GPWC (Grand Prix World Championship)

SHAREHOLDERS OF GPWC

BMW

Daimler Chrysler (Mercedes)

Fiat (Ferrari)

Ford (Jaguar) - Jaguar Racing has withdrawn from F1 and sold its assets to Red Bull in Nov 2004

Renault

Other manufcaturers in F1 (Toyota, Honda) are currently not part of GPWC

Chairman of GPWC: Jürgen Hubbert (ex. Mercedes-Benz)

NEW NAME

APR 7, 2005

GPWC has been renamed as "Grand Prix Racing"

Burkhard Goschel (Chairman): "Today's meeting was another very positive step forward .... it was characterised by a complete consensus among all members to develop their plans for Grand Prix Racing after 2007. We have also set out a specific timetable to deliver our completed vision later this year"

REVENUE DISTRIBUTION

GPWC are unhappy with their share of F1 revenue distributed by Bernie Ecclestone:

43% MANUFACTURERS

53% ECCLESTONE/FIA (75% TV (Kirsch - now bankrupt) 25% Ecclestone)

JAN, 19, 2005: FERRARI SIDES WITH ECCLESTONE

Ferrari endorsed the extension of the current Concorde Agreement by signing a unilateral agreement with Ecclestone to last until 2012:

FERRARI: "Following the announcement made on 19th January, concerning the renewal of the Concorde Agreement between Ferrari, FOM and FIA, Ferrari wishes to make the following statement: Back in the end of July 2004, Ferrari had informed in writing the other members of the GPWC that, as from 1st August of that same year, it would not be bound exclusively to the GPWC, while nevertheless remaining part of it. It intended examining the possibility of an agreement with the FIA and FOM regarding the long term future of the FIA Formula 1 World Championship.As a result of what was established in the agreement announced on the 19th of this month, the new version of the Concorde Agreement will come into effect from 2005 on the revenues owed to the signatories thereof."

JAN, 26, 2005: TOYOTA & HONDA SUPPORTS GPWC

Members of GPWS (except Ferrari/Fiat) have gained support from the other car makers in F1 - Toyota and Honda. Ferrari is the only defector to Ecclestone camp by extending the existing commercial arrangement (Concorde Agrrement).

GPWS plans to present their alternate plans to all F1 teams by the first GP in March (2005 Australian GP).

GPWS (Jürgen Hubbert): "... I'm confident that the presentation (to teams) will clearly demonstrate that together we can create an environment of fairness for our sport different to that which appears to result from Ferrari's unilateral decision to enter to a private agreement with the commercial rights holder and FIA ..."

GPWS: "... All participants have unanimously agreed upon a comprehensive set of governing principles which they believe represent an appropriate framework for the sport (F1)" Their main objectives are: To keep Grand Prix motor racing at the pinnacle of motorsport; To provide the basis of a long-term plan for the prosperity of Grand Prix motor racing and its stakeholders; To support and encourage the participation of independent teams through technical assistance and engine supply; To attract and excite and provide good value to fans; To be open, transparent and fair in commercial, technical and sporting governance.

FEB 1, 2005: NO COMPROMISE ON GPWS OBJECTIVES

RENAULT (Renault F1 president, Patrick Faure):"Last week we signed a document with Toyota, Honda, Mercedes and BMW which details what we want the Formula One championship to be after 2008. We've said a lot of things on the technical side that we want Formula One to remain the pinnacle of the sport. We've said things on the commercial side that we want the teams to be given much more money. And we've said things on how Formula One must be governed. Now we're going to discuss with all the parties involved and see how we can reach those objectives because in no way are we willing to compromise on them."

GPWC OBJECTIVES FOR F1:

To retain Grand Prix Motor Racing's position at the pinnacle of motorsport;

To provide the basis of a long term plan for the prosperity of Grand Prix Motor Racing and all its stakeholders, including teams, sponsors, and circuits;

To support and encourage the participation of independent teams through technical assistance and engine supply;

To attract, excite and provide good value to fans globally;

Is open, transparent and fair in commercial, technical and sporting governance.

Technical Format

Rule stability to encourage innovation, cost control and economic certainty.

To maintain Grand Prix Motor Racing as the most advanced motor racing formula.

Sufficient opportunity and technical freedom for teams, engine manufacturers and suppliers to use the sport to showcase their technology through differentiation and innovation and to challenge their engineering skills.

To eliminate high cost technologies which do not provide differentiation or have relevance to other industrial sectors.

To provide a safe environment for drivers, spectators, team personnel and race officials.

To reduce costs in a structured and well planned manner that does not surprise the teams or result in unforeseen consequential costs.

To evaluate cost cutting proposals in the wider context of the sport's appeal to its fans and balancing them with the requirements of the technical challenge.

To achieve fastest lap times on any grand prix motor racing circuits.

To include technologies relevant to current and future mainstream road cars.

Driver skills should remain a differentiating factor.

Sporting Framework

To entertain, excite and attract spectators, viewers and sponsors.

To attract the best available drivers, circuits and team personnel in the world.

To maintain perception of sporting "purity" with no artificial handicapping.

To ensure results are instantaneous and available immediately.

To reward good teamwork.

Commercial and Sporting Governance

To provide substantive fairness for all competitors and other stakeholders in respect of all aspects of the sport including sporting, technical and commercial matters.

To ensure transparent governance and financial structure for the sport.

To maintain a professional management team with clear succession plans.

To have a fair and open system for rule determination that only allows changes to be made against objectively defined criteria.

To have a readily accessible and swift appeals process administered by an internationally recognised independent body.

To provide a significantly greater and more equitable share of the total revenue generated by the sport to the participating teams.

To ensure that all revenue related to the sport including circuit signage, race title sponsorship and fees for hosting Grands Prix are included in the division of funds.

To expand the overall revenue coming into the sport through optimum exploitation of the various commercial rights.

To ensure that all stakeholders deal with each other and conduct themselves with mutual respect and do not act to the detriment of the interests of the sport.

To ensure access to the sport on free to air TV on a worldwide basis in order to reach the broadest possible audience.

To provide better television coverage for the viewers and improve and expand the media technologies through which the sport is made available.

To significantly improve the quality of the live TV feed.

To expand the sport into new markets through increased TV coverage and different Grand Prix venues.