Budget Rent a Car Wins Legal Battle Against Sixt
16 April 1999
Budget Rent a Car Wins Legal Battle Against SixtLISLE, Ill., April 15 -- The Munich Regional Court of Appeal today held that Budget Rent a Car International, Inc. had validly terminated its license agreement with Sixt GmbH & Co. Autovermietung KG, effective as of May 1997. Budget's termination was based on Sixt's violation of its obligations under the franchise agreement. As a result, Sixt has been operating its car rental business under the Budget trademark without authority for the past two years and will be required to pay damages to Budget for such illegal conduct. Additionally, Sixt will be responsible for Budget's legal costs and for damages resulting from Sixt's failure to transmit reservations generated in Germany to Budget locations throughout Europe. "We are very pleased with the outcome of this long-running legal dispute. This ruling represents a legal victory for Budget. We are pursuing our own business interests in Germany and have already established our key management team," stated Sandy Miller, chairman and CEO, Budget Group, Inc. "Budget is committed to building a strong presence in Germany, beginning with major airports, cities and railway stations. In the long-term, I firmly believe that we will make a significant impact in the German car rental market." Budget's plan is to have a balanced mix of corporate and licensee locations throughout the country. Already, Budget has several candidates who have expressed an interest in establishing franchises in Germany. Statements made in this press release that are not historical in nature may include 'forward-looking statements' within the meaning of the federal securities laws. It is important to note that these statements involve a number of risks, uncertainties and other factors that could cause Budget Group, Inc.'s actual results to differ materially from those projected in such forward-looking statements. Additional information concerning such matters is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 1998, and other documents subsequently filed by the Company with the SEC, all of which are available from the SEC. Budget Rent a Car, a wholly owned subsidiary of Budget Group, Inc. , is one of the world's top three car and truck rental systems. The Budget system, which operates under the same name worldwide, has more than 3,200 airport and local market locations in over 120 countries and territories. Budget has nearly 1,200 corporate-owned and franchised locations throughout the Europe, Middle East and Africa region. Around the world, Budget differentiates itself in the industry through its "out of the ordinary" products and services.