Heritage Auto Center, Inc. - Page 4

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          individually, and W-T-W, Inc., were accused of consumer fraud by            
          the attorney general of the State of Washington (attorney                   
          general).  On November 25, 1985, the attorney general, Mr.                  
          Wright, and W-T-W, Inc., executed a consent decree which was                
          entered in the Superior Court for the State of Washington for               
          King County.  Under the terms of the consent decree, Mr. Wright             
          and W-T-W, Inc., were enjoined from participating in specific               
          fraudulent activities relating to the advertising, sale, repair,            
          or servicing of automobiles.  The lawsuit filed by the attorney             
          general and the controversial advertising practices of W-T-W,               
          Inc., were covered by the local press, with at least five                   
          articles appearing in the Seattle Times newspaper during the                
          period from November 26, 1985, through January 8, 1986.                     
               In addition to the lawsuit brought by the attorney general,            
          Mr. Wright was also the subject of consumer lawsuits involving              
          allegedly fraudulent sales practices; these suits were still                
          pending in April of 1988.  Also in 1988, disgruntled customers              
          picketed the Totem Lake dealerships, and a picture of one of                
          these picketers and an article discussing the pickets appeared in           
          the Seattle Times on April 20, 1988.  Furthermore, on April 15,             
          1988, seven former employees of W-T-W, Inc., filed a complaint              
          against W-T-W, Inc., and Mr. Wright in the Superior Court of                
          Washington for King County, alleging, among other things, the               
          fraudulent endorsement of employee checks.                                  






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