In February 2008, the National Association of Speedway Racing Inc and National Association of Speedway Racing Pty Ltd (together "NASR"), as well as certain other entities and organisations involved in Australian speedway racing, lodged various exclusive dealing notifications with the Australian Competition and Consumer Commission ("ACCC"). These notifications were lodged as part of NASR's ongoing efforts to improve the sport of speedway racing across all levels, and with a genuine belief that the proposed conduct is in the public interest.

The notification process was referred for public consultation by the ACCC, and over 40 submissions were lodged in respect of the different notifications. The ACCC has now issued a draft Notice in relation to the notifications.

Whilst the notification process is still not complete and the ACCC is yet to make any final determinations, NASR is pleased to announce the following preliminary outcomes:

· The ACCC has at this stage accepted the proposed requirement that NASR licence holders only participate or compete in speedway racing categories approved by NASR. NASR currently recognises approximately 110 different speedway racing categories in Australia, in which licensed speedway racing drivers can compete. All of these recognized categories comply with the minimum safety requirements outlined in NASR's risk management policies. Requiring that NASR licence holders only compete in NASR-approved categories ensures uniformity of safety standards across the sport of speedway racing and assists with NASR's overall risk management procedures. NASR will approve new categories of speedway racing provided that they meet certain objective criteria.

· The ACCC has at this stage accepted Perth Motorplex and Avalon Raceway's proposed requirement that only NASR licence holders may access track and pit facilities at their venues. Speedway racing drivers, officials, crews, mechanics, sponsors, family members and spectators all benefit greatly from compliance with the minimum safety requirements imposed by NASR. NASR provides standardised rules for the entire sport of speedway racing throughout Australia, and also provides personal accident insurance cover as a member benefit to its licence holders. Perth Motorplex and Avalon Raceway recognise the public benefits that will arise if they stipulate that only NASR licence holders may access track and pit facilities at their venues. This will aid in improving the operation and safety of speedway racing in Australia.

· The ACCC has at this stage indicated there are positive reasons to require that NASR licence holders also obtain membership of the relevant speedway racing category clubs and associations, such as the SCCA, ASCF and DMA. The ACCC has at this stage also indicated there are positive reasons to require that members of speedway racing category clubs and associations, such as the SCCA, ASCF and DMA, also obtain NASR licences. The ACCC has indicated there is a benefit in ensuring car safety standards and specifications are met and the requirement that drivers obtain membership in a relevant organisation is a means of ensuring this. This will help to develop stronger ties between NASR and the various categories recognised by NASR and also improve and strengthen those categories. This in turn will lead to a higher quality of competition overall, along with increased levels of safety, and better organisation at both a national level and within each category. Membership would also ensure that participants are properly represented within the sport of speedway racing and within their specific category, through participation in their category's representative body. NASR intends to continue discussions with the ACCC in relation to this requirement.

The ACCC has at this stage indicated that it may not accept the proposed requirement that NASR licence holders and members of the SCCA, ASCF and DMA participate only in events held at NASR approved or sanctioned tracks and venues. NASR confirms that the purpose of the proposed conduct is to ensure that all tracks and venues, at which NASR licence holders and members of the SCCA, ASCF and DMA participate, comply with appropriate safety standards and have appropriate levels of public liability insurance. This proposed conduct has not yet been conclusively rejected by the ACCC, and NASR may make further submissions to the ACCC in relation to this issue.

As the internationally recognised controlling body of speedway racing in Australia, NASR considers that it is its responsibility to ensure that the tracks and venues at which speedway racing is conducted, are approved by reference to an objective and nationwide set of criteria, and held to appropriate levels of maintenance and safety. NASR confirms that regardless of the outcome of the current notification process, an alternate option will be the implementation nationwide of objective safety criteria for tracks and venues, which can operate independently of any system of NASR approval.

Overall, NASR is pleased with the interim outcome of the notification process. NASR considers that this represents a positive and historic step in the development of the sport of speedway racing in Australia, by empowering NASR and key stakeholders to continue to implement strong safety and risk management standards and policies.