<Page>
EXHIBIT 99
[CENDANT LOGO]
CENDANT REPORTS RESULTS FOR THE SECOND QUARTER OF 2003, EXCEEDING PROJECTIONS
2Q 2003 EPS from Continuing Operations Increased 61% to $0.37
Versus $0.23 in 2Q 2002
Net Cash Provided By Operating Activities for 2Q 2003 Was $1.2 Billion
Free Cash Flow for 2Q 2003 Was $751 Million
2003 EPS from Continuing Operations Projection Raised to $1.37 - $1.39
NEW YORK, NY, JULY 21, 2003 - Cendant Corporation (NYSE: CD) today reported
second quarter 2003 EPS from Continuing Operations of $0.37, versus $0.23 in
second quarter 2002, an increase of 61%. This result exceeded the Company's
prior projection of $0.35 by $0.02.
As a result of the better than expected second quarter results, including
improving travel trends, the Company raised its projections for 2003. These
projections reflect continued strength in the residential real estate and
mortgage origination markets and an assumption that travel volumes continue to
recover in the third quarter, balanced by the challenge of the current economic
climate. Based on these expectations, the Company now projects full year 2003
EPS from Continuing Operations of $1.37 - $1.39, an increase of approximately
37% year over year, versus its prior projection of $1.35 - $1.37. The Company
forecasts 2003 Net Cash Provided by Operating Activities of between $4.5 and
$5.0 billion and free cash flow of at least $2 billion.
Cendant's Chairman, President and CEO, Henry R. Silverman, stated: "Following
the conclusion of the major combat in Iraq, travel trends began to improve
faster than we expected, enabling us to exceed our projections for the quarter.
Our diversified portfolio served us well, generating better than expected
results in the face of a very challenging travel environment, as our real estate
businesses continued to generate strong organic growth.
"We expect that the Company will generate $2 billion or more in free cash flow
per year for the foreseeable future. Indeed, as a result of the new federal tax
laws and other initiatives, we do not expect to be a U.S. cash taxpayer until at
least 2007. We will continue to deploy our cash primarily to reduce corporate
debt and repurchase common stock and, as previously announced, in first quarter
2004 we will begin paying a quarterly cash dividend on our common shares."
<Page>
SECOND QUARTER ACHIEVEMENTS
- ---------------------------
The Company made considerable progress towards its cash flow generation, debt
reduction and share repurchase goals during the quarter:
o Generated Net Cash Provided by Operating Activities of $1.2 billion and
free cash flow of $751 million. See Table 7 for a description of free cash
flow and reconciliation to net cash provided by operating activities for
current and comparable periods.
o Authorized an additional $500 million in share repurchases.
o Reduced corporate debt, net of cash on the balance sheet, by $394 million.
See Table 5 for more detailed information.
o Repurchased 19.5 million shares of common stock at an average price of
$15.86 per share.
In addition, the Company:
o Appointed Ronald L. Nelson as Chief Financial Officer (CFO) and member of
the Board of Directors. Kevin M. Sheehan, the Company's former CFO, now
focuses exclusively on his duties as Chairman and Chief Executive Officer
of the Company's Vehicle Services Division.
o Announced that it intends to begin paying a quarterly cash dividend in the
first quarter of 2004, anticipated initially to be $0.07 per common share,
or $0.28 per share annually, and to increase over time. The actual
declaration of dividends, and the establishment of record and payment
dates, is subject to the final determination of the Board of Directors.
SECOND QUARTER 2003 RESULTS OF REPORTABLE OPERATING STATEMENTS
- --------------------------------------------------------------
The following discussion of operating results focuses on revenue and EBITDA for
each of our reportable operating segments. EBITDA is defined as earnings from
continuing operations before non-program related depreciation and amortization,
non-program related interest, amortization of pendings and listings, income
taxes and minority interest. EBITDA is the measure that we use to evaluate
performance in each of our reportable operating segments in accordance with
generally accepted accounting principles. Revenue and EBITDA are expressed in
millions.
REAL ESTATE SERVICES
(Consisting of the Company's real estate franchise brands, brokerage operations,
mortgage services, settlement services and relocation services)
<Table>
<Caption>
2003 2002 % CHANGE
- -------------------------------------------------------------------------------
REVENUE $ 1,775 $ 1,440 23%
- -------------------------------------------------------------------------------
EBITDA $ 354 $ 315 12%
- -------------------------------------------------------------------------------
</Table>
2
<Page>
Revenue and EBITDA increased primarily due to strong organic growth in our
mortgage business, including an 89% increase in mortgage loan production
revenue, which was partially offset by increased amortization of mortgage
servicing rights. In addition, revenue and EBITDA benefited from organic growth
in all of our other real estate businesses, including settlement services,
employee relocation, real estate brokerage and real estate franchise. Revenue
also benefited from the acquisition of NRT in April 2002. See Table 8 for
details on organic growth.
