<Page>
EXHIBIT 99.3
PRO FORMA FINANCIAL INFORMATION (UNAUDITED)
The following Unaudited Pro Forma Condensed Combined Balance Sheet gives effect
to the October 1, 2001 acquisition of Galileo International, Inc. ("Galileo").
The following Unaudited Pro Forma Condensed Combined Statements of Operations
give effect to the acquisition of Galileo and the Company's March 1, 2001
acquisition of Avis Group Holdings, Inc. ("Avis"). Both transactions have been
accounted for under the purchase method of accounting.
Since the acquisition of Avis occurred on March 1, 2001, the financial position
of Avis is included in the Company's historical balance sheet as of June 30,
2001. The Unaudited Pro Forma Condensed Combined Balance Sheet assumes the
acquisition of Galileo occurred on June 30, 2001. The Unaudited Pro Forma
Condensed Combined Statements of Operations assume the acquisitions of Avis and
Galileo occurred on January 1, 2000. The unaudited pro forma financial data is
based on the historical consolidated financial statements of the Company, Avis
and Galileo under the assumptions and adjustments set forth in the accompanying
explanatory notes.
The Unaudited Pro Forma Condensed Combined Statement of Operations for the year
ended December 31, 2000 also gives effect to various significant finance-related
activities that occurred during the first quarter of 2001 (the "Financing
Activities"), which comprise the issuance of debt securities (net of debt
retirements) and equity securities, the conversion of PRIDES to CD common stock
and the issuance of zero-coupon senior convertible notes. The Unaudited Pro
Forma Condensed Combined Statement of Operations for the year ended December 31,
2000 assumes the Financing Activities occurred on January 1, 2000.
For purposes of developing the Unaudited Pro Forma Condensed Combined Balance
Sheet, Galileo's assets and liabilities were recorded at their estimated fair
market values and the excess purchase price was assigned to goodwill. These
fair market values are based on preliminary estimates. Accordingly, the pro
forma adjustments may be subject to revision once appraisals, evaluations and
other studies of the fair value of Galileo's assets and liabilities are
completed. In addition, although goodwill and certain other intangible assets
arising from this acquisition will not be amortized pursuant to Statement of
Financial Accounting Standard ("SFAS") No. 142, "Goodwill and Other
Intangible Assets," annual amortization of goodwill and certain other
intangibles arising from the acquisition of $47 million and $16 million,
respectively, has been reflected in the accompanying Unaudited Pro Forma
Condensed Combined Statements of Operations since the acquisition was assumed
to have occurred on January 1, 2000 (prior to the effective date of such
standard) for purposes of preparing the Unaudited Pro Forma Condensed
Combined Statements of Operations.
Since Avis was consolidated with the Company as of March 1, 2001, the results
of operations of Avis between January 1, 2001 and February 28, 2001 were
combined with the Company's results of operations to report the combined pro
forma results of operations for the six months ended June 30, 2001. The pro
forma results of the combined company were then added to Galileo's results of
operations for the six months ended June 30, 2001 and for the year ended
December 31, 2000, subject to certain pro forma adjustments, to provide the
Unaudited Pro Forma Condensed Combined Statements of Operations. All
intercompany transactions were eliminated on a pro forma basis. Historically,
Avis paid the Company for services the Company provided related to call
centers and information technology and for the use of the Company's
trademarks, and Avis paid Galileo for services Galileo provided related to
reservations for vehicle rentals.
The pro forma adjustments relating to the acquisition of Galileo reflect the
disbursement of a combination of CD common stock and cash aggregating $20.91 for
each share of Galileo common stock outstanding, the fair value of CD common
stock options exchanged with certain fully-vested Galileo stock options of
approximately $32 million and estimated transaction costs and expenses of $78
million. Approximately $1,482 million of the merger consideration was funded
through the issuance of CD common stock, with the remainder being financed by
available cash. In addition, Cendant repaid approximately $540 million of
Galileo's net debt at closing with available cash ($615 million total debt based
on June 30, 2001 balance).
In August 2000, Avis contributed its European vehicle management and leasing
business ("PHH Europe") to a newly formed joint venture in exchange for cash,
settlement of intercompany debt and a 20% interest in the venture
1
<Page>
(the "PHH Europe Transaction"). The accompanying Supplemental Unaudited Pro
Forma Condensed Combined Statement of Operations of Avis for the year ended
December 31, 2000 has been adjusted to reflect the PHH Europe Transaction.
