DAYTON, Ohio, -- The Reynolds and Reynolds Company (NYSE: REY) announced today it has ended negotiations with General Motors Corporation (NYSE: GM) to reach a definitive agreement whereby Reynolds, in exchange for 10 percent equity ownership by GM, would become GM's preferred provider of retail management systems and exclusive provider for dealer e-business technology. The two companies had been engaged in negotiations since signing a Memorandum of Understanding on April 20, 2000. "We continue to believe in our vision for the future of automotive retailing and the role of technology to create a seamless online and offline experience for consumers," Lloyd 'Buzz' Waterhouse, Reynolds' CEO, said. "We plan to execute our growth strategies that strengthen our leadership position in this exciting marketplace." Waterhouse said Reynolds' near-term revenues will not be affected by the termination. "Moreover, we'll avoid the significant dilution that would have resulted from giving up 10 percent of our equity," he said. Reynolds and Reynolds headquartered in Dayton, Ohio, is the leading provider of integrated information management solutions to the automotive retailing marketplace. The company's services include a full range of retail and enterprise management systems, networking and support, e-business applications, Web services, learning andconsulting services, customer relationship management solutions and leasing services.