HOSPITALITY
(Consisting of the Company's nine franchised lodging brands, timeshare exchange
and timeshare sales and marketing, and vacation rental businesses)
<Table>
<Caption>
2003 2002 % CHANGE
- -------------------------------------------------------------------------------
REVENUE $ 635 $ 565 12%
- -------------------------------------------------------------------------------
EBITDA $ 150 $ 173 (13%)
- -------------------------------------------------------------------------------
</Table>
Revenue and EBITDA were positively impacted by the acquisitions of Trendwest and
European vacation rental companies in 2002, 13% growth in Fairfield timeshare
sales revenue, and 8% growth in RCI timeshare exchange revenue. EBITDA declined,
however, due to a weak travel environment which impacted our lodging franchise
business, lower revenue from financing timeshare sales, and an increased
investment in timeshare marketing, which should generate incremental revenue and
EBITDA in future quarters. See Table 8 for details on organic growth.
TRAVEL DISTRIBUTION
(Consisting of electronic global distribution services for the travel industry
and travel agency services)
<Table>
<Caption>
2003 2002 % CHANGE
- --------------------------------------------------------------------------------
REVENUE $ 426 $ 438 (3%)
- --------------------------------------------------------------------------------
EBITDA $ 104 $ 130 (20%)
- --------------------------------------------------------------------------------
</Table>
Revenue and EBITDA declined primarily due to a 10% decrease in Galileo air
travel booking volume, resulting from lower international travel levels,
partially offset by the acquisition of national distribution partners (NDCs) in
Europe during 2002. In addition, the acquisition of Trip Network Inc. in March
2003 contributed incremental revenue but negatively impacted EBITDA. Like other
industry participants, we experienced a decline in worldwide travel demand
during second quarter 2003 due to a number of factors, including the military
conflict in Iraq, terrorist threat alerts, economic pressures and SARS. However,
travel booking volumes have begun to rebound from their lows and year-over-year
comparisons have improved progressively in May and June.
VEHICLE SERVICES
(Consisting of vehicle rental, vehicle management services and fleet card
services)
<Table>
<Caption>
2003 2002 % CHANGE
- -------------------------------------------------------------------------------
REVENUE $ 1,463 $ 1,030 42%
- -------------------------------------------------------------------------------
EBITDA $ 132 $ 123 7%
- -------------------------------------------------------------------------------
</Table>
3
<Page>
Revenue and EBITDA increased due to the acquisition of certain assets of Budget
Group, Inc. in fourth quarter 2002 and due to organic growth in Wright Express'
fuel card management business. The integration of Budget, which represents a
significant growth opportunity over the next two years, is proceeding according
to plan. Revenue and EBITDA were negatively impacted by lower car rental volume
at Avis due to depressed travel volumes. The impact of lower volume was
partially offset by a 3% increase in car rental pricing.
FINANCIAL SERVICES
(Consisting of individual membership products, insurance-related services,
financial services enhancement products and tax preparation services)
<Table>
<Caption>
2003 2002 % CHANGE
- --------------------------------------------------------------------------------
REVENUE $ 275 $ 311 (12%)
- --------------------------------------------------------------------------------
EBITDA $ 75 $ 88 (15%)
- --------------------------------------------------------------------------------
</Table>
Revenue and EBITDA declined as expected due primarily to the continued attrition
of the base of members retained by Cendant Membership Services at the time of
the 2001 outsourcing of its business to Trilegiant, partially offset by growth
in new member royalties paid to Cendant by Trilegiant. The EBITDA impact was
partially mitigated by a net reduction in expenses from servicing fewer members.
OTHER ITEMS
- -----------
o As of June 30, 2003, the Company had $627 million of cash and cash
equivalents and approximately $6.4 billion of corporate debt, including
$863 million of mandatorily convertible Upper DECS securities, outstanding.