In connection with acquisitions entered into, the Company intends to review
acquired operations, which may result in a plan to realign or reorganize certain
of those operations. The costs of implementing such a plan, if it were to occur,
have not been reflected in the accompanying pro forma financial information. The
impact of a potential realignment or reorganization could increase or decrease
the amount of goodwill and intangible assets and the related amortization in the
accompanying pro forma financial information. Additionally, the Unaudited Pro
Forma Condensed Combined Statements of Operations exclude any benefits that
might result from the acquisitions due to synergies that may be derived or from
the elimination of duplicate efforts.
The Company's management believes that the assumptions used provide a reasonable
basis on which to present the unaudited pro forma financial information. The
Company has completed other acquisitions and dispositions which are not
significant and, accordingly, have not been included in the accompanying
unaudited pro forma financial information. The unaudited pro forma financial
information may not be indicative of the financial position or results of
operations that would have occurred if the acquisitions of Avis and Galileo and
the Financing Activities had been in effect on the dates indicated or which
might be obtained in the future.
The unaudited pro forma financial information should be read in conjunction with
the historical consolidated financial statements and accompanying notes thereto
for the Company, Avis and Galileo. Certain reclassifications have been made to
the historical amounts of Galileo to conform with the Company's classification.
2
<Page>
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
AS OF JUNE 30, 2001
(in millions)
<Table>
<Caption>
PURCHASE
HISTORICAL HISTORICAL AND OTHER COMBINED
CENDANT GALILEO ADJUSTMENTS PRO FORMA
-------- -------- ----------- ---------
ASSETS
Current assets
Cash and cash equivalents $ 1,913 $ 18 $ (437)(a) $ 879
(615)(b)
Receivables, net 1,392 253 -- 1,645
Other current assets 1,058 55 -- 1,113
-------- -------- -------- --------
Total current assets 4,363 326 (1,052) 3,637
Property and equipment, net 1,617 392 22 (a) 2,031
Stockholder litigation settlement trust 850 -- -- 850
Deferred income taxes 1,268 -- -- 1,268
Franchise agreements, net 1,506 -- -- 1,506
Goodwill, net 5,507 307 1,555 (a) 7,369
Other intangibles, net 805 408 (8)(a) 1,205
Other assets 1,758 135 (49)(a) 1,844
-------- -------- -------- --------
Total assets exclusive of assets under programs 17,674 1,568 468 19,710
-------- -------- -------- --------
Assets under management and mortgage programs
Mortgage loans held for sale 829 -- -- 829
Relocation receivables 332 -- -- 332
Vehicle-related, net 8,293 -- -- 8,293
Timeshare receivables 301 -- -- 301
Mortgage servicing rights 1,858 -- -- 1,858
-------- -------- -------- --------
11,613 -- -- 11,613
-------- -------- -------- --------
TOTAL ASSETS $ 29,287 $ 1,568 $ 468 $ 31,323
======== ======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and other current liabilities $ 2,749 $ 243 $ -- $ 2,992
Current portion of long-term debt 504 194 (181)(b) 517
Deferred income 1,011 -- -- 1,011
Deferred income taxes -- -- 2 (a) 2
-------- -------- -------- --------
Total current liabilities 4,264 437 (179) 4,522
Long-term debt 4,365 456 (434)(b) 4,387
Stockholder litigation settlement 2,850 -- -- 2,850
Other liabilities 681 157 85 (a) 923
-------- -------- -------- --------
Total liabilities exclusive of liabilities under programs 12,160 1,050 (528) 12,682
-------- -------- -------- --------
Liabilities under management and mortgage programs
Debt 9,993 -- -- 9,993
Deferred income taxes 1,030 -- -- 1,030
-------- -------- -------- --------
11,023 -- -- 11,023
-------- -------- -------- --------
Mandatorily redeemable preferred interest in a subsidiary 375 -- -- 375
-------- -------- -------- --------
Stockholders' equity 5,729 518 996 (c) 7,243
-------- -------- -------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 29,287 $ 1,568 $ 468 $ 31,323
======== ======== ======== ========
</Table>
SEE ACCOMPANYING NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET.
3
<Page>
NOTES TO UNAUDITED PRO FORMA
CONDENSED COMBINED BALANCE SHEET
AS OF JUNE 30, 2001
(DOLLARS IN MILLIONS)
The accompanying Unaudited Pro Forma Condensed Combined Balance Sheet was
prepared to reflect the acquisition of Galileo, which was accounted for under
the purchase method of accounting. The purchase price of $1,951 (including $78
of estimated transaction costs and expenses directly attributable to the
acquisition of Galileo and $32 related to the fair value of CD common stock
options issued in exchange for Galileo stock options) was based on acquiring
100% of the Galileo common stock outstanding at $20.91 per share.
