ANC Rental Corporation Obtains Approval of Several Fundamental Motions

    FORT LAUDERDALE, Fla.--May 13, 2002--Friday, May 10, ANC Rental Corporation had its second Federal Court win in as many weeks, when Federal Bankruptcy Court Judge Mary Walrath approved its motion to consolidate operations at 16 airports nationwide.
    This ruling brings to twenty-seven the number of airports nationwide where ANC can operate its Alamo and National brands under a single concession agreement, among them, Las Vegas, Memphis, Houston Hobby, Detroit, Hartford, Jacksonville, Pittsburgh, Springfield, MO., Melbourne, FL., and Huntsville, AL. Airports approved in Friday's ruling are Cleveland, Key West, Kansas City, Austin, Dallas-Love, Daytona, Savannah, Tallahassee, Panama City, Fl., Fresno, CA., Syracuse, NY., Medford, OR., Harlingen, TX., Greensboro, NC., Birmingham, AL., and Santa Barbara, CA. The first consolidated airport, the Cincinnati/Northern Kentucky International Airport, was approved for consolidation on January 10.
    Judge Walrath also approved the company's agreement with MBIA Insurance Corporation to use on a revolving basis up to $2.3 billion of financing capacity provided by ARG Funding Corporation, a wholly-owned subsidiary of ANC, to purchase new vehicles. MBIA insures a portion of the debt issued by ARC Funding Corporation, which is ANC's domestic fleet financing subsidiary. She also extended the time the company had to review its real estate contracts. Further, she enforced her ruling of last week by precluding Hertz and Avis from attempting to block ANC's consolidation motions that were approved Friday.
    Friday's approval of the financing agreement secures the company's access to fleet financing through late in the year including the summer peak. The $2.3 billion of available financing augments the previously approved $750 million in medium-term notes, which are expected to be issued in the late second quarter or early third quarter. The $2.3 billion, which is insured by MBIA, brings the total fleet financing to $3 billion dollars for ANC. This financing will ensure that the company continues to restock and build its fleet with new automobiles from several major automobile manufacturers, including GM, Chrysler, Mitsubishi, Nissan, Isuzu, Suzuki, Toyota, and Subaru, among others.
    "This is a tremendous step in our reorganization effort," said Larry Ramaekers, President and CEO, ANC Rental Corporation. "The airport consolidation win allows us to accelerate our FastForward plan at airports across the country. And with the $3 billion in available financing, we will continue to add to our fleet, assuring a wider choice of new cars for our customers in the upcoming summer peak, and for the remainder of this year."
    ANC also won a motion in court, granting the company an additional 60 days to review and then assume or reject its real estate leases.
    ANC Rental Corporation, headquartered in Fort Lauderdale, is one of the world's largest car rental companies with annual revenue of approximately $3.2 billion in 2001. ANC Rental Corporation, the parent company of Alamo and National, has more than 3,000 locations in 69 countries. Its more than 17,000 associates serve customers worldwide with an average daily fleet of more than 275,000 automobiles.