This action follows false claims made by Pizza Hut in a press release issued in October 1999 that it had entered into an agreement to place a new logo on the Proton rocket that will launch the permanent living capsule of the International Space Station in July 2000.

The lawsuit demands that Pizza Hut immediately cease and desist from advertising and/or promoting all claims that any relationship exists between Pizza Hut and the SMC-RAKA and furthermore from mentioning sponsorship of the upcoming ISS launch on their website and all other marketing communications.

"No contract or deal exists between Pizza Hut and the SMC-RAKA for sponsorship of this rocket," says Yuri Cherkasov, General Director of the SMC.

Prior to taking legal action, both the SMC-RAKA and Global Impact Communications, Inc., the sole and exclusive commercial agent for the SMC, attempted to communicate their concerns over the false claims directly with Pizza Hut, but to no avail.

"We and our US counterparts have tried for several weeks to work with Pizza Hut to actualize this project. It is now clear that they are not serious and are trying to reap public relations attention at the RAKA's expense," says Oleg Volkov, SMC's Executive Director.

"To maintain the positive image of the Russian Space Program and support our legacy of space pioneers and leaders in space research, every project we undertake with an advertiser must have an educational element," affirms Cherkasov. "Unfortunately, it seems that Pizza Hut sees the use of our rockets as a mere 'means to an end' to build share value,"

The SMC is actively involved in exploring commercialization of the Russian space program. The sponsorship at the centre of this dispute involves a 10 by 2.5-meter banner on the side of the 200ft Proton rocket. Other upcoming opportunities include:

• Sponsorship on the first ISS crew launch scheduled for November 2000
• Product placement aboard the International Space Station beginning November 2000
• Product testing in space beginning November 2000-underwater in zero gravity or on space walks.
• Sponsorship on rockets that are launched each month carrying satellites, supplies, etc.
• Sponsorship of a 24/7 Earthcam from the ISS

"Space is of increasing interest to major marketers throughout the world," says Erik Dochtermann, CEO of Global Impact Communications, Inc, "The conquest of the unknown and undiscovered is the ultimate metaphor for almost every global corporation's aspirations."

To date, major advertisers such as Omega Watches, Swatch Watches and Siemens Computers have initiated long-term agreements for product testing and development.

Yuri Cherkasov is General Director at SMC

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