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Car/Limo Rentals

 September 19, 2001
Budget Obtains Injunctions Against Former Master Franchisee In Sweden

 Following the recent termination of its former master franchisee in Sweden, Svensk Biluthyrning AB (SBAB), due to significant unpaid fees, Budget Rent a Car International has filed and obtained certain injunctions in the City Court of Lund against SBAB and SBAB's parent company Sydbilar Vagnparksystem AB (Sydbilar). These injunctions enjoin SBAB and Sydbilar from transferring certain telephone numbers associated with Budget to any third party.

Under a second injunction, Sydbilar is also required to assign to Budget rental agreements used in conjunction with SBAB's terminated Budget business and not to transfer these to any third party. Budget has also asked the court to issue an injunction to restrain SBAB, Sydbilar and associated companies from involvement in any activities competitive with Budget.

Budget further intends to issue a formal application for bankruptcy against SBAB for unpaid amounts owing to Budget and other Budget licensees. Budget will take such further steps as are necessary in order to protect its brand and reputation, to prevent infringement of its trade marks and confidential information, and to protect its network in Sweden.

Budget is committed to maintaining its presence in Sweden and to developing the market further with a strong local master franchisee and is currently in detailed negotiations with a number of parties to appoint a new master franchisee for Sweden. In the meantime, Budget Rent a Car International is acting as the Budget franchisor in the Swedish car rental market. Budget intends to maintain the majority of the Budget network formerly operated by SBAB, who will become licensees of the new master franchisee.

Sweden generates significant outbound business to Budget's global network in Europe, the Middle East, Africa, North America and Asia Pacific.