The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Saturday, January 21, 1995             TAG: 9501210214
SECTION: BUSINESS                 PAGE: D2   EDITION: FINAL 
SOURCE: STAFF REPORT 
                                             LENGTH: Short :   34 lines

NASCAR RESPONDS TO CHARGES MADE BY BAILEY'S CIGARETTES

Tiny Bailey's Cigarettes, a south-central Virginia micro-brand, was trying to engage in ``ambush marketing'' when it attempted to sponsor a late-model stock car in the Winston Select 300 last September at South Boston Speedway.

That's the word from NASCAR in its formal answer to a suit filed by Bailey's in U.S. District Court in Danville.

Bailey's sued NASCAR and R.J. Reynolds Tobacco Co. in December in state and federal courts, alleging that they refused to allow Bailey's logos on a stock car that Bailey's sponsored and that Wayne Patterson drove to victory in the Sept. 18 race.

NASCAR and RJR contend that NASCAR officials lawfully prevented Bailey's from improperly trading on RJR's sponsorship of the race and from trying to interfere with NASCAR's contract with RJR.

NASCAR also asserted that under its rules, owners and drivers agree to accept NASCAR's decisions ``regarding approval or disapproval of any advertising'' and sponsorship of race cars.

Bailey's is seeking $100,000 in damage and an injunction against NASCAR and RJR so that it can sponsor late-model stock cars in the Winston Racing Series. NASCAR and RJR want the suit dismissed. Both sides have agreed to have the suit tried in federal court.

In an order filed Thursday, U.S. District Judge Jackson L. Kiser gave both sides 14 days to submit suitable trial dates. by CNB