Avis Ends Travel Agency Commissions On Business and Government Contract Bookings

PARSIPPANY, N.J., April 5 -- Avis Rent A Car System, Inc. announced today that it will no longer pay base commissions to travel agents on car rentals for U.S. and Canadian corporate and government accounts that have entered into individually contracted rate agreements. The change takes effect for rentals occurring after April 5, 2002. The new policy does not affect travel agency commissions for leisure car rentals, association rentals, or business rentals that are not subject to an individually contracted rate agreement.

The change will also not affect travel agency overrides and Avis' popular Club Red bonus program.

``This policy change not only allows us to significantly reduce expenses, but also keeps our cost base level with our primary competition,'' said Bob Salerno, president and chief operating officer of Avis Rent A Car System, Inc. ``While we recognize the impact of this move, we believe that its targeted structure means it will have a minimal effect on the majority of our travel agency partners.''

If a travel agency anywhere in the world books a U.S. or Canadian rental for an Avis customer traveling under an individually contracted rate, Avis will no longer pay a base commission.

Details on the new policy will be posted on http://www.avis.com and http://www.avisagent.com during the week of April 8th.

Avis Rent A Car System, Inc. and its subsidiaries operate the world's second largest general-use car rental business, providing business and leisure customers with a wide range of services at more than 1,700 locations in the United States, Canada, Australia, New Zealand and the Latin/American Caribbean region. The company is a wholly owned subsidiary of Cendant Corporation , a diversified global provider of business and consumer services primarily within the real estate and travel sectors.