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Car/Limo Rentals

 May 21, 2001
Budget Announces Completion Of French And U.K. Network Reorganization

 Budget Rent a Car International has entered into agreements to sell 116 locations to complete the refranchising of its French national network, and also announced the sale of its Huddersfield and Dewsbury locations as well as an agreement to sell its Edinburgh and Glasgow airport and downtown corporate locations to its largest U.K. franchisee, Jaeban U.K. Limited, essentially completing the refranchising of the U.K. With the transfer of these franchises, the Company will operate only five corporate locations in France and seven in the U.K. Jack Frazee, president and chief operating officer of Budget Rent a Car International commented, "The U.K. and France sales continue our move towards a substantially franchise economic model and I am pleased to report that we remain on target to meet our restructuring and financial plans in both the U.K. and Europe."

In France, Budget will maintain corporate operations at the major international gateway airports in Paris and Nice plus two major downtown locations in Paris. In total, there will be approximately 300 Budget locations in France following the reorganization. As previously announced, by converting geographic franchise zones into major regional areas, Budget France will be able to achieve better fleet utilization and higher levels of service through a more effective management of the business.

Following the U.K. sale, Jaeban U.K. Limited will operate 20 locations throughout the Midlands, North West of England and Scotland. At the refranchised locations, Jaeban will retain staff and increase fleet levels to continue building the Budget brand. Budget will maintain its corporate operations at the three major international London gateway airports at Heathrow, Gatwick and Stansted plus four major downtown locations in London.