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FOR: |
International Speedway
Corporation |
APPROVED BY: |
Wes Harris |
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Senior Director, Investor
Relations |
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(386) 947-6465 |
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FOR IMMEDIATE RELEASE |
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INTERNATIONAL SPEEDWAY EXTENDS LEASE
AGREEMENT
FOR DAYTONA INTERNATIONAL SPEEDWAY
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DAYTONA BEACH, Fla. - March 29, 2006 - International
Speedway Corporation (NASDAQ/NM: ISCA; OTC Bulletin Board: ISCB) ("ISC") today announced that, through its
wholly-owned subsidiary Daytona International Speedway, LLC ("Daytona"), it
has amended its lease agreement with the Daytona Beach Racing and
Recreational Facilities District (the "District"). The amended lease (the "DIS
lease") extends the relationship between Daytona and the District through
November 7, 2054.
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The
annual cash lease payment, excluding applicable sales taxes, of $500,000 for 2007
will increase every five years, resulting in an average annual cash payment
over the 48-year (2007-2054) period of approximately $750,000. The original
lease provided for annual cash payments of $10,000 per year through 2007,
increasing to $20,000 per year from 2008 through 2032.
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Accounting
principles generally accepted in the United States require annual lease
expense to be recognized on a straight-line basis over the revised term of
the lease. As a result, ISC expects to record approximately $500,000 in
additional DIS lease-related expenses for fiscal 2006, including sales taxes.
For fiscal years 2007 through 2054, the Company anticipates DIS lease-related
expenses, including sales taxes, to approximate $800,000 per year.
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"The successful lease extension
further demonstrates the significant, long-term commitment of ISC and my
family to the Daytona Beach community," said ISC President Lesa France Kennedy. "My grandparents signed the initial
lease in 1957, which helped create the World Center of Racing and NASCAR's
preeminent event - the Daytona 500. The extension is a win-win for all
involved, as it enables our continued investment in the area and provides an
increased source of funds for the District to utilize for worthy community
projects."
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International Speedway Corporation
is a leading promoter of motorsports activities in
the United States, currently promoting more than 100 racing events annually
as well as numerous other motorsports-related
activities. The Company owns and/or operates 11 of the nation's major motorsports entertainment facilities, including Daytona
International Speedway in Florida (home of the Daytona 500); Talladega Superspeedway in Alabama; Michigan International Speedway
located outside Detroit; Richmond International Raceway in Virginia;
California Speedway near Los Angeles; Kansas Speedway in Kansas City, Kansas;
Phoenix International Raceway in Arizona; Homestead-Miami Speedway in
Florida; Martinsville Speedway in Virginia; Darlington Raceway in South
Carolina; and Watkins Glen International in New York. Other motorsports entertainment facility ownership includes an
indirect 37.5 percent interest in Raceway Associates, LLC, which owns and
operates Chicagoland Speedway and Route 66 Raceway
near Chicago, Illinois. |
The
Company also owns and operates MRN Radio, the nation's largest independent
sports radio network; DAYTONA USA, the "Ultimate Motorsports Attraction" in Daytona Beach, Florida, the official attraction of NASCAR; and
subsidiaries which provide catering services, food and beverage concessions,
and produce and market motorsports-related
merchandise under the trade name "Americrown." In
addition, the Company has an indirect 50 percent interest in a business
called Motorsports Authentics,
which markets and distributes motorsports-related
merchandise licensed by certain competitors in NASCAR racing. For more
information, visit the Company's Web site at www.iscmotorsports.com.
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Statements made in this release that express the
Company's or management's beliefs or expectations and which are not
historical facts or which are applied prospectively are forward-looking
statements. It is important to note that the Company's actual results could
differ materially from those contained in or implied by such forward-looking
statements. The Company's results could be impacted by risk factors,
including, but not limited to, weather surrounding racing events, government
regulations, economic conditions, consumer and corporate spending, military
actions, air travel and national or local catastrophic events. Additional
information concerning factors that could cause actual results to differ
materially from those in the forward-looking statements is contained from
time to time in the Company's SEC filings including, but not limited to, the
10-K and subsequent 10-Qs. Copies of those filings are available from the
Company and the SEC. The Company undertakes no obligation to release publicly
any revisions to these forward-looking statements that may be needed to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. The inclusion of any statement in this
release does not constitute an admission by International Speedway or any
other person that the events or circumstances described in such statement are
material.
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