FOOL CONFERENCE CALL SYNOPSIS*
By Debora Tidwell (MF Debit)

Speedway Motorsports, Inc.
P.O. Box 600
Concord, NC 26026-0600
(704) 455-3239
http://www.raceshop.com/

UNION CITY, Ca., October 13, 1996/FOOLWIRE/ --- Speedway Motorsports reported their third quarter results this morning. They announced earnings per share of $0.02, meeting consensus estimates.

The third quarter at Speedway Motorsports is usually pretty flat. Last year they had an operating loss of $3.1 million. This year they have very good news thanks to their acquisition at Bristol and the fact that they had a major Winston Cup race weekend at Bristol it affected their third quarter very positively.

The company was concerned about making an earnings release on Thursday and being able to have it properly carried by all the media channels because of the heavy demand for releases on that particular day of the week and, unfortunately, they have to finalize their Form S3 with the SEC tomorrow, they cannot give a full release of their third quarter prior to that time or else the numbers in the S3 will not be proper, they'll go stale. They apologize that there is somewhat of a left-handed conference today, but they would like to emphasize that their revenues were record in the third quarter, up more than 230% and the quality of their earnings was excellent with an operating earning increase of more than $3.5 million.

They have embarked upon a growth plan at Bristol and their other speedways in response to the demand for tickets that is unprecedented. They will increase the seating at Bristol from the 70,000 level when they acquired it in January, hopefully to 130,000 by August, which they believe is the largest addition at least in the motor sports industry. Next year they will open up the Texas Motor Speedway which should be the largest speedway in terms of numbers of seats that was ever opened at one time. At both Charlotte and Atlanta they intend to have gross seat additions of approximately 25,000 at each location.

QUESTIONS AND ANSWERS

WHAT IS THE STATUS OF THE BRISTOL EXPANSION? They have progressed quite a ways and they believe that the 130,000 seats are possible and they are currently under construction with those plans. They hope to have approximately 90,000 seats ready for the race in April. With regard to covering the speedway, that is an interesting technical exercise that they have asked three different companies that are in the business of providing coverings to study and make recommendations if this would be something that is technically feasible in a cost-efficient manner. The technology is there to do it, the price has got to come down for them to look at it. Just like Charlotte was the first super speedway to be lit and everyone said it couldn't be done, maybe covering Bristol could be done too. Reducing the weather risk means a lot. Bristol would be the best place to try it because it's only 1/2 mile rather than 1.5 miles, so they are going to keep working on it.

UPDATE ON RACE DATES? They are about 85% complete on construction at Texas right now. They are way ahead of schedule as far as the first weekend in April the Winston Cup race there. They are continuing to talk to NASCAR about a second date in 1997. They obviously are going to have to come to some decisions in the next six weeks or earlier as far as that second date is concerned.

EXPANSION INTO THE MIDWEST MARKET? As far as the Midwest, the Midwest has always been a hotbed of racing, obviously centered around the Indianapolis Motor Speedway and its events and Speedway Motorsports was pretty astonished when they sold as many tickets (a million ticket orders) for the Brickyard 400 (the NASCAR race) in August the first year they had it and they had a sellout now behind them. Speedway Motorsports has been looking at that quad cities area (Davenport Iowa, Moline Illinois, etc.). They have entered into a consulting agreement with the folks up there and have an option to purchase stock in that speedway. That is moving along. They looked at the DuPage area and felt that the cost of the land was out of proportion to what they need for a track. They have to get these tracks at a low cost and you need at least 500 acres, so there are big land costs up front. The Midwest is a great market, they are going to continue to work with the folks at quad cities and see what happens.

ACQUIRING SEARS POINT RACEWAY? The company doesn't have any comment right now. As they have said over and over again, they are always on the outlook for a good acquisition that they could buy that would be accretive to earnings, but at this time they can't say anything about it.

UPDATE ON SALES AT TEXAS? They believe that the sales are progressing nicely. The anticipated initial period of sellout would be through the middle of January. In all likelihood, being realistic, it will take some period of time beyond that before the program is fully implemented. They don't know exactly how long, but they suspect a period that would extend beyond the first race because most of the programs have worked that way. They think the $40 million is still reasonable but it is a forecast and they would rather say that it is more of the potential.

WHERE DOES THE SPORTS AUTHORITY FINANCING STAND? They have continued to work with The Sports Authority in Texas. The independent school district did file a suit against the governor and most of the government officials which stopped a formal financing issued by The Sports Authority, but they still believe there is a type of financing structure they can do that will be mutually advantageous.

