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Car/Limo Rentals

 January 26, 2000
AVIS RENT A CAR ANNOUNCES RECORD EARNINGS FOURTH QUARTER

 Avis Rent A Car, Inc. has reported record results for the fourth quarter and full year 1999.

A. Barry Rand, Avis' Chairman and Chief Executive Officer, said: "Our solid fourth quarter results cap a year of significant progress for Avis. We continued to exploit New Avis growth opportunities by strategically leveraging the integration of our vehicle management services operations ('VMS') with the rental car group, including VMS' internet-based e-business systems platform. Our combined business shows great promise for 2000 and we are excited about the vast array of opportunities that will not only foster further growth but unlock unrealized shareholder value."

On a historical basis, net income and diluted earnings per share for the three months ended December 31, 1999 were $10.7 million and 20 cents, respectively, compared to $3.6 million and 11 cents per share, respectively, for the same period in 1998. The 1999 period includes the results of operations of VMS subsequent to its date of acquisition on June 30, 1999.

On a historical basis, net income and diluted earnings per share for the twelve months ended December 31, 1999 were $92.6 million and $2.61, respectively, compared to $63.5 million and $1.82, respectively, for the same period in 1998. Our 1999 results include a previously reported first quarter non-recurring $7.5 million pre-tax gain representing 13 cents diluted earnings per share, resulting from the curtailment of the Company's defined benefit plans.

"Once again, our brand leadership, innovation and commitment to enhance shareholder value helped generate results above expectations, driving the company to its 10th consecutive quarter of exceeding earnings per share consensus. Looking ahead, our earnings outlook is solid. We anticipate strong performance from both the rental car and VMS businesses. Projects that were initiated in 1999 will further contribute to our strong GAAP and cash earnings per share estimates for 2000," said Kevin M. Sheehan, President of Corporate and Business Affairs.

On a pro forma basis, revenue for the fourth quarter increased 4.5 percent to $1.0 billion in 1999 from $962 million in 1998. Net income for the fourth quarter of 1999 was $10.7 million, an increase of $16 million over the same period in 1998. Diluted earnings per share was 20 cents, an increase of 49 cents over the same period in 1998.

On a pro forma basis, revenue for the twelve months ended December 31, 1999 increased 6.1 percent to $4.1 billion from $3.9 billion in 1998. Net income and diluted earnings per share for the twelve months ended December 31, 1999 were $73.2 million and $1.72, respectively, including the aforementioned non-recurring gain, compared to $26.9 million and 25 cents, respectively, for the comparable period in 1998.

The pro forma operating results give effect to the acquisition of PHH North America, PHH Europe and Wright Express ("Vehicle Management Services or VMS") as if they had occurred on January 1, 1998.

Avis is one of the world's leading providers of comprehensive automotive transportation and vehicle management solutions, with strengths in car rental, vehicle leasing, and vehicle management services. Avis operates the second largest general-use car rental business in the world, with locations in the United States, Canada, Australia, New Zealand and the Latin American Caribbean region. Avis operates the vehicle management and fuel card businesses through three separate units: PHH North America, PHH Europe and Wright Express. The services of these units consist of vehicle leasing and a broad range of vehicle related fee based services. The Company manages a fleet of approximately 1 million vehicles and has over 4 million fuel and maintenance cards outstanding. Annually, the Company generates over $4 billion in total revenue.

Visit: http://www.avis.com