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Olds Accelerates IRL Development

11 July 2000

GM Racing to Release Updated Technology as Competition Intensifies in
Indy Racing League

DETROIT - A victory by Nissan driver Eddie Cheever Jr. at Pikes
Peak International Raceway on June 18 marked the end of Oldsmobile's
34-race, 42-month winning streak in Indy Racing League competition. It also
heralded the next step in the escalating competition between engine
manufacturers in the open-wheel series. Now GM Racing is raising the ante
with the impending release of enhanced hardware and software for
Oldsmobile's IRL Aurora V8 racing engine.

    Cheever, a three-time winner with Oldsmobile's IRL Aurora V8 engine,
ended the longest active winning streak in a major American motorsports
series when he took the checkered flag under caution at the Radisson Indy
200, scoring the first IRL victory for Nissan's Infiniti Indy engine.

    Scott Sharp's victory in the preceding round in Fort Worth,
Texas, clinched Oldsmobile's fourth consecutive IRL Engine
Manufacturers Championship. As the competition between engine suppliers
intensifies in the IRL series, GM Racing engineers are continuing to
develop new components and technical enhancements for the IRL Aurora V8.

    "We congratulate Nissan on its first IRL victory," said Joe Negri,
GM Racing IRL/Road Racing Group manager. "Frank Honsowetz and his
associates have worked diligently to achieve success in open-wheel racing,
and their effort was rewarded. Team Cheever's record shows the depth of
talent in that organization, and we knew that it was only a matter of time
until Nissan would win a race.

    "Cheever's victory was the end of Oldsmobile's winning streak, but not
the end of the world," Negri noted. "Oldsmobile engines remain the
overwhelming choice of IRL teams, and Oldsmobile has already clinched its
fourth consecutive IRL Engine Manufacturers Championship.

    "GM Racing has developed improvements for the IRL Aurora V8 engine
and literally put that technology on the shelf until it was needed,"
Negri revealed, "In the face of increasing competition, now it is needed.

    "GM Racing is committed to continuously improving the IRL Aurora
V8 package. Working with our affiliated engine builders and suppliers, we
have developed significant enhancements for the 3.5-liter engine package
that was introduced in January.

    "Recognizing that Oldsmobile enjoyed a competitive advantage in the
series and that IRL teams had substantial investments in existing
inventories of Oldsmobile engines and parts, GM Racing believed it was in
the best interest of the series to delay the release of updated components
and technology. Now as the level of competition has escalated and IRL teams
are looking ahead to next season, the time is right to release these
advancements.

    "As in the past, GM Racing has thoroughly tested and validated the
new hardware and software to ensure that they meet our durability
standards," Negri noted. "Looking ahead, we recognize that within the
limits of the IRL rules, engines from various manufacturers will eventually
achieve similar performance levels on the track. GM Racing believes that
providing exceptional service and technical support to teams and engine
builders will continue to be the keystone of our success.

    "The focus of Oldsmobile's IRL program is on the Indianapolis 500,
an event that emphasizes high-rpm power and reliability," Negri explained.
"The engine specification developed by GM Racing for the unique demands of
a 2.5-mile speedway has also performed well on the 1.5-mile ovals that host
the majority of IRL events. The new components and calibrations we are
releasing are designed to improve performance on short 1-mile tracks while
maintaining the IRL Aurora V8's superiority on superspeedways."

    Oldsmobile engines have dominated IRL competition since the
series introduced its naturally aspirated engine formula in January 1997.
Oldsmobile engines have started on the pole in 35 straight IRL events and
have won every driver, team, and rookie championship in the last three
years. GM Racing has produced more than 700 IRL Aurora V8 engine kits, and
Oldsmobile motors have been used by 94 percent of the starters in 2000.

    "When Oldsmobile came into the IRL series as an engine supplier, GM
Racing anticipated that we would supply approximately half the field,"
Negri noted. "We expected to win our fair share of races based on how well
we implemented and executed our program, just as we do in the other racing
series around the world in which GM vehicles and engines compete. To win 34
consecutive IRL events, including four straight Indianapolis 500 races,
truly exceeded our expectations.

    "Certainly more intense competition between manufacturers will
increase interest in the Indy Racing Northern Light Series, just as fans
follow the rivalries among drivers and teams," Negri concluded. "We know
that you can't win 'em all - but that won't stop us from trying!"