MICHELIN CHAMPIONSHIP AT LAS VEGAS MEDIA CONFERENCE

September 8, 2004

Rob Ohno

John Sullivan

John Tully

JOHN SULLIVAN: On behalf of the Las Vegas Founders Club, we'd like to welcome you all here, a very special day for us. On behalf of our president, Gary Frey, the active organization in our over 1,000 volunteers, we want to introduce you to our new tournament, the Michelin Championship at Las Vegas. My name is John Sullivan and I am the current chair of the event. Now I want to introduce you to the Michigan man to on come out and show you our new logo. (Applause). As you all know, this has been a process over the last couple of years. Since we've been operating our current sponsorship with the City of Las Vegas, we are extremely pleased to add Michelin as our sponsor.

JOHN TULLY: Thank you, and good morning, Las Vegas -- (inaudible). We strategically focus on education, our environment, safety, and we provide mobility to our neighbors who are in need of health and human services. 'Working together, we can find a better way forward; which if you have not seen it yet, is our new tag line. I promise you, you'll be seeing it a lot. This tournament is a great opportunity for Michelin to support our many tires consumers who are also golf consumers. Golf performance orientation is a great fit with our large range of products ranging from small segue tires, who hopefully most of you have seen those personal transporters, as well as bicycle tires to very large earth-mover and space-shuttle tires. All of these tires are designed with the same theme in mind: A better way forward. Michelin is extremely pleased to be part of this tournament, to be able to support and sponsor the tournament and probably a little bit more importantly from my perspective as director of community relations, to be able to benefit the people who will benefit from this tournament in our Las Vegas. Thank you.

JOHN SULLIVAN: Thank you very much, John, and obviously for the City of Las Vegas and our organization and the PGA TOUR players that visit every year, adding Michelin is definitely a better way forward for all of us. Well, that's the new partnership we have. For the last 22 years, we have had an ongoing partnership with the PGA TOUR. Las Vegas has been an important part of the PGA TOUR way back through the Tournament of Champions to this year's Michelin Championship. We have proud to have Rob Ohno, vice president of business development for the PGA TOUR here to say a few words about this, as well. Rob?

ROB OHNO: Good morning, everyone. On behalf of the PGA TOUR including our players and Commissioner Finchem, it's my pleasure to represent the Tour for this exciting announcement. First I'd like to congratulate John Sullivan and Gary Frey on this great news, and also, I would like to congratulate John Tully from Michelin. Thank you for allowing us to be part of this wonderful day. A couple of things I just wanted to mention is from a TOUR perspective we really like to associate ourselves with premiere brands and companies and organizations that uphold strong principals and values, and we take a lot of pride in these associations. Michelin, from what you just heard from John and what I've known or gotten to know from them over the past several weeks and months certainly fits this mold. We have a lot of admiration for the Michelin brand and feel honored to be associated with them. The second thing is, what we like to do from a TOUR perspective is develop relationships that are like partnerships. We've certainly gotten to know Michelin over the last several weeks, quite well, as we've been working through details of the agreement. I personally have seen that Michelin and their staff conducts themselves in a spirit of partnership, and we have a lot of respect for this. We know this will be a great partnership for hopefully many years to come. And like virtually all other TOUR events, the Michelin Championship at Las Vegas will give back to the community through its charitable contributions. The TOUR is proud that its tournaments have contributed over $820 million to charity over the years, and this tournament is no exception. This tournament organization should be proud of what it's done for the Las Vegas area over the many years, and this city should be proud of this outstanding tournament. With Michelin's support we know that the impact on this community should continue to grow in a positive manner. And in closing, I just want to warmly welcome Michelin to the PGA TOUR family and congratulate them and the Las Vegas Founders Club on this wonderful announcement.

JOHN SULLIVAN: Thank you very much, Rob. We appreciate the relationship we've had for the last 22 years with the Tour and hope to survive at least another 22 doing the same with Michelin as a partner all the way along.

JOHN SULLIVAN: What we have signed is a one-year agreement with Michelin with an option for them to extend it the next two years beyond that. That's the current time frame of all of the TOUR agreements running through the 2006 season. Given the time frame this year of when everything came together, it's a one-year contract and the Michelin has a period after the tournament to extend that for two more years.

JOHN SULLIVAN: The total dollar amount on the last two years is not discussed.

JOHN SULLIVAN: The purse this year will be $4 million as it's been announced. No change to the purse structure. No change to the format.

JOHN SULLIVAN: There are a couple of formulas under that option that could create changes to the tournament, to the purse, to the whole bit. We will certainly, as soon as that's moving forward, have an announcement on that.

JOHN SULLIVAN: There's an agreement for the 2004 event, and then there's an option for the years '05 and '06. So one two-year option. But there's no change to the tournament based on this year. As we announced earlier in the year, we had a benefactor come on board, the Morton Family, provide us with some money, and then through cooperation with the PGA TOUR arrange for the guaranteed profitability of the tournament. This sponsorship for this year steps within that PGA TOUR relationship.

JOHN SULLIVAN: Actually Morton made a $5 million three-year donation and there is a certain amount this year and then money in year twos and three as well.

JOHN SULLIVAN: It was a combination of the Morton money and the relationship we established with the Tour for this year.

JOHN SULLIVAN: We are very hopeful that we will have the Michelin Championship in Las Vegas for the foreseeable future. As you can imagine, a company like Michelin, there can be no incentive to step into a one-year environment. You can buy TV time, you could do all of those things if you were looking to just have a one-year involvement. They are putting their name in this tournament. We have had great conversations and it's a wonderful company. It's somebody we really hope to have a long-term relationship with, and we have the exact same feeling from them. They didn't have enough time to get the finger under what the sponsorship entails, and that's what the need for that option is, to make sure that this fits within their corporate role.

JOHN SULLIVAN: The LVCVA is not a sponsor in any way with regard to where they have been title presenting. They are doing a little hospitality here, but none of our TV time, nothing like they have in years past. There still is room for that to occur. We are hopeful something like that will occur. Until we know the moving forward basis of this, the keeping the identity of the tournament was very important to the Founders Club, and the Michelin Championship at Las Vegas keeps that identity.

JOHN SULLIVAN: We have had a lot of good early news. As you know we converted to a four-day tournament this year to accommodate the pros being at the American Express Championships in Ireland the week before us. A lot of that comes in really late, but we've already had Davis Love, Chris Riley. We are expecting Chad Campbell, Chris DiMarco, and I think we have five or six Ryder Cuppers already committed to us. But a lot of that comes in at the very last minute, as you guys know. But we have always had one of the strongest fields in the PricewaterhouseCoopers Fall Finish, and we expect to do that again this year.