Zipcar Secures $20 Million in Vehicle Financing From GE Commercial Finance Fleet Services

One of the world's largest fleet financing companies partners with Zipcar to fuel car sharing industry leader's plans to ramp fleet size and expand to new markets

CAMBRIDGE, Mass., May 23 -- With market expansion and 100% growth over the last 12 months, Zipcar, North America's largest car sharing company, announced today that GE Commercial Finance Fleet Services has green lighted $20 million in lease line financing to support significant expansion of Zipcar's service. Zipcar today also unveiled plans to rapidly double its fleet while expanding within new and existing urban markets. Earlier this month, Zipcar introduced service in Toronto, Canada, the company's first venture into markets outside the United States.

According to Deb Frodl, senior vice president at GE Commercial Finance Fleet Services, the company recognizes how Zipcar's premier car sharing experience is leading a change in how people live and work in cities throughout the country. "Zipcar has shown that by offering the right vehicles, the right technology and a superior member experience, drivers and their communities can benefit from an affordable and environmentally-friendly alternative to owning a car," Frodl said. "We are proud to help Zipcar grow its business."

"Our achievements over the last 12 months, and this announcement today, underscore Zipcar is North America's foremost car sharing brand and experience, delivering a proven transportation alternative that is improving the overall lifestyle of urban residents," said Scott Griffith, Zipcar's chief executive officer. "GE's support will fuel our rapid expansion and international growth, allowing us to bring the Zipcar experience and the benefits of car sharing to individuals, businesses, universities, transit authorities and forward-thinking cities and towns throughout North America."

With over 55,000 active members and 1,500 cars -- including more than 20 different makes and models -- in 11 states and provinces, Zipcar has the largest membership base of any car sharing service and the most varied fleet. GE Commercial Finance Fleet Service's financial support and fleet management expertise, along with advances in Zipcar technology, will enable Zipcar to source and roll out new vehicles more quickly and cost-effectively than any company in the category.

Zipcar, the only U.S. car sharing company to operate profitably in all of its established markets, will also realize significant economies of scale to further improve profit margins while increasing revenue. Zipcar aims to double its fleet over the next 12 months, while accelerating plans to bring its service to many new urban markets within the next five years.

Unlike car rental services, which primarily serve out-of-town visitors, Zipcar's car sharing service provides new economic and environmental benefits to people who live and work in North America's most populated cities. By freeing a rapidly increasing number of individuals and businesses from the burdens of car ownership, Zipcar makes a positive impact on the affordability and quality of life in urban markets, by reducing demand on already insufficient parking capacity, traffic congestion and greenhouse emissions. The latter is accomplished by replacing older, personally-owned vehicles with newer cars that have more stringent pollution controls.

Recent studies by Zipcar and other government transportation agencies indicate that each Zipcar takes over 20 privately-owned vehicles off the road. Forty percent of Zipcar members stated that had Zipcar not been a viable and economically sound transportation solution, they would have kept their privately-owned vehicle, or would have purchased a primary or secondary vehicle. Zipcar members also report they save an average of $435 per month, drive less each year compared to owning a vehicle and increase usage of public transportation resources by over forty-seven percent.

  In the past 12 months, Zipcar achieved record success. Highlights include:

  * Zipcar achieved an annualized revenue run rate of $25MM.

  * Revenue, fleet and membership have increased 100%.

  * Zipcar now has over 55,000 active members and 1,500 cars on the road,
    resulting in over 20,000 privately owned vehicles taken off the road.

  * Fueled by $10 million in new funding led by West Coast venture capital
    firm Benchmark Capital, Zipcar launched its first West Coast
    operations, with cars hitting the streets of San Francisco in September
    2005. Zipcar is currently the largest car sharing service in San
    Francisco.

  * In May 2006, Zipcar launched its first international operations in
    Canada, providing residents of Toronto the proven benefits of car
    sharing.

  * 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 in the
    U.S. at no additional cost to members.

  * IKEA became the first major U.S. retailer to embrace car sharing by
    incorporating Zipcar as an integral part of its first Massachusetts
    store.

  * Thousands of new business drivers both big and small joined Zipcar as a
    cost-effective and time-saving alternative to taxis, car services and
    company fleets.

  * Several new colleges, including Brown, Rutgers and the University of
    Minnesota, turned to Zipcar to improve campus life and solve the
    challenges of limited parking, high infrastructure costs and increased
    traffic congestion. Zipcar now has 24 universities in its college
    partnership program.

  About Zipcar:

With more than 55,000 consumer and business drivers, Zipcar is North America's largest car sharing service. The company currently operates 1,500 vehicles in 11 states and provinces, including metropolitan New York, Boston, San Francisco, Minneapolis, Toronto and Washington, DC. 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. With Zipcar, gas, parking and insurance are always included. For more information, visit http://www.zipcar.com/.

About GE Commercial Finance Fleet Services:

GE Commercial Finance Fleet Services, based in Eden Prairie, Minn., is a global fleet management company with operations in the United States, Canada, Europe, Japan, Australia and New Zealand. GE Commercial Finance is the business-to-business finance unit of General Electric. General Electric is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems.