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Avis Group Closes JV Transaction; Retires $1 Billion Term Debt

11 August 2000

Company Announces Stock Repurchase Program

    GARDEN CITY, N.Y. - Avis Group Holdings, Inc. announced Thursday the 
following major initiatives that reflect the Company's continued effort to 
build value for its shareholders:

    -- Avis Group received $800 million in cash plus settlement of
       inter-company indebtedness from the closing of its joint venture
       transaction with BNP Paribas.  Avis will retain a 20% stake in the
       global alliance, creating one of the world's leading vehicle management
       solutions brands in North America and Europe.

    -- With the proceeds from its accretive alliance with BNP Paribas, Avis
       Group has retired all of the Company's outstanding term debt that was
       borrowed to fund the original VMS transaction.  The elimination of the
       $1 billion term debt dramatically improves the Company's financial
       leverage and minimizes its exposure to interest rate changes.  The
       remaining non-fleet obligations will consist of the $500 million senior
       subordinated notes, $380 million preferred stock and the Company's
       revolving credit facility.

    -- Avis Group's Board of Directors has authorized the Company to
       repurchase up to $100 million of its common stock.  Currently, there
       are 31.3 million shares of Avis Group issued and outstanding.  This
       share repurchase initiative will be funded with ongoing cash flow from
       operations.  The timing and amount of share repurchases will be subject
       to market and business conditions.

    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.