Localiza Reports Net Income of R$ 31.4 million and EPS of R$0.50 in 2Q05

Net revenues grew by 45.4% and EBITDA grew by 34.5%

BELO HORIZONTE, Brazil, Aug. 9 -- Localiza Rent A Car S.A. (Bovespa: RENT3), the largest car rental network in Latin America with 32 years of existence, reports today its results for the second quarter of 2005 (2Q05). The following financial and operational information, except when otherwise indicated, is presented in US GAAP and in Brazilian reais (R$); the comparisons refer to the second quarter of 2004 (2Q04).

  2Q05 HIGHLIGHTS

  -- Net income in 2Q05 grew by 8.5% over the R$28.9 million in 2Q04 and
    20.7% over the R$26.0 million in 1Q05. Earnings per share were R$0.50;
  -- EBITDA (R$59.5 million)  was 34.5% higher than in 2Q04 (R$44.2million)
     and 20.9% lower than in 1Q05 (R$75.2 million);
  -- Car rental and fleet rental and management reported a 26% growth in
     revenue when compared to the previous year;
  -- In the car rental segment, volume of business increased 43% when
     compared to 2Q04;
  -- In the fleet rental and management business, volume of business
     increased 12% when compared to 2Q04;

  Full earnings release available to download on http://www.localiza.com/ri
   
   2Q05 RESULTS CONFERENCE CALL
   
   Date: Wednesday, August 10, 2005
   
   Portuguese (US GAAP)                  English (US GAAP)
   10h00 (Brasilia Time)                 12h00 (Brasilia time)
   09h00 (US EDT)                        11h00 (US EDT)
   Phone: +55 (11) 2101-1490             Tel.: (+1 973) 935-2100
   Replay: +55 (11) 2101-1490            Replay: (+1 973) 341-3080
   Code: Localiza                        Code: 6281987 or Localiza
   
   About Localiza Rent A Car S.A.

Localiza operates in the car rental and fleet rental business and in the fleet management and franchising of those businesses.

With 32 years of existence and 307 branches, Localiza is currently the largest car rental in Latin America in number of agencies and the pioneer in fleet rental and management business in Brazil. Localiza is part of BOVESPA's Novo Mercado and is listed under the ticker "RENT3".