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Republic Industries To Reprice Employee Stock Options

Oct. 19, 1998

Excludes Board Members, Chairman, Vice Chairman and President

FORT LAUDERDALE, Fla., Oct. 19 /PRNewswire/ -- Republic Industries, Inc. (NYSE: RII) announced today that its Board of Directors has approved the repricing of 32,110,000 employee stock options or less than seven percent of fully diluted shares outstanding. The options were repriced at $12.75, equal to Republic's closing price on October 16, 1998. No additional options will be issued as part of the repricing, and option holders will be precluded from exercising any of their repriced options prior to January 2, 2000. All other terms of the existing options, including the vesting schedules, remain unchanged. The company further stated that it intends to reduce the amount of future option grants.

Additionally, the company announced that it will not reprice the options previously granted to members of its Board of Directors, including those granted to its Chairman, H. Wayne Huizenga, President, Steven R. Berrard, and Vice Chairman, Harris W. Hudson.

"These options reach far into our organization, to thousands of employees. These employees -- representing not only senior management, but also our key field personnel, dealers and associates -- are the heart of the company," said Steven R. Berrard, President and Co-Chief Executive Officer of Republic Industries. "It is vital to the success of Republic Industries that these employees remain with the company, stay motivated and continue to achieve our long-term growth objectives. We believe this action is an important step in that direction."

"This decision will positively affect key contributors at various levels who are vital to the success of Republic Industries. These people are critical to the achievement of our business plan, and the enhancement of long- term shareholder value," Mr. Berrard added. "Attracting, retaining and motivating experienced, dedicated employees is, indisputably, a critical corporate objective. Given that a large proportion of our remuneration program consists of equity-based compensation, repricing the stock options will help ensure that our interests remain aligned with those of our shareholders."

Republic Industries, Inc. operates subsidiaries in the automotive retailing, automotive rental and solid waste industries. The company owns the nation's largest group of franchised automotive dealerships and operates the AutoNation USA used vehicle megastores chain. Republic also owns and operates National Car Rental Systems, Inc., Alamo Rent-A-Car, Inc. and CarTemps USA.

SOURCE Republic Industries, Inc.
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