PHH Arval Announces New Telematics-Powered Service

PHH Onboard(SM) Clients to Benefit From Risk Reduction, Increased Productivity and Reduced Maintenance Costs

SPARKS, Md., March 29 -- PHH Arval, a subsidiary of PHH Corporation , today announced PHH Onboard(SM), a new fleet service powered by telematics. After several years of development and the completion of a successful alpha test in January 2005, PHH recently started beta testing with a number of clients. PHH Onboard will deliver services in three key fleet-related areas: productivity, risk management, and vehicle performance. The service takes fleet management to a new level by combining the power of telematics technology with fleet information and consultative expertise to lower fleet costs, increase the safety and productivity of employee drivers, and enhance the performance of critical business assets.

In the fall of 2004, PHH formed a strategic alliance with The Reynolds and Reynolds Company and its Networkcar unit to develop onboard technology products. "PHH Onboard is the result of many years of technology and service development, market research, and partnerships with our clients and industry leaders such as Networkcar," said Paige O'Neill, senior vice president, product development and marketing for PHH. "Our pilot clients are seeing early results that have virtually eliminated speeding in their fleets, reduced fuel costs, provided 100% accurate odometer readings, and improved their corporate risk profiles."

PHH Onboard is expected to be generally available in the fall of 2005. The service offering will combine the following:

    -- Networkcar's industry-leading technology for remote monitoring of
       vehicle performance, location, and security;
    -- Data analysis and policy recommendations based on PHH's consultative
       expertise and over 10 years of industry and vehicle data stored in
       PHH's award-winning data warehouse;
    -- Real-time reporting via the Internet that enables greater control
       over fleet drivers and expenses, sets benchmarks for measuring
       productivity and performance, and enhances decision-making.

O'Neill concludes, "PHH Onboard is a powerful convergence of telematics technology, extensive information stored in PHH's data warehouse, and nearly 60 years of fleet management consulting expertise. We believe the results will revolutionize fleet management, as this technology helps fleets dramatically lower costs, enhance productivity and risk management, and improve vehicle performance."

About PHH

PHH Arval is the second largest commercial fleet management company(2) in North America. PHH Arval provides outsourced fleet management solutions to corporate clients, including nearly one-third of the Fortune 500 companies, and government agencies. Through consultative expertise, flexible customer service, and award-winning Internet technology, PHH helps clients reduce costs and increase productivity. For more information, visit http://www.phharval.com/, or call 800 ONLY PHH.

About PHH Corporation

Headquartered in Mount Laurel, New Jersey, PHH Corporation is a leading outsource provider of mortgage and vehicle fleet management services. Its subsidiary PHH Mortgage is the seventh largest retail originator of residential mortgages in the United States(1), and its subsidiary PHH Arval is the second largest fleet management services provider in the United States and Canada(2). For additional information on the company and its subsidiaries please visit http://www.phh.com/.

   (1) Inside Mortgage Finance, February 2005
   (2) Automotive Fleet Fact Book, June 2004