PHH Onboard Telematics Service Delivers Positive Results to Clients

PHH Recommends Networkcar Technology as the Industry Standard

SPARKS, Md., July 21 -- PHH Arval, a subsidiary of PHH Corporation , reports positive results from clients beta testing PHH Onboard(SM), its telematics-powered fleet service. The service is being developed by combining PHH's consulting expertise, fleet data from PHH's data warehouse and Networkcar's wireless fleet management technology. Of the dozen clients and hundreds of fleet vehicles participating in the beta test, early results indicate that fleet telematics will dramatically lower fleet risk profiles, reduce maintenance and fuel costs, and improve productivity.

PHH Onboard is the only fleet telematics service on the market today that provides integrated fleet and telematics information, consulting, and reporting to clients to help them lower costs. The new product, scheduled to be introduced to the general market this fall, will deliver services in three key fleet-related areas: workforce productivity, risk management, and vehicle performance.

Early results are positive

Clients participating in the PHH Onboard beta test have experienced the following results:

  --  Virtual elimination of driving over company-established speed
      thresholds
  --  Dramatic reduction of vehicle idling at inappropriate levels
  --  Enhanced tracking of vehicles, enabling better routing and enhancing
      productivity
  --  Elimination of unauthorized usage during non-work hours or at
      unauthorized locations
  --  Better understanding of vehicle usage, which results in a more
      right-sized fleet
  --  100% accurate odometer readings

According to Patrick Kelley, Senior Vice President of ResCare, Inc., a client currently beta testing the service, "Within a few days of installation, we had some immediate improvements. For instance, we discovered multiple drivers were traveling over ResCare's speed threshold of 70 miles per hour; after communicating with those drivers, those speeds dropped dramatically. We have also been able to virtually eliminate the use of the vehicles at unauthorized times, namely at night. The reduction in speeds and unauthorized use has the added advantage of helping us reduce our fuel costs. And, of course, the location technology is important to us, since we always know where our vans are when they're transporting people." Kelley also said he believes the risk management benefits of the program may help reduce his company's insurance costs.

PHH Arval calls for Networkcar as standard technology platform

"The results our PHH Onboard beta clients are seeing reinforce our belief that telematics technology will revolutionize fleet management," said Paige O'Neill, senior vice president, marketing and development for PHH Arval. "The benefits touch virtually every aspect of fleet, from safety to productivity and vehicle performance. By combining PHH's fleet data with real-time vehicle information, we are able to make recommendations to our clients that have immediate impacts."

Because telematics-powered services have such great potential, PHH is recommending that the fleet management industry adopt a standard technology platform for fleet telematics applications. O'Neill said that Networkcar's leadership in developing telematics hardware with remote vehicle diagnostic capabilities can be the model for such a standard. "In the 1980s, the PC industry accelerated growth by adopting a common hardware platform that everyone could build upon," she said. "Today, the fleet management industry can accelerate the availability of telematics solutions for car and light-duty truck fleets by adopting a common technology platform."

Currently, the telematics hardware and services market is fragmented. According to a recent report by Frost & Sullivan, many fleets are reluctant to adopt the technology, in part because lack of standardization results in too many systems and too many choices, confusing the market. By adopting a standard technology platform, the fleet management industry could eliminate the challenge of market fragmentation and focus on achieving real business benefits from telematics applications.

Networkcar, a subsidiary of The Reynolds and Reynolds Company , is an automotive industry leader in remote vehicle diagnostics, vehicle tracking and routing. PHH Arval and Reynolds and Reynolds announced a strategic alliance in 2004 to accelerate the deployment of onboard technology solutions to vehicle fleets. For more information visit http://www.networkcar.com/ .

About PHH Arval

PHH Arval is the second largest commercial fleet management company in the United States and Canada(2). 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 one of the top ten originators of retail 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 about the company and its subsidiaries please visit our website at http://www.phh.com/.

(1) Inside Mortgage Finance, May 2005

(2) Automotive Fleet Fact Book, June 2005