---

Reynolds and Reynolds Ends Negotiations With GM on Equity Arrangement

15 November 2000

Reynolds and Reynolds Ends Negotiations With General Motors on Equity Arrangement

    DAYTON, Ohio, Nov. 15 The Reynolds and Reynolds Company
announced today it has ended negotiations with General Motors
Corporation to reach a definitive agreement whereby Reynolds, in
exchange for 10 percent equity ownership by GM, would become GM's preferred
provider of retail management systems and exclusive provider for dealer
e-business technology. The two companies had been engaged in negotiations
since signing a Memorandum of Understanding on April 20, 2000.
    "We continue to believe in our vision for the future of automotive
retailing and the role of technology to create a seamless online and offline
experience for consumers," Lloyd 'Buzz' Waterhouse, Reynolds' CEO, said. "We
plan to execute our growth strategies that strengthen our leadership position
in this exciting marketplace."
    Waterhouse said Reynolds' near-term revenues will not be affected by the
termination. "Moreover, we'll avoid the significant dilution that would have
resulted from giving up 10 percent of our equity," he said.