FOR IMMEDIATE RELEASE



CENDANT CONFIRMS ESTIMATE OF 1997 ACCOUNTING RESTATEMENT



PARSIPPANY,  NJ AND STAMFORD,  CT, JULY 28, 1998--Cendant  Corporation (NYSE:CD)
today  announced that the Audit Committee of its Board of Directors had received
an oral summary of the  conclusions  of Arthur  Andersen LLP's forensic audit of
the accounting records of the former CUC International. Arthur Andersen reported
that its  investigation  was  virtually  complete.  Deloitte  & Touche  LLP also
reported  on the  status of its audit and  indicated  that it was  substantially
complete.  Their conclusions were consistent with the Company's July 14 $0.22 to
$0.28 per share  estimate  of the  aggregate  restatement  of net income  before
one-time  and   extraordinary   items   required  to  correct  1997   accounting
irregularities and accounting errors.

The Company also now expects the  restatement  will reverse  significantly  more
1997  one-time  merger  charges than the $200 million  amount  ($0.22 per share)
estimated on July 14. This reversal of one-time  merger charges will not benefit
1997 net income before one-time and extraordinary items. It will, however,  have
the effect of further  reducing the impact of the restatement on 1997 net income
and on Cendant's shareholders' equity.

Cendant  expects  to  issue  full  restated  and  audited  historical  financial
statements in early August.  Deloitte & Touche acts as  independent  auditors to
Cendant  and has  replaced  Ernst & Young as the  auditor  of  these  historical
statements.

Arthur Andersen's forensic audit was commissioned by Willkie Farr & Gallagher as
part of its overall investigation of the accounting  irregularities on behalf of
the Audit Committee of the Cendant Board. The Audit  Committee's  report of that
investigation  should be complete in late August.  Certain matters  discussed in
the news  release  are  forward-looking  statements,  as defined in the  Private
Securities  Litigation Reform Act of 1995. Such  forward-looking  statements are
subject to a number of known and unknown risks and uncertainties  including, but
not limited to, the outcome of the Audit Committee's investigation;  uncertainty
as to the Company's future  profitability;  the Company's ability to develop and
implement   operational   and  financial   systems  to  manage  rapidly  growing
operations;  competition in the Company's existing and potential future lines of
business;  the Company's ability to integrate and operate successfully  acquired
businesses and the risks associated with such businesses;  the Company's ability
to obtain financing on acceptable terms to finance the Company's growth strategy
and for the  Company to  operate  within the  limitations  imposed by  financing
arrangements; uncertainty as to the future profitability of acquired businesses;
and other factors.  Other factors and assumptions not identified above were also
involved in the derivation of these forward-looking  statements, and the failure
of such other assumptions to be realized as well as other factors may also cause
actual results to differ materially from those projected. The Company assumes no
obligation to update these forward-looking statements to reflect actual results,
changes   in   assumptions   or  changes  in  other   factors   affecting   such
forward-looking statements.

Cendant  (NYSE:CD)  is the world's  premier  provider of consumer  and  business
services.  Cendant  operates in three principal  segments:  Alliance  Marketing,
Travel and Real Estate Services.  Headquartered in Stamford,  CT and Parsippany,
NJ, the company has more than 40,000  employees,  operates in over 100 countries
and makes approximately 100 million customer contacts annually.

Media Contacts:
Jim Fingeroth/Roanne Kulakoff
Kekst and Company
(212) 521-4800

Investor Contact:
David M. Johnson
(973) 496-7909