Schumacher signs new contract with Ferrari

   Copyright c 1998 Nando Media
   Copyright c 1998 Agence France-Presse

FRANKFURT, Germany (Jul 17, 1998 - 13:28 EDT) - Former world champion
Michael Schumacher has signed a new contact with Ferrari which will take
him through until the end of the 2002 Grand Prix season.

Schumacher, currently lying second in this year's championship, is to
receive a record salary of $123 million.

The German driver, world champion in 1994 and 1995, said he had also been
in negotiation with McLaren-Mercedes but in the end had little difficulty
in plumping for the sign of the prancing horse.

The deal was finally signed at the Maranello headquarters of Ferrari on
Thursday night.

Despite the pot fulls of money on offer he denied the decision to stick
with Ferrari was finance-driven.

Speaking at a press conference here Friday he said: "Money was
secondary. The financial offers were identical or better, there were other
more important considerations. The decision in favour of Ferrari was better
for my well-being and my sporting career than any other option.

"I've always worked well with the team so confidence can be maintained
at 100 per cent."

Schumacher said Ferrari -- which last lifted a Formula One champion back in
1979 courtesy of Jody Scheckter -- had "broken" McLaren-Mercedes'
domination of Formula One, intimated that he was anxious to continue
driving after this fresh contract expires in four years time.

His existing links with Ferrari were due to take him through to the end of
the 1999 season.

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