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Avis Group Holdings, Inc. Reports Second Quarter 2000 Operating Results

25 July 2000

Earnings Per Share Up 24%

    GARDEN CITY, N.Y. - Avis today reported its results for the quarter ended 
June 30, 2000.  On a historical basis, net income and diluted earnings per share 
for the three months ended June 30, 2000 were $37.4 million and $1.05, 
respectively, compared to $27.3 million and 85 cents, respectively, for the same 
period in 1999.  Revenue for the quarter ended June 30, 2000 was $1.1 billion.

    On a historical basis, net income and diluted earnings per share for the
six months ended June 30, 2000 were $57.0 million and $1.52, respectively,
compared to $42.5 million and $1.31, respectively, for the same period in
1999.  The 1999 period included a previously reported non-recurring
$7.5 million pre-tax gain representing 13 cents diluted earnings per share,
resulting from the curtailment of the Company's defined benefit plans.
Revenue for the six months ended June 30, 2000 was $2.1 billion.

    On a pro forma basis, net income and diluted earnings per share for the
three months ended June 30, 2000 increased to $37.4 million and $1.05,
respectively, from $18.4 million and 43 cents, respectively, for the same
period in 1999.  Revenue for the quarter ended June 30, 2000 increased
4.7 percent over the comparable period in 1999.

    On a pro forma basis, net income and diluted earnings per share for the
six months ended June 30, 2000 increased to $57.0 million and $1.52,
respectively, from $23.0 million and 43 cents, respectively, for the same
period in 1999.  Revenue for the six months ended June 30, 2000 increased
4.6 percent over the comparable period in 1999.  The pro forma operating
results give effect to the acquisition of PHH North America, PHH Europe and
Wright Express ("Vehicle Management Services or VMS") as if they had occurred
on January 1, 1999.

    "During the quarter, we continued to leverage our assets, technology and
people to deliver measurable financial results to our shareholders," said A.
Barry Rand, Avis Group's Chairman and CEO.  "Our completed definitive Joint
Venture agreement with BNP Paribas is a significant milestone for Avis which
will strengthen our financial position, broaden our global reach and reaffirm
our commitment to enhance the value of Avis Group.  Overall, we had a solid
quarter and remain on track to meet our full year targets."

    Avis Group Holdings, Inc. is one of the world's leading service and
information providers of comprehensive automotive transportation and vehicle
management solutions.  Avis Group operates the second largest general-use car
rental business in the world, with locations in the United States, Canada,
Australia, New Zealand and the Latin American Caribbean region.  In 1999, the
Company acquired PHH Vehicle Management Services, the world's second largest
fleet management and leasing company, together with Wright Express, the
world's largest fleet card provider.

                          AVIS GROUP HOLDINGS, INC.
                              FINANCIAL RESULTS
              (In thousands, except share and per share amounts)
                                 (Unaudited)

                                              THREE MONTHS ENDED JUNE 30,
                                             ACTUAL             PRO FORMA (1)
                                       2000            1999          1999
    Revenue:
    Vehicle rental                 $666,597        $637,457      $637,457
    Vehicle management services:
    Vehicle leasing                 356,050              --       346,411
    Other fee based revenue          73,821              --        63,626
                                  1,096,468         637,457     1,047,494
    Costs and expenses:
    Direct operating, net           229,314         242,886       242,886
    Vehicle depreciation
     and lease charges, net         426,505         165,417       424,858
    Interest                        125,199          51,483        99,337
    Selling, general
     and administrative             186,192         120,381       185,329
                                    967,210         580,167       952,410

    EBITDA                          129,258          57,290        95,084

    Interest - acquisition debt      35,998              --        34,297
    Amortization of cost in excess
     of net assets acquired          11,762           3,177        11,762
    Non-vehicle depreciation
     and amortization                13,440           6,569        12,280
    Income before provision
     for income taxes                68,058          47,544        36,745
    Provision for income taxes       30,626          20,262        18,296
    Net income                       37,432          27,282        18,449
    Preferred stock dividends         4,667              --         4,555
    Earnings applicable to
     common stockholders            $32,765         $27,282       $13,894

    Earnings Per Share:
    Basic                             $1.05           $0.87         $0.45
    Diluted (2)                       $1.05           $0.85         $0.43

    Cash earnings per share (3)       $1.41           $0.94         $0.78

    Weighted average shares
     outstanding:
    Basic                        31,131,712      31,188,977    31,188,977
    Diluted (2)                  31,336,088      32,237,810    32,237,810

                                             SIX MONTHS ENDED JUNE 30,
                                            ACTUAL             PRO FORMA (1)
                                       2000            1999          1999
    Revenue:
    Vehicle rental               $1,255,473      $1,204,374    $1,204,374
    Vehicle management services:
    Vehicle leasing                 707,158              --       687,931
    Other fee based revenue         146,870              --       124,012
                                  2,109,501       1,204,374     2,016,317
    Costs and expenses:
    Direct operating, net           456,008         461,720       461,720
    Vehicle depreciation
     and lease charges, net         827,502         318,471       833,308
    Interest                        234,163          99,925       195,375
    Selling, general
     and administrative             366,275         231,182       359,701
                                  1,883,948       1,111,298     1,850,104

    EBITDA                          225,553          93,076       166,213

    Interest - acquisition debt      71,831              --        68,758
    Amortization of cost in
     excess of net assets acquired   23,594           6,351        23,594
    Non-vehicle depreciation
     and amortization                26,459          12,351        24,018
    Income before provision
     for income taxes               103,669          74,374        49,843
    Provision for income taxes       46,651          31,906        26,804
    Net income                       57,018          42,468        23,039
    Preferred stock dividends         9,335              --         9,110
    Earnings applicable
     to common stockholders         $47,683         $42,468       $13,929

    Earnings Per Share:
    Basic                             $1.53           $1.35         $0.44
    Diluted (2)                       $1.52           $1.31         $0.43

    Cash earnings per share (3)       $2.25           $1.49         $1.13

    Weighted average
     shares outstanding:
    Basic                        31,131,712      31,529,114    31,529,114
    Diluted (2)                  31,339,247      32,380,499    32,380,499

    (1) Presents the results of operations of the Company as if the
        acquisition of PHH North America, PHH Europe and Wright Express
        had occurred on January 1, 1999.
    (2) Includes dilutive effect of the assumed exercise of stock options.
    (3) Cash earnings per share equals earnings applicable to common
        stockholders plus amortization of cost in excess of net assets
        acquired (net of income tax benefit) divided by the weighted average
        diluted shares outstanding.