many of those dealerships have experienced declining sales
performance under Republic's ownership."