(a) Represents the excess of the purchase price over the preliminary estimate
of the fair value of the identifiable net assets acquired, calculated as
follows:
<Table>
Calculation of acquisition goodwill
Cash consideration $ 359
Issuance of CD common stock 1,482
Fair value of CD common stock options issued in exchange for
Galileo stock options 32
Transaction costs and expenses 78
-------
Total purchase price 1,951
-------
Preliminary estimate of fair value of identifiable net assets acquired
Historical book value of assets acquired net of liabilities assumed 518
Elimination of Galileo goodwill (307)
Preliminary estimate of fair value adjustments to identifiable intangible assets (8)
Preliminary estimate of fair value adjustments to property and equipment 22
Preliminary estimate of fair value adjustments to other assets ($49) and other liabilities ($85) (134)
Deferred tax liability on fair value adjustments and transaction costs and expenses (2)
-------
Preliminary estimate of fair value of identifiable net assets acquired 89
-------
Acquisition goodwill $ 1,862
=======
Calculation of acquisition goodwill adjustment
Acquisition goodwill $ 1,862
Historical Galileo goodwill (307)
-------
Acquisition goodwill adjustment $ 1,555
=======
</Table>
The pro forma financial information presented herein reflects annual
amortization of goodwill and certain other intangibles arising from the
acquisition of $47 million and $16 million, respectively, which will not be
reflected in the Company's reported results of operations due to the issuance
of SFAS No. 142, as previously discussed.
(b) Represents the June 30, 2001 balance associated with Galileo's long-term
debt that was repaid at closing.
(c) Represents the issuance of CD common stock valued at $1,482 in exchange
for outstanding shares of Galileo common stock, the issuance of CD common
stock options valued at $32 in exchange for Galileo stock options and the
elimination of Galileo equity balances aggregating $518.
4
<Page>
<Table>
<Caption>
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
HISTORICAL
AVIS
JAN 1- AVIS GALILEO
HISTORICAL FEB 28, PURCHASE ADJUSTED HISTORICAL PURCHASE COMBINED
CENDANT 2001 ADJUSTMENTS CENDANT GALILEO ADJUSTMENTS PRO FORMA
---------- ------ ----------- ------- ------- ----------- ---------
REVENUES
Membership and service fees, net $2,431 $ 27 $ (34)(a) $2,424 $ -- $ -- $2,424
Vehicle-related 1,433 594 -- 2,027 -- -- 2,027
Global distribution services -- -- -- -- 867 (5)(f) 862
Other 25 20 -- (b) 45 46 -- 91
------ ------ ------ ------ ------ ------ ------
Net revenues 3,889 641 (34) 4,496 913 (5) 5,404
EXPENSES
Operating 1,239 174 (34)(a) 1,379 206 (5)(f) 1,580
Selling, general and administrative 895 115 -- 1,010 391 (15)(g) 1,386
Vehicle depreciation, lease charges and interest, net 725 350 -- 1,075 -- -- 1,075
Non-vehicle depreciation and amortization 222 23 2 (d) 247 122 (30)(g) 339
Other charges, net 212 -- -- 212 -- -- 212
Non-vehicle interest, net 122 12 1 (c) 135 19 (21)(h) 133
Other, net -- -- -- -- 6 -- 6
------ ------ ------ ------ ------ ------ ------
Total expenses 3,415 674 (31) 4,058 744 (71) 4,731
------ ------ ------ ------ ------ ------ ------
Net gain on dispositions of businesses 435 -- -- 435 -- -- 435
------ ------ ------ ------ ------ ------ ------
INCOME (LOSS) BEFORE INCOME TAXES, MINORITY INTEREST
AND EQUITY IN HOMESTORE.COM 909 (33) (3) 873 169 66 1,108
Provision (benefit) for income taxes 336 (10) (2)(e) 324 74 23(i) 421
Minority interest, net of tax 18 -- -- 18 -- -- 18
Losses related to equity in Homestore.com, net of tax 36 -- -- 36 -- -- 36
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ------ ------ ------ ------ ------ ------ ------
ACCOUNTING CHANGE $ 519 $ (23) $ (1) $ 495 $ 95 $ 43 $ 633
====== ====== ====== ====== ====== ====== ======
CD COMMON STOCK INCOME PER SHARE
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE
Basic $ 0.61 $ 0.58 $ 0.66
Diluted 0.58 0.55 0.63
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 820 820 117(j) 937
Diluted 868 868 117(j) 985
MOVE.COM COMMON STOCK INCOME PER SHARE
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE
Basic $ 9.94 $ 9.94 $ 9.94
Diluted 9.81 9.81 9.81
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 2 2 2
Diluted 2 2 2
SEE ACCOMPANYING NOTES TO UNAUDITED PRO FORMA CONDENSED
COMBINED STATEMENT OF OPERATIONS.
