---

Avis, Washington Lawyers' Committee Reach Settlement in Lawsuit

22 December 1997

Avis, Washington Lawyers' Committee Reach Settlement in Lawsuit

    GARDEN CITY, N.Y., Dec. 22 -- Avis Rent A Car System, Inc.
and the Washington Lawyers' Committee for Civil Rights and Urban
Affairs today announced a settlement dismissing all claims against Avis in
Pugh et al. v. Avis Rent A Car System, Inc. and New Hanover Rent-A-Car, Inc.
The settlement is subject to approval by the U.S. District Court in
Wilmington, N.C.
    John P. Relman of the Washington Lawyers' Committee for Civil Rights and
Urban Affairs, lead counsel for the plaintiffs, stated that "since the
inception of this lawsuit, our organization has engaged in an exhaustive
investigation of Avis.  Based on our extensive investigation and review, which
involved numerous interviews, depositions, and review of thousands of
documents, we believe that the evidence does not show a pattern or practice of
discrimination by Avis at corporate or independent licensee locations across
the country, and we believe that the alleged problems associated with the
locations operated by New Hanover, an independent single licensee, were
aberrational.  We are convinced that Avis and its current management are
committed to a zero-tolerance of discrimination, and we applaud the new
management of Avis for its commitment."
    R. Craig Hoenshell, Chairman and CEO of Avis Rent A Car, Inc., said, "We
are pleased to be putting this litigation behind us, and appreciate the
cooperative spirit of plaintiffs' counsel in developing a solution to this
issue.  And, on behalf of the 17,000 employees of Avis, we are gratified by
the conclusions of the plaintiffs' counsel after his extensive investigation.
Our new management team has moved aggressively to enforce our policy of 'zero
tolerance' of discrimination and to promote diversity and inclusiveness among
Avis' workforce.  We will continue building on the progress we have made and
ensure that every Avis customer receives the highest level of service and
respect regardless of race, religion or national origin."
    Under the settlement agreement, Avis neither admits nor is found to have
engaged in any discriminatory acts or wrongdoing alleged to have been
committed by New Hanover, nor to have condoned such acts.  Avis has maintained
this position since the commencement of the litigation in May, 1996.  Avis has
agreed to contribute $1.85 million to a settlement fund for, and pay legal and
administrative costs associated with processing claims to, a class consisting
of all African American customers allegedly denied a rental by New Hanover on
account of their race.
    The Pugh action will continue against New Hanover.

SOURCE  Avis Rent A Car System, Inc.