Speedway Motorsports Announces Resolution of FTC Vs. Oil-Chem Investigation


CONCORD, NC (March 20, 2003) - Oil-Chem Research Corp. (Oil-Chem) and Speedway Motorsports, Inc. (SMI) announced today a resolution to their dispute with the Federal Trade Commission (FTC) concerning the advertising of zMAX Power System.
"We at Speedway Motorsports are very pleased that the staff of the Federal Trade Commission has specifically confirmed that Oil-Chem can continue to make the following claims in its advertising and promotion of zMAX,” stated Marylaurel E. Wilks, vice president and general counsel of SMI.

  • zMAX soaks into metal,
  • zMAX reduces friction,
  • zMAX increases horsepower,
  • zMAX dissipates engine heat,
  • zMAX helps to improve or restore gas mileage and reduce emissions in older cars, by virtue of reducing engine deposits,
  • zMAX helps to maintain gas mileage and emissions in newer cars, by virtue of reducing engine deposits,
  • zMAX helps to reduce engine wear on engine valve-stems and guides and piston rings and skirts, by virtue of reducing engine deposits,BR> · zMAX helps to extend engine life, by virtue of reducing engine deposits.

This confirmation is specified in an exchange of letters with the Division of Enforcement of the FTC. Oil-Chem's letter lists the tests and other documents that substantiate the zMAX claims (provided by Oil-Chem to the FTC during the litigation), and the FTC responded that no compliance action would be merited as a result of Oil-Chem making such claims. Oil-Chem and SMI have not admitted any liability in this litigation. However, in order to avoid the significant expense and time involved in the litigation, the FTC, Oil-Chem and SMI have agreed to end the litigation by the signing of an order, which, in summary, states: (a) Oil-Chem and SMI do not admit any liability and continue to deny any liability; (b) The FTC has issued its compliance letter (which confirms that enforcement is not merited for the eight specified claims); (c) Oil-Chem and SMI will not make advertising claims which are not properly substantiated; and (d) Oil-Chem and SMI will offer a refund of up to $1 million, in the aggregate, to certain purchasers of zMAX, who bought zMAX before January 31, 2001. No refund will be offered to purchasers after that date. For more information visit zmax.com.

zMAX was developed in 1947 by Joe Lencki as Speedway Cocktail. Sold to the racing industry and car dealerships since it development, it has been marketed as zMAX since1998. AVBLEND, the zMAX formula for aviation, is FAA approved for all piston driven aircraft and has been available since 1980. In addition to company efforts to market zMAX through infomercials, zMAX is available at better auto parts stores including Advance Auto Parts, AutoZone, Checker, Kragen, Murray's Auto Parts, O'Reilly Auto Parts, PepBoys, Schuck's, Strauss Discount Auto, VIP as well as Target stores and BJ's Wholesale nationwide. zMAX became a part of Speedway Motorsports in 1996.

Speedway Motorsports is a leading marketer and promoter of motorsports entertainment in the United States. The Company owns and operates the following premiere facilities: Atlanta Motor Speedway, Bristol Motor Speedway, Infineon Raceway, Las Vegas Motor Speedway, Lowe's Motor Speedway and Texas Motor Speedway. The Company provides souvenir merchandising services through its SMI Properties subsidiary, and manufactures and distributes smaller-scale, modified racing cars through its 600 Racing subsidiary. The Company also owns Performance Racing Network which broadcasts syndicated motorsports programming to more than 725 stations nationwide including XM Satellite and NASCAR.com, and Oil-Chem Research Corp., the manufacturer and distributor of zMAX. For more information, visit the Company's website at gospeedway.com.