In addition, the Company had a $375 million preferred minority interest
outstanding, which will be reclassified as debt in the third quarter of
2003 in connection with a new accounting standard that was adopted by the
Company on July 1, 2003.
o As of June 30, 2003, the Company's $2.9 billion credit facility was
supporting $1.1 billion in letter of credit used primarily as credit
enhancement for our debt under management and mortgage programs. The
Company had $1.8 billion of availability for use as of June 30, 2003.
o As of June 30, 2003, the Company's net debt (calculated as total corporate
debt, including Upper DECS and preferred minority interest, net of cash on
the balance sheet) to total capitalization (calculated as total
stockholders' equity plus net debt) ratio was 38.6%, versus 41.9% as of
December 31, 2002 (see calculation on Table 5). The Company's interest
coverage ratio was 10 to 1 for second quarter 2003 (see calculation on
Table 1).
o Weighted average common shares outstanding, including dilutive securities,
used to calculate EPS was 1.039 billion for second quarter 2003, versus
1.053 billion for second quarter 2002.
4
<Page>
2003 OUTLOOK
- ------------
The Company projects the following ranges of EPS from continuing operations for
the remainder of 2003:
<Table>
<Caption>
THIRD FOURTH FULL
QUARTER QUARTER YEAR
------------ ------------ ------------
2003 $0.44 - 0.45 $0.26 - 0.27 $1.37 - 1.39
2002 $0.24 $0.24 $1.01(a)
</Table>
(a) Reflects the reclassification of extraordinary losses on the early
extinguishments of debt ($0.02 for second quarter and $0.03 for full
year) to continuing operations in accordance with the adoption of a
new accounting pronouncement under generally accepted accounting
principles effective January 1, 2003.
The comparability of the Company's earnings from 2002 to 2003 is impacted by the
acquisitions of NRT in April 2002, Trendwest in May 2002, and Budget's car and
truck rental operations in November 2002; the mortgage servicing rights asset
write-down in third quarter 2002; the securities litigation charge recorded in
fourth quarter 2002; the debt extinguishment costs incurred in second quarter
2002 and first quarter 2003, which are partially mitigated by reduced interest
expense in subsequent quarters; and the gain on sale of our equity investment in
Entertainment Publications, Inc. in first quarter 2003.
In addition, in order to increase the transparency of our operating results, we
intend to amend our securitization structures for timeshare receivables, which
will result in consolidation of those structures. While we will continue to
transfer timeshare receivables to those structures, we will no longer recognize
gains on sale at the time of such transfers. We estimate that the required
change in the timing of income recognition will reduce our 2003 earnings per
share by $0.01 - $0.02, which impact is reflected in our full-year 2003
projections. This change, along with the required consolidation of Bishop's Gate
Residential Mortgage Trust, will have no impact on cash flow but will increase
our assets and liabilities under management and mortgage programs by
approximately $3 billion each.
The Company also announced the following detailed financial projections for full
year 2003 (in millions):
<Table>
<Caption>
FULL YEAR 2002 FULL YEAR 2003
ACTUAL PROJECTED
-------------- --------------
REVENUE
Real Estate Services $4,687 $6,350 - 6,550
Hospitality 2,180 2,550 - 2,650
Travel Distribution 1,695 1,650 - 1,750
Vehicle Services 4,175 5,600 - 5,750
Financial Services 1,325 1,350 - 1,400
------- ----------------
Total Reportable Operating Segments $14,062 $17,500 - 18,100
Corporate and Other 26 25 - 50
------- ----------------
Total Revenue $14,088 $17,525 - 18,150
======= ================
5
<Page>
EBITDA
Real Estate Services $832 $1,200 - 1,250
Hospitality 625 650 - 700
Travel Distribution 526 475 - 525
Vehicle Services 408 400 - 450
Financial Services 450 350 - 375
------- ----------------
Total Reportable Operating Segments $2,841 $3,125 - 3,250
Corporate and Other (198) (75 - 50)
Depreciation and amortization(a) (466) (560 - 540)
Amortization of pendings/listings (256) (20 - 15)
Interest expense, net (b) (304) (380 - 360)
------- ----------------
Pretax income $1,617 $2,090 - 2,285
Provision for income taxes (544) (700 - 765)
Minority interest (22) (20 - 15)
------- ----------------
Income from continuing operations $1,051 $1,370 - 1,505
======= ================
Diluted weighted average shares outstanding (c) 1,043 1,050 - 1,040
</Table>
* Projections assume that travel volumes continue to recover in third
quarter 2003 and do not reflect any impact from additional terrorist
attacks or substantial changes to current economic conditions.
Projections may not total because we do not expect the actual results
of all segments to be at the lowest or highest end of any projected
range simultaneously.
