CART reports first quarter losses

"The increase in expenses highlights our commitment to invest in our most valuable asset - our teams," stated CFO Thomas Carter. "This commitment helps to ensure we have a sufficient number of viable teams competing in our series for 2003."

CART conducted two events in the first quarter of 2003, against one in the first quarter of 2002. Its race participation payments have been increased from the prior year's amount of $10,000 per race, per entrant to $20,000 in 2003. In 2003, the company began making entrant support payments to participating teams as part of a financial incentive plan. These payments are $22,500 per race, per entrant, and amounted to $8m in the first quarter.

Other factors have been a change in CART's TV arrangements and the acquisition in March 2003 of 100 percent of the equity in Raceworks, the Miami street race promoter, at a cost of $1.2m.

"We continue to face challenges on many fronts, especially in the face of a weak economy and global events," added CEO Chris Pook. "However, we have strengthened our sales efforts and continue to make strides in promoting CART's advantages as a powerful marketing tool for multi-national companies interested in exploiting the global marketplace."