Zipcar Fuels Up for National Expansion With $10 Million in Funding Led by Benchmark Capital

Zipcar Announces Launch of West Coast Operations and Expansion Plans to Make Car-Sharing a Key Part of Urban Life in Cities Throughout North America

CAMBRIDGE, Mass., July 11 -- Zipcar today announced it has secured its first institutional round of funding, with an initial close of $10 million, led by West Coast venture capital firm Benchmark Capital. This new funding will fuel Zipcar's aggressive expansion plans to become the country's first national car-sharing service. Zipcar, the nation's largest provider of self-service cars for use by the hour or day, now has the green light to bring its convenient and cost-effective alternative to car-ownership to millions of urban residents throughout North America. The company plans to immediately expand its service, currently operating in 7 states and 21 cities, to additional major U.S. metropolitan markets. As part of this expansion, Zipcar will launch West Coast operations, with plans to bring its service to Seattle, San Francisco and Portland, Oregon. The schedule for these rollouts will be announced on August 1, 2005.

Bob Kagle, a General Partner at Benchmark Capital, will join the Zipcar Board of Directors, effective immediately. According to Kagle, Zipcar has pioneered a new category of transportation and has created a brand that is changing how people live, work and play in cities throughout the country. "Zipcar is successfully freeing urban dwellers from the burdens of car ownership, making cities more affordable, enjoyable and environmentally- friendly," he said. "We at Benchmark are excited to support and partner with Zipcar in their quest to become the nation's leading car-sharing company and brand."

Over the past year Zipcar has realized a 100%+ increase in members and vehicles and has become the first car-sharing service in North America to attain profitability in all of its markets. Zipcar has the largest active membership base of any car-sharing service, with 40,000 members signed since inception and over 2,000 new members joining Zipcar's service each month throughout metro New York, Boston and Washington, DC. To date, Zipcar has built the largest and most varied fleet of any car-sharing service, with over 20 different makes and models including the Volkswagen Jetta, Mazda 3, Toyota Prius hybrid, Volvo S40, MINI Cooper, BMW 325i, Scion xB, Ford Escape and Toyota Tacoma pickup truck.

Zipcar's tremendous growth has been fueled by innovative marketing programs, record business-to-business sales, and strategic national and local partnerships including forward-thinking cities and towns, transit authorities, consumer goods companies and more than 20 universities and colleges. In April, XM Satellite Radio signed a national marketing agreement with Zipcar, the first time a satellite radio provider has partnered with a car-sharing service. XM's service is now available in every Zipcar at no additional cost to members, and the companies have recently launched discounts and promotions to foster trial and adoption of both companies' services.

"From the day we put our first car on the road, we've proven that car- sharing can provide a smarter, more feasible alternative to car-ownership and dramatically expands the transportation alternatives that help to improve the overall lifestyle of urban residents," said Zipcar CEO Scott Griffith. "Benchmark's investment marks the transition of Zipcar and car-sharing from a revolutionary concept to an established and vital national transportation solution for urban and university settings alike."

With Zipcar's technology, accessing and using a Zipcar is as easy as getting cash from an ATM. In minutes or up to a year in advance, members can reserve Zipcars online or by phone, 24 hours a day, seven days a week. Zipcar members have automated access to Zipcars using a "Zipcard" to simply unlock the door and drive away. Rates start at $8.50 per hour and $59 per day, with gas, parking, insurance and XM Satellite Radio service included. Special business rates are also available for small to large-sized companies looking for a more convenient and cost-effective way of providing transportation for their employees.

About Zipcar

Zipcar was founded in 1999. Since 2000, when Zipcars first hit the road, 40,000 consumers and business drivers ages 21+ have joined. Zipcar currently operates 700 vehicles in 7 states and 21 cities, including Boston, New York City and Washington, D.C. Zipcar also has operations on or near over 20 university campuses. For a convenient and cost-effective driving experience, or to learn more, visit http://www.zipcar.com/ .