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Avis Appoints A. Barry Rand as New Chairman and CEO

9 November 1999

Avis Appoints A. Barry Rand as New Chairman and CEO; Former No. 2 Xerox Executive Picked to Drive Transformation to the New Avis

    GARDEN CITY, N.Y.--Nov. 9, 1999--Avis Rent A Car, Inc. today announced the appointment of A. Barry Rand, 55, as Chairman and Chief Executive Officer of the Company, effective immediately.
    Martin L. Edelman, Chairman of the Executive Committee of the Board and former non-executive Chairman, said: "Barry is an outstanding business leader in the truest sense, able to inspire people and create transforming, positive change in large scale organizations. He has a breadth of experience that is seemingly tailored for Avis. Barry has a proven track record of building and growing a diverse set of multi-billion dollar businesses. His successes in both the business-to-business and retail arenas fit perfectly with Avis, which is primarily a business-to-business operation, and has a major consumer brand. Barry has shown that he can realize a company's potential to develop profitable revenue streams from outsourcing and information-based solutions, an essential component in Avis' strategy moving forward. So, when we became aware that Barry was interested in Avis, it was obvious that we had a tremendous opportunity."
    Mr. Rand added: "I'm extremely excited by Avis' prospects. With the purchase of PHH in June, Avis established a much broader and more consistent growth-oriented business platform -- and gave birth to the New Avis, which is a service and information provider focused on a full array of automotive transportation and vehicle management solutions. We will build on the outstanding heritage of the car rental business that has made Avis one of the most highly recognized brand names in America and the world's second largest car rental system. In short, it's a unique chance for me to draw on my experiences to help the Company unlock shareholder value. It is also an opportunity for me to join a highly qualified, dynamic management team. In Robert Salerno, Kevin Sheehan and Mark Miller, the Company has a highly talented set of executives who have made tremendous progress at the Company, and I eagerly look forward to working with them."
    At Avis, Mr. Sheehan will remain President of Corporate and Business Affairs; Mr. Salerno will remain President and Chief Operating Officer of the Avis Rental Car Group; and Mark Miller will remain President and Chief Operating Officer of the Avis Vehicle Management Services Group. All three will report to Mr. Rand.
    Most recently, Mr. Rand was Executive Vice President for Worldwide Operations at Xerox Corporation, responsible for managing $18 billion in revenues and 70,000 employees. He helped orchestrate a tremendous period of financial performance while at Xerox. His initiatives included leading the transformation of Xerox into an aggressive and efficient marketing and sales service organization, which garnered recognitions such as Best Sales Force in America, Best Training Organization in America, and an extraordinary two Baldrige Awards. Mr. Rand also built Xerox's service outsourcing business and established its retail and leasing financing operations.
    Mr. Rand was graduated from American University in Washington, DC and received an MBA from Stanford University. He resides in Stamford, CT with his wife, Donna, and their two children.
    Mr. Edelman concluded, "Although we have been extremely pleased with the performance of our executive team, and execution is going as planned, the opportunity to appoint Barry, with his combination of talents and successful experiences, made him the clear choice to take the New Avis to the next level."
    Avis is one of the world's leading service and information providers focused on 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 one million vehicles and has a substantial credit card business, with over four million fuel and maintenance cards outstanding. Annually, the Company generates over $4 billion in total revenue.

This press release contains statements related to future results, which are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements involve risks and uncertainties, including the impact of competitive products and pricing, changing market conditions, the ability of the Company and its vendors to complete the necessary actions to achieve a Year 2000 conversion for its computer systems and applications; and other risks which are detailed from time to time in the Company's publicly-filed documents, including its Annual Report on Form 10-K for the period ended December 31, 1998. Actual results may differ materially from those projected. These forward-looking statements represent the Company's judgements as of the date of this release.