</Table>
5
<Page>
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
THE FOLLOWING PRO FORMA ADJUSTMENTS RELATE TO THE ACQUISITION OF AVIS AND THE
FINANCING ACTIVITIES.
(a) Represents the elimination of amounts paid by Avis to the Company for
services provided related to call centers and information technology and
for the use of trademarks.
(b) Represents the elimination of the Company's earnings attributable to its
investment in Avis for which the combined effect is zero.
(c) Represents interest expense on debt issued to finance the acquisition of
Avis ($7), net of the amortization of the fair value adjustment on
acquired debt ($4) and the reversal of Avis' amortization of debt-related
costs ($2).
(d) Represents the amortization of goodwill generated on the excess of fair
value over the net assets acquired on a straight-line basis over 40 years,
net of the reversal of Avis' amortization of pre-acquisition goodwill and
other identifiable intangibles resulting from the allocation of purchase
price on a straight-line basis over 20 years.
(e) Represents the income tax effect of the purchase adjustments and other pro
forma adjustments at an estimated statutory rate of 38.5% (not including
adjustments for non-deductible goodwill).
THE FOLLOWING PRO FORMA ADJUSTMENTS RELATE TO THE ACQUISITION OF GALILEO.
(f) Represents the elimination of amounts paid by Avis to Galileo for services
provided related to reservations for vehicle rentals.
(g) Represents the amortization of goodwill generated on the excess of the
purchase price over the preliminary estimate of the fair value of
identifiable net assets acquired on a straight-line basis over 40 years
($23), the amortization of the estimated identifiable intangibles on a
straight-line basis over 25 years ($8) and the amortization of estimated
value of property and equipment ($61), net of the reversal of Galileo's
amortization of pre-acquisition goodwill ($28), other identifiable
intangibles ($22), other assets ($15) and property and equipment ($72).
(h) Represents interest expense relating to the Galileo long-term debt that
was repaid at closing.
(i) Represents the income tax effect of the purchase adjustments and other pro
forma adjustments at an estimated statutory rate of 38.5% (not including
adjustments for non-deductible goodwill).
(j) Represents the issuance of approximately 117 million shares of CD common
stock used to fund a portion of the acquisition price of Galileo.
6
<Page>
<Table>
<Caption>
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2000
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
AVIS OTHER
HISTORICAL ADJUSTED PURCHASE PRO FORMA ADJUSTED HISTORICAL
CENDANT AVIS (*) ADJUSTMENTS ADJUSTMENTS CENDANT GALILEO
----------- -------- ----------- ----------- ---------- ----------
REVENUES
Membership and service fees, net $ 4,512 $ 155 $ (173)(a) $ -- $ 4,494 $ --
Vehicle-related -- 3,783 -- -- 3,783 --
Global distribution services -- -- -- -- -- 1,561
Other 147 151 (39)(b) -- 259 82
------- ------- ------- ------- ------- -------
Net revenues 4,659 4,089 (212) -- 8,536 1,643
EXPENSES
Operating 1,426 966 (173)(a) -- 2,219 368
Vehicle depreciation, lease charges and interest, net -- 1,671 -- -- 1,671 --
Selling, general and administrative 1,508 637 -- -- 2,145 678
Non-vehicle depreciation and amortization 352 74 16(c) -- 442 241
Other charges, net 111 -- -- -- 111 28
Non-vehicle interest, net 148 482 6(d) 54(g, i) 690 45
Other, net -- -- -- -- -- 17
------- ------- ------- ------- ------- -------
Total expenses 3,545 3,830 (151) 54 7,278 1,377
------- ------- ------- ------- ------- -------
Net loss on dispositions of businesses (8) -- (35)(e) -- (43) --
------- ------- ------- ------- ------- -------
Income before income taxes, minority interest and
equity in Homestore.com 1,106 259 (96) (54) 1,215 266
Provision for income taxes 362 117 (30)(f) (20)(f) 429 117
Minority interest, net of tax 84 7 -- (66)(h) 25 --
Income before extraordinary loss and cumulative ------- ------- ------- ------- ------- -------
effect of accounting change $ 660 $ 135 $ (66) $ 32 $ 761 $ 149
======= ======= ======= ======= ======= =======
CD COMMON STOCK INCOME PER SHARE