* As previously disclosed, effective July 1, 2003 we consolidated
Trilegiant, resulting in a non-cash charge of approximately $295
million, which will be recorded as a cumulative effect of accounting
change in third quarter 2003 and, therefore, will have no impact on
income or earnings per share from continuing operations, but will
impact net income.
* The effective tax rate is expected to be between 33% and 34% in 2003.
(a) Depreciation and amortization and interest expense exclude
program-related amounts, which are already reflected in EBITDA.
(b) 2002 interest expense includes $42 million of losses on the early
extinguishment of debt in connection with the adoption of a new
accounting pronouncement under generally accepted accounting
principles effective January 1, 2003, which required the
reclassification of such losses from extraordinary items to continuing
operations. 2003 interest expense includes $62 million of losses on
the early extinguishment of debt.
(c) Diluted weighted average shares outstanding forecasted for 2003
reflect the full-year impact of the Trendwest and NRT acquisitions,
which were completed in 2002 for stock, offset by anticipated common
stock repurchases.
INVESTOR CONFERENCE CALL
- ------------------------
Cendant will host a conference call to discuss the second quarter results on
Tuesday, July 22, 2003, at 11:00 a.m. (EST). Investors may access the call live
at WWW.CENDANT.COM or by dialing (913) 981-4910. A web replay will be available
at WWW.CENDANT.COM following the call. A telephone replay will be available from
2:00 p.m. (EST) on July 22, 2003 until 8:00 p.m. (EST) on July 29, 2003 at (719)
457-0820, access code: 377415.
Cendant Corporation is primarily a provider of travel and residential real
estate services. With approximately 90,000 employees, New York City-based
Cendant provides these services to businesses and consumers in over 100
countries.
6
<Page>
More information about Cendant, its companies, brands and current SEC filings
may be obtained by visiting the Company's Web site at WWW.CENDANT.COM or by
calling 877-4-INFOCD (877-446-3623).
STATEMENTS ABOUT FUTURE RESULTS MADE IN THIS RELEASE, INCLUDING THE PROJECTIONS,
AND THE STATEMENTS ATTACHED HERETO CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN
THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THESE
STATEMENTS ARE BASED ON CURRENT EXPECTATIONS AND THE CURRENT ECONOMIC
ENVIRONMENT. THE COMPANY CAUTIONS THAT THESE STATEMENTS ARE NOT GUARANTEES OF
FUTURE PERFORMANCE. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR
IMPLIED IN THE FORWARD-LOOKING STATEMENTS. IMPORTANT ASSUMPTIONS AND OTHER
IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THOSE IN THE FORWARD-LOOKING STATEMENTS ARE SPECIFIED IN CENDANT'S FORM 10-Q FOR
THE PERIOD ENDED MARCH 31, 2003.
SUCH FORWARD-LOOKING STATEMENTS INCLUDE PROJECTIONS. SUCH PROJECTIONS WERE NOT
PREPARED IN ACCORDANCE WITH PUBLISHED GUIDELINES OF THE AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS OR THE SEC REGARDING PROJECTIONS AND FORECASTS, NOR
HAVE SUCH PROJECTIONS BEEN AUDITED, EXAMINED OR OTHERWISE REVIEWED BY
INDEPENDENT AUDITORS OF CENDANT OR ITS AFFILIATES. IN ADDITION, SUCH PROJECTIONS
ARE BASED UPON MANY ESTIMATES AND ARE INHERENTLY SUBJECT TO SIGNIFICANT
ECONOMIC, COMPETITIVE AND OTHER UNCERTAINTIES AND CONTINGENCIES, INCLUDING BUT
NOT LIMITED TO THE IMPACT OF WAR, TERRORISM OR PANDEMICS, WHICH ARE BEYOND THE
CONTROL OF MANAGEMENT OF CENDANT AND ITS AFFILIATES. ACCORDINGLY, ACTUAL RESULTS
MAY BE MATERIALLY HIGHER OR LOWER THAN THOSE PROJECTED. THE INCLUSION OF SUCH
PROJECTIONS HEREIN SHOULD NOT BE REGARDED AS A REPRESENTATION BY CENDANT OR ITS
AFFILIATES THAT THE PROJECTIONS WILL PROVE TO BE CORRECT.
THIS RELEASE INCLUDES CERTAIN NON-GAAP FINANCIAL MEASURES AS DEFINED UNDER SEC
RULES. AS REQUIRED BY SEC RULES, WE HAVE PROVIDED A RECONCILIATION OF THOSE
MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES, WHICH IS CONTAINED IN
THE TABLES TO THIS RELEASE AND ON OUR WEB SITE AT WWW.CENDANT.COM.
