PHH Arval and Reynolds and Reynolds Announce Strategic Alliance

Relationship will enhance ability to bring onboard technology solutions to vehicle fleets

SPARKS, Md., and DAYTON, Ohio, Oct. 4 -- PHH Arval, a subsidiary of Cendant Corporation , and The Reynolds and Reynolds Company announced today that they have formed a strategic alliance.

PHH is one of the world's leading vehicle management companies, and Reynolds and Reynolds' Networkcar unit is an automotive industry leader in remote vehicle diagnostics, vehicle tracking and routing. Under the agreement, PHH will develop onboard technology products powered by Networkcar capabilities, designed to help managed fleets operate more safely and efficiently through the use of technology in the vehicle.

In addition, Reynolds and Reynolds has appointed PHH Arval as its fleet management provider to manage its 1,000-vehicle fleet.

In making the announcement, George J. Kilroy, President and CEO of PHH Arval, said: "Our alliance with Reynolds is part of PHH's overall technology strategy. We are committed to being in the forefront of technology advances that benefit our clients and their fleet drivers. This new relationship is a major step toward our vision of greater fleet efficiency through technology, and we look forward to bringing exciting new fleet capabilities to the marketplace. In addition, we are honored to welcome Reynolds to the PHH family of clients."

"This alliance with one of the world's leading vehicle management companies is an affirmation of Networkcar's unique value proposition in the fleet management arena," said Dave Dutch, President of Networkcar. "Our leading edge technology provides the fleet performance and location information necessary to make smarter decisions. Combined with PHH's suite of fleet services, fleet management can be taken to a new level."

About Networkcar; Reynolds and Reynolds

Networkcar is the leading provider of around-the-clock services for remotely monitoring the performance, location and security of fleet and consumer vehicles. Networkcar's wireless in-vehicle technology merges patented remote diagnostic systems with satellite-based Automatic Vehicle Location (AVL) technology. Networkcar's fleet monitoring system, Networkfleet, helps fleet managers reduce operating costs and improve productivity by providing remote online access to detailed vehicle information ranging from vehicle location to fuel efficiency trend data. Networkcar's consumer telematics offering allows car owners to increase safety and security, save time and reduce the cost of ownership with preventive maintenance and early problem detection. The company recently received a 2004 Technology Leadership Award from Frost and Sullivan for Remote Vehicle Diagnostics (RVD) and a 2004 Telematics Update Magazine Award for Best Commercial Vehicle Solution. For more information visit http://www.networkcar.com/ .

Networkcar's parent company, Reynolds and Reynolds, is the leading provider of integrated solutions that help automotive retailers manage change and improve their profitability. Serving the automotive retailing industry since 1927, Reynolds enables OEMs and retailers to work together to build the lifetime value of their customers. The company's award-winning product, service and training solutions include a full range of retail and enterprise management systems, Web and Customer Relationship Management solutions, learning and consulting services, documents, data management and integration, networking and support and leasing services. Reynolds serves more than 20,000 customers. They comprise nearly 90 percent of the automotive retailers and virtually all OEMs doing business in North America. The Reynolds International Division serves automotive retailers and OEMs through Incadea GmbH and its partner network as well as a worldwide consulting practice. For more information, visit http://www.reyrey.com/ .

About PHH

Founded in 1946, PHH Arval is one of the world's leading vehicle management companies. A subsidiary of Cendant Corporation [NYSE: CD], PHH Arval provides integrated leasing, management and card payment solutions to thousands of corporate, government and service-related fleets, including nearly one-third of the Fortune 500 companies. In conjunction with its strategic partners and through First Fleet Corporation, its subsidiary serving the truck industry, PHH Arval manages over a 1.3 million vehicles worldwide. Through consultative expertise, flexible personalized service and award- winning Internet technology, PHH helps clients reduce costs and increase productivity. For more information, visit http://www.phh.com/ , or call 1-800-ONLY PHH.