INCOME BEFORE EXTRAORDINARY LOSS AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE
Basic $ 0.92 -- -- -- $ 0.92 --
Diluted 0.89 -- -- -- 0.90 --
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 724 -- -- 107(j) 831 --
Diluted 762 -- -- 107(j) 869 --
MOVE.COM COMMON STOCK LOSS PER SHARE
LOSS BEFORE EXTRAORDINARY LOSS AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE
Basic $ (1.76) -- -- -- $ (1.76) --
Diluted (1.76) -- -- -- (1.76) --
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 3 -- -- -- 3 --
Diluted 3 -- -- -- 3 --
<Caption>
GALILEO
PURCHASE COMBINED
ADJUSTMENTS PRO FORMA
-------------- ---------
REVENUES
Membership and service fees, net $ -- $ 4,494
Vehicle-related -- 3,783
Global distribution services (12)(k) 1,549
Other -- 341
------ -------
Net revenues (12) 10,167
EXPENSES
Operating (12)(k) 2,575
Vehicle depreciation, lease charges and interest, net -- 1,671
Selling, general and administrative (23)(l) 2,800
Non-vehicle depreciation and amortization (57)(l) 626
Other charges, net -- 139
Non-vehicle interest, net (47)(m) 688
Other, net -- 17
------ -------
Total expenses (139) 8,516
------ -------
Net loss on dispositions of businesses -- (43)
------ -------
Income before income taxes, minority interest and
equity in Homestore.com 127 1,608
Provision for income taxes 47(n) 593
Minority interest, net of tax -- 25
Income before extraordinary loss and cumulative ------- -------
effect of accounting change $ 80 $ 990
======= =======
CD COMMON STOCK INCOME PER SHARE
INCOME BEFORE EXTRAORDINARY LOSS AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE
Basic -- $ 1.05
Diluted -- 1.02
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 117(o) 948
Diluted 117(o) 986
MOVE.COM COMMON STOCK LOSS PER SHARE
LOSS BEFORE EXTRAORDINARY LOSS AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE
Basic -- $ (1.76)
Diluted -- (1.76)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic -- 3
Diluted -- 3
</Table>
----------
(*) See Supplemental Unaudited Condensed Combined Statement of Operations and
Notes included herein.
SEE ACCOMPANYING NOTES TO UNAUDITED PRO FORMA CONDENSED
COMBINED STATEMENT OF OPERATIONS.
7
<Page>
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2000
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
THE FOLLOWING PRO FORMA ADJUSTMENTS RELATE TO THE ACQUISITION OF AVIS AND THE
FINANCING ACTIVITIES.
(a) Represents the elimination of amounts paid by Avis to the Company for
services provided related to call centers and information technology and
for the use of trademarks.
(b) Represents the elimination of the Company's earnings attributable to its
investment in Avis.
(c) Represents the amortization of goodwill generated on the excess of fair
value over the net assets acquired on a straight-line basis over 40 years,
net of the reversal of Avis' amortization of pre-acquisition goodwill and
other identifiable intangibles resulting from the allocation of purchase
price on a straight-line basis over 20 years.
(d) Represents interest expense on debt issued to finance the acquisition of
Avis ($44), net of amortization of the fair value adjustment on acquired
debt ($25) and the reversal of Avis' amortization of debt related costs
($13).
(e) Represents the reversal of a gain of $35 million recorded by the Company,
which represents the recognition of a portion of its previously recorded
deferred gain from the 1999 sale of its fleet business due to the
disposition of PHH Europe by Avis in August 2000.
(f) Represents the income tax effect of the purchase adjustments and other pro
forma adjustments at an estimated statutory rate of 37.5% (not including
adjustments for non-deductible goodwill), except Note (e) above where the
tax effect was approximately 2%, which represented the rate at which taxes
were provided on the related gain.
(g) Represents interest expense relating to the issuance of the zero-coupon
senior convertible notes, medium-term notes, borrowing under a $650
million term loan agreement and the repayment of an existing term loan,
net of interest expense allocated to the acquisition of Avis (See Note (d)
above).
(h) Represents the reduction in preferred stock dividends resulting from the
conversion of the PRIDES to CD common stock.
