HFS Buys Interest in Avis from GM

09/03/96

Business Wire has reported that HFS Incorporated announced having signed an agreement with General Motors Corporation to buy their equity interest in Avis Incorporated. HFS will buy Avis for approximately $800 million and has executed definitive agreements with the Avis Employee Stock Ownership Trust and Avis Inc.

In late September employee participants in the Avis Employee Stock Ownership Plan will vote on HFS' acquisition bid. If the employees decide in favor of the plan, HFS will seek the required regulatory approvals and complete fleet financing. The transaction is expected to close in October 1996.

HFS Inc. is the world's largest franchiser of hotels and residential real estate brokerage offices. The company has nearly 5,300 Days Inn, Howard Johnson, Knights Inn, Park Inn, Ramada, Super 8, Travelodge, Villager Lodge and Wingate Inn franchised hotels with approximately 490,000 rooms in the United States, Canada, Latin America and Europe. HFS has about 11,200 franchised CENTURY 21, Coldwell Banker and ERA brand real estate offices with more than 160,000 brokers and agents in the United States, Mexico, Canada, Puerto Rico, Europe, Africa and the Asia/Pacific region.

Paul Dever -- The Auto Channel