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Car/Limo Rentals

 June 24, 2002
Avis Expands Operations In Japan And Korea

 Avis Europe plc, the leading car rental company in Europe, Africa, the Middle East and Asia, continues to expand its operations in the growing markets of Japan and Korea. Japan, the second largest car rental market after the USA, has a total number of car rental transactions of approximately 15 million per annum. Avis currently has 240 rental locations in Japan, and plans to open between 5 and 10 new locations every year. Since starting operations in 1999 Avis has become the fifth largest car rental operator, and with a fleet size of over 20,000 vehicles from manufacturers including Toyota, Nissan, Mitsubishi, DaimlerChrysler and BMW, Avis is well placed to take advantage of growing demand, particularly as a result of the World Cup.

World Cup (soccer) rentals have been mainly from the European market, such as Germany, Italy, Spain, France and the UK, and there has been strong growth in this inbound business. Currently, Avis Japan holds 65% of the total inbound rental market.

In Korea, the total car rental market in 2002 has shown a 33% increase over 2001, and Avis is growing ahead of the market, maintaining its position as the second largest car rental operator. In 2002 Avis has opened six new locations, to make a total of 54, and has plans to open a further four rental locations in key business areas throughout Korea.

The fleet of over 6,000 vehicles is sourced from manufacturers including Daewoo, Hyundai, Samsung and Kia, and includes luxury vehicles such as the Audi T/T convertible and Saab S900 Convertible.

World Cup rental statistics show that 38% of Avis reservations in Korea are from US based customers, with Germany having 21% of reservations, and revenue for June 2002 shows a strong year on year increase of 62%.

Dale Morley, General Manager responsible for Asia at Avis Europe, comments: ?In a fragmented, rapidly developing market, Avis is in a good position to take advantage of some consolidation which we expect to see as the market matures. Our strategy of working with established partners in the region, together with our leading brand status, is a proven and successful business model and allows us to sustain growth, both domestically and internationally.?

Avis has the leading international car rental presence within Asia, with operations in Brunei, Guam, Hong Kong, India, Indonesia, Macau, Malaysia, Pakistan, Philippines, Singapore, Sri Lanka and Thailand. Avis has also recently signed a joint venture agreement with Shanghai Automotive Industry Sales Corporation (SAISC) in China to commence car rental operations in that country.