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EXHIBIT 99.1
REYNOLDS AND REYNOLDS ENDS NEGOTIATIONS WITH GENERAL MOTORS ON EQUITY
ARRANGEMENT
DAYTON, OHIO, NOVEMBER 15, 2000 - The Reynolds and Reynolds Company (NYSE: REY)
announced today it has ended negotiations with General Motors Corporation (NYSE:
GM) 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.
Reynolds and Reynolds headquartered in Dayton, Ohio, is the leading provider of
integrated information management solutions to the automotive retailing
marketplace. The company's services include a full range of retail and
enterprise management systems, networking and support, e-business applications,
Web services, learning and consulting services, customer relationship management
solutions and leasing services.
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Certain statements in this news release constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. The
forward-looking statements are based on current expectations, estimates,
forecasts and projections of future company or industry performance based on
management's judgment, beliefs, current trends and market conditions.
Forward-looking statements made or to be made by or on behalf of the company may
be identified by the use of words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates" and similar expressions.
Forward-looking statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions that are difficult to predict.
Actual outcomes and results may differ materially from what is expressed,
forecasted or implied in the forward-looking statements. See also the discussion
of factors that may affect future results contained in the company's Current
Report on Form 8-K filed with the SEC on August 11, 2000, which we incorporate
herein by reference. The company undertakes no obligation to update any
forward-looking statements, whether as a result of new information, future
events or otherwise.
CONTACTS:
Investors Media
Mitch Haws Paul Guthrie
937.485.4460 937.485.4216
[email protected] [email protected]