HOW DID THE FOURTH QUARTER RACES TO-DATE GO? The races at Charlotte were great. They almost had a sellout which is a challenge to them in October every year. They had a good Saturday 300 Busch Race and the Winston Cup race. There was a lot of drama they had to work with in Atlanta with the point race and the fact that Jeff Gordon, Terry Labonte, and Dale Jarrett were all headed there for a real showdown. They had, for all practical purposes, a sellout in Atlanta. They had some great weather on Sunday and it was the best race they have had in Atlanta since they purchased it. It has to go down as one of the four best races of the season because of the drama, particularly the way it ended. That has a bearing on how you sell tickets to the next race. A lot of people say that racing is easy because the team never loses. Well their version of that is having dull, boring races and when you have that, selling tickets to the next one at that particular track is tough. So, it was a great race and the fact that the two Labonte brothers from Texas won the race and won the championship together was a first in the sport. So, a tremendous amount of attention and publicity came to the speedway and their sponsors because of the way the Winston Cup championship ended up. They have again experienced an unprecedented streak of inclement weather and both events at Charlotte and Atlanta were affected adversely by inclement weather. However, they did achieve record revenues for both events. They are comfortable with current analyst estimates for the fourth quarter.

UPDATES REGARDING LEGENDS? Toward the middle of the year, sales started to flatten out somewhat with Legends, but they think that had more to do with their dealer network than anything else and the fact that they have saturated certain markets. There are 56 Legends cars on Long Island and only one track, so obviously they pretty much have the market there. But there are a lot of markets they can open up. Sales have picked up substantially in the last 6 weeks and they are going to bring Legends in at a fair increase over what they did last year. They just signed a major distributor for Southeast Asia and they are racing in mainland China, Thailand, South Korea, and Borneo. Their parts business is doing super and they are still working on the second car, the Bandolero. They have another 6 weeks of testing they have to do with it and hope to bring it out to market sometime in the Spring. They think the price of the Bandoleros will be somewhere around $6995 and will be a good profit producer for them. It is smaller than the Legends cars. It is aimed at both the juvenile 12-17 year old market, which is growing very rapidly, plus an adult market that can't afford nearly $12,000 Legends car costs.

DATE FOR QUAD CITIES CONSTRUCTION? They don't have one yet.

STATUS OF HAVING THE 5.75% CONVERTIBLES RATED? They hope to be meeting with a rating agency this week (Fitch).

STATUS OF ADDITIONS TO CHARLOTTE AND ATLANTA? They have a very short time between now and March and it is very wet down there. They are not going to start the seat additions in Atlanta until the March race is off. As far as Charlotte, they had started construction of the seats and they are going to add 26,000 seats and those will be done by May 17th for the Winston Select race. That is going to net out to 16,000-18,000 because they have torn down some existing seats. Atlanta's net is going to be around 7,500 and that will click in for the November Winston Cup championship race.

COCA-COLA SPONSORING THE BUSCH RACE AT TEXAS? The Busch circuit is so strong that they are seeing a lot of top sponsors coming in. What they are finding out down in Texas is that they can sell their sponsorships, their TV, for considerably more than they can at Charlotte and Atlanta. It all has to do with market. It is just such a tremendous market down there. The aggressiveness of the beverage companies in markets like Dallas/Ft. Worth is just unheralded. Ten years ago that wouldn't have happened. But they are all looking for position in the market so that is why they are jumping on high profile things like the speedway, the Dallas Cowboys, etc. That helps Charlotte and Atlanta also becaus they get big sponsor dollars coming in at one facility, even though Atlanta and Charlotte are less markets, it does help get the numbers up. They should be announcing a sponsor for the Winston Cup race in the next 3-4 weeks. They have several companies that are also very close on the Atlanta race in March next year.

ENVIRONMENT NOW? This business has absolutely exploded and is exploding as they speak. They thought long and hard before they went public and it has turned out to be a good decision. And that has brought a lot of other people into it. They did not think that ISC would go public, but they are glad. ISC is a well-managed operation. They just got through negotiating a record TV package which will help them down the road. They probably will not be as aggressive in building new facilities. They think there is plenty of room for all the players out there. They think the schedule can be expanded. They continue to see the new economy coming aboard for tracks and it is going to be tough to make money in the business 5 years from now if you are not part of a group of tracks. It's just the way the business is going. Standing alone, you lose all your leverage with TV purchasing, etc.

* A Fool conference call synopsis represents an effort to highlight the salient points of a conference call and should not be taken as an authoritative accounting or transcription of the entire event. Note: Statements made by a company other than historical information may constitute forward-looking statements for which the company can claim protection under the Safe Harbor Act. Please consult the company's filings with the SEC for information on risk factors which might cause actual results to differ materially from the information contained in these forward-looking statements.