PHH Corporation Noteholders Organize to Negotiate Terms

NEW YORK--Aug. 2, 2006--The Ad Hoc Committee of Noteholders of PHH Corporation , whose members are financial institutions which collectively hold an aggregate of more than $300 million of PHH's publicly issued Medium Term Notes, announced today that it has organized in order to negotiate with the Company the terms of the noteholder tender and consent solicitation which the Company prospectively announced on July 25th. Collectively, the Committee holds substantially more than 25% of each of the two tranches of notes, which are the 6% Notes due 2008 and the 7.125% Notes due 2013, respectively. The Company has acknowledged its failure to deliver financial statements as required under the indenture for the Notes.

J. Andrew Rahl, Jr. of Anderson Kill & Olick, counsel to the Ad Hoc Committee, commented that: "The Ad Hoc Committee is interested in pursuing a constructive dialogue for the benefit of all concerned. In addition to appropriate financial and other terms, the Committee is also seeking greatly enhanced information regarding the Company's financial position on a current unaudited basis until PHH completes its financial restatement."