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Cendant Announces Preliminary Proposal to Acquire Outstanding Avis Shares

15 August 2000

Cendant Announces Preliminary Proposal to Acquire Outstanding Avis Shares

    NEW YORK - Cendant Corporation announced today that it has submitted to the 
Board of Directors of Avis Group Holdings, Inc. a preliminary, non-binding 
proposal to acquire all of the outstanding shares of Avis that are not currently 
owned by Cendant at a price of $29 per share in cash.  Approximately 25.6
million shares of Avis common stock are not owned by Cendant. Accordingly, the 
transaction, if completed, would have an equity value of approximately $750 
million.

    Cendant Corporation currently owns approximately 18% of Avis' outstanding
common shares and also owns preferred stock of a subsidiary of Avis that is
convertible into Avis shares.  Based upon current conversion rates and
assuming certain earnings and market price thresholds are met, such preferred
shares are convertible into a combination of non-voting and voting Avis common
shares that would result in Cendant having up to a 20% voting interest in Avis
and an approximately 33% economic interest.

    Cendant Corporation is a global provider of real estate, travel and direct
marketing related consumer and business services. The Company's core
competencies include building franchise systems, providing outsourcing
solutions and direct marketing. As a franchiser, Cendant is among the world's
leading franchisers of real estate brokerage offices, hotels, rental car
agencies, and tax preparation services. The Company's real estate-related
operations also include Move.com Group, Cendant's relocation, real estate and
home-related services portal on the Internet. As a provider of outsourcing
solutions, Cendant is a major provider of mortgage services to consumers, the
global leader in employee relocation, and the world's largest vacation
exchange service. In direct marketing, Cendant provides access to insurance,
travel, shopping, auto, and other services primarily to customers of its
affinity partners. In addition, Cendant Internet Group is pursuing a
convergence strategy for the Company's off-line and online businesses.  Other
business units include NCP, the UK's largest private car park operator, and
Wizcom, an information technology services provider. Headquartered in New
York, NY, the Company has approximately 28,000 employees and operates in over
100 countries.

    Avis is one of the world's leading service and information providers of
comprehensive automotive transportation and vehicle management solutions. Avis
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, Avis 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.  80% of
the European operations of Avis' fleet management and leasing company were
sold to BNP-Paribas on August 9, 2000.