Proton's Clarification On The Purchase Of "lotus" Brand By

There is and always has been only one

Lotus, the Lotus started by Colin Chapman. From the beginning Lotus made

road cars and raced racing cars. Until 1994, Group Lotus, the road car

manufacturer and Team Lotus, which operated the Formula 1 team, were in

common ownership with common directors. In 1994, Team Lotus failed and

Lotus has not raced since. Since 1994, David Hunt has claimed to have

acquired assets of Team Lotus, including its name, from the liquidator.

He has never raced as Lotus. Mr. Hunt's attempt to acquire the name Team

Lotus was ineffective. Group Lotus is the owner of all rights in the

"Lotus" automotive brand including those relating to Formula 1.

Last year, Tony Fernandes and 1 Malaysia Racing Team recognised this by

taking a licence from Group Lotus to use the "Lotus" brand for the

"Lotus Racing" team in the current Formula 1 season. With PROTON's

agreement, Group Lotus has now terminated its licence to 1 Malaysia

Racing Team to use the "Lotus Racing" brand in the 2011 and future

Formula 1 seasons as a result of the flagrant and persistent breaches of

the licence by 1 Malaysia Racing Team, which were damaging to the

"Lotus" brand.

Following that termination, neither 1 Malaysia Racing Team, nor any

other company associated with Mr. Fernandes such as Tune Group Sdn Bhd

or Team Lotus Ventures Limited, has the authority of Group Lotus to use

any "Lotus" brand in the 2011 Formula 1 season. This includes the use of

the brand "Team Lotus".

Group Lotus understands that Mr. Fernandes intends to rebrand the

current "Lotus Racing" Formula 1 team to "Team Lotus" for the 2011

Formula 1 season. Mr. Fernandes indicates that Tune Group has acquired

the rights to the name "Team Lotus" from a business formerly owned by

David Hunt called Team Lotus Ventures Limited. Group Lotus believes

these rights to have no proper legal foundation, a fact of which Mr.

Fernandes was well aware when his company purchased them.

PROTON will support Group Lotus in taking all necessary steps to protect

its rights in the "Lotus" name, including resisting any attempts by Mr.

Fernandes or his companies, or any other unauthorised person, to use the

"Lotus" name in the 2011 Formula 1 season.

Dato' Sri Mohd. Nadzmi Mohd. Salleh, Chairman of PROTON Holdings Berhad

and Group Lotus commented, "We believe the Lotus brand to be one of the

most valuable brands in Formula 1 today. We are the owners of this

brand, and will take all necessary steps to protect it. Tony Fernandes

has no rights to use the Lotus brand in the 2011 Formula 1 season, and

we will strongly resist any attempts by him to use our brand without our

permission and will withdraw our sponsorship of the Lotus Racing team."

"To put it simply, Group Lotus is everything Lotus. The fact that 1

Malaysia Racing Team entered into an agreement with Group Lotus to use

the brand means that both Mr. Fernandes and 1 Malaysia Racing Team

recognises and acknowledges Group Lotus' rights," he added.