(i) No adjustment has been made to reduce interest expense for interest income
on the incremental cash of $1,587 raised through the Financing Activities.
Assuming the incremental cash was invested at 5%, which represents the
Company's current rate for cash investments, interest expense would have
been reduced by $79. Additionally, income before extraordinary loss and
cumulative effect of accounting change and income per share before
extraordinary loss and cumulative effect of accounting change would have
improved by $49 and $0.06, respectively.
(j) Represents the issuance of CD common stock of 61 million shares and 46
million shares relating to the conversion of PRIDES to CD common stock and
the issuance of CD common stock, respectively.
THE FOLLOWING PRO FORMA ADJUSTMENTS RELATE TO THE ACQUISITION OF GALILEO.
(k) Represents the elimination of amounts paid by Avis to Galileo for services
provided related to reservations for vehicle rentals.
(l) Represents the amortization of goodwill generated on the excess of the
purchase price over the preliminary estimate of the fair value of
identifiable net assets acquired on a straight-line basis over 40 years
($47), the amortization of the estimated identifiable intangibles on a
straight-line basis over 25 years ($16) and the amortization of the
estimated value of property and equipment ($121), net of the reversal of
Galileo's amortization of pre-acquisition goodwill ($47), other
identifiable intangibles ($39) and property and equipment ($155).
(m) Represents interest expense relating to the Galileo long-term debt that
was repaid at closing.
(n) Represents the income tax effect of the purchase adjustments and other pro
forma adjustments at an estimated statutory rate of 37.5% (not including
adjustments for non-deductible goodwill).
(o) Represents the issuance of approximately 117 million shares of CD common
stock used to fund a portion of the acquisition price of Galileo.
8
<Page>
SUPPLEMENTAL UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2000
(IN MILLIONS)
The unaudited pro forma financial data presented below was prepared to reflect
the historical consolidated financial statements of Avis, excluding the PHH
Europe Transaction. Avis will receive an annual license fee in connection with
the PHH Europe Transaction from the joint venture for the license of the PHH
fleet management technology, PHH interactive. Avis utilized the proceeds of the
PHH Europe Transaction to reduce Avis' indebtedness and to pay transaction
costs.
<Table>
<Caption>
HISTORICAL SALE OF PRO FORMA ADJUSTED
AVIS PHH EUROPE(a) ADJUSTMENTS AVIS
---------- ------------- ----------- --------
Revenues
Service fees, net $ 241 $ (86) $ -- $ 155
Vehicle rental 2,467 -- -- 2,467
Vehicle leasing and other fees 1,389 (73) -- 1,316
Other 146 -- 5 (b) 151
------ ------ ------ ------
Net revenues 4,243 (159) 5 4,089
EXPENSES
Operating 966 -- -- 966
Vehicle depreciation and lease charges 1,695 (24) -- 1,671
Selling, general and administrative 693 (56) -- 637
Interest, net 577 (37) (58)(c) 482
Depreciation and amortization 89 (12) (3)(d) 74
------ ------ ------ ------
Total expenses 4,020 (129) (61) 3,830
INCOME (LOSS) BEFORE INCOME TAXES AND MINORITY INTEREST 223 (30) 66 259
Provision (benefit) for income taxes 95 (3) 25(e) 117
Minority interest 7 -- -- 7
------ ------ ------ ------
INCOME (LOSS) BEFORE EXTRAORDINARY LOSS AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE $ 121 $ (27) $ 41 $ 135
====== ====== ====== ======
SEE ACCOMPANYING NOTES TO SUPPLEMENTAL UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENT OF OPERATIONS.
</Table>
9
<Page>
NOTES TO SUPPLEMENTAL UNAUDITED PRO FORMA
CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2000
(DOLLARS IN MILLIONS)
(a) Represents adjustments to pro forma the results of operations of PHH
Europe, assuming that the PHH Europe Transaction occurred on January 1,
2000.
(b) Represents fleet management technology fee income and the equity in the
earnings of the joint venture formed pursuant to the PHH Europe
Transaction, net of the amortization of the excess of cost over the assets
acquired.
(c) Represents a reduction in interest expense resulting from the retirement
of acquisition debt and revolving credit facilities related to the
application of proceeds of $1,053 from the PHH Europe Transaction.
(d) Represents a decrease in amortization expense relating to goodwill
generated from the PHH Europe Transaction, net of the reversal of PHH
Europe goodwill.
(e) Represents the income tax effect of the pro forma adjustments at an
estimated statutory rate of 39% (not including adjustments for
non-deductible goodwill).
10