MEDIA CONTACT: INVESTOR CONTACTS:
Elliot Bloom Sam Levenson
212-413-1832 212-413-1834
Henry A. Diamond
212-413-1920
# # #
Tables Follow
<Page>
TABLE 1
CENDANT CORPORATION AND SUBSIDIARIES
SUMMARY DATA SHEET
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
<Table>
<Caption>
2003 2002 % CHANGE
------------ ----------- -----------
INCOME STATEMENT ITEMS FOR SECOND QUARTER
Net Revenues $ 4,580 $ 3,784 21%
Pretax Income (A) 582 375 55%
Income from Continuing Operations 382 239 60%
EPS from Continuing Operations (diluted) 0.37 0.23 61%
BALANCE SHEET ITEMS AS OF JUNE 30, 2003 AND
DECEMBER 31, 2002
Total Corporate Debt (Excluding Upper DECS) (B) $ 5,545 $ 5,601
Cash and Cash Equivalents 627 126
Total Stockholders' Equity 9,776 9,315
Net Debt to Total Capitalization Ratio (C) 38.6% 41.9%
CASH FLOW ITEMS FOR SECOND QUARTER
Net Cash Provided by (Used in) Operating
Activities (D) $ 1,240 $ (112)
Free Cash Flow before Stockholder Litigation
Payments (E) 751 438
Free Cash Flow (E) 751 (752)
Net Cash Provided by (Used in) Management and
Mortgage Program Activities (F) (154) 160
Payments Made for Current Period Acquisitions,
Net of Cash Acquired (17) (371)
Net Debt Repayments (432) (632)
Net Repurchases of Common Stock (215) (37)
INTEREST COVERAGE RATIOS FOR SECOND QUARTER
Total EBITDA $ 801 $ 778
Non-program related Interest Expense, net 80 60
Interest Coverage 10 to 1 13 to 1
</Table>
REPORTABLE OPERATING SEGMENT RESULTS
<Table>
<Caption>
SECOND QUARTER % CHANGE
----------------------------------------------------------
NET REVENUES 2003 2002 AS REPORTED ORGANIC (G)
------------ ------------ ----------- -----------
Real Estate Services $ 1,775 1,440 23% 9%
Hospitality 635 565 12% 4%
Travel Distribution 426 438 (3%) (11%)
Vehicle Services 1,463 1,030 42% (2%)
Financial Services 275 311 (12%) (13%)
------------ ------------
Total Reportable Segments 4,574 3,784 21% 1%
Corporate and Other 6 - *
------------ ------------
Total Company $ 4,580 $ 3,784 21%
============ ============
EBITDA
Real Estate Services $ 354 $ 315 12% 15%
Hospitality 150 173 (13%) (10%)
Travel Distribution 104 130 (20%) (14%)
Vehicle Services 132 123 7% (7%)
Financial Services 75 88 (15%) (15%)
------------ ------------
Total Reportable Segments 815 829 (2%) (1%)
Corporate and Other (H) (14) (51)
------------ ------------
Total Company 801 778
Less: Non-program related Depreciation and Amortization 129 111
Non-program related Interest Expense, net 80 60
Early Extinguishment of Debt 6 38
Amortization of Pendings and Listings 4 194
------------ ------------
Pretax Income $ 582 $ 375 55%
============ ============
</Table>
- ----------
* Not meaningful.
(A) Referred to as "Income before income taxes and minority interest" on the
Consolidated Condensed Statements of Income presented on Table 2.
(B) Does not include the Company's $375 million mandatorily redeemable
preferred interest that will be reclassified to long-term debt as of July
1, 2003 in connection with the adoption of a new accounting standard, as
the Company is precluded from reclassifying this amount prior to July 1,
2003.
(C) Although the Company is precluded from reclassifying its $375 million
mandatorily redeemable preferred interest on its Consolidated Balance
Sheet (as described in Note (B) above), such amount is reflected as a
component of Net Debt for the purposes of this ratio. See Table 5 for a
calculation of this ratio.
(D) The 2002 amount includes $1.19 billion of cash payments made to the
stockholder litigation settlement trust during second quarter 2002 to
extinguish the remaining portion of the Company's principal stockholder
litigation settlement liability.
(E) See Table 7 for the underlying calculations and reconciliations.
(F) Included as a component of Free Cash Flow. This amount represents the net
cash flows from the operating, investing and financing activities of
management and mortgage programs.
(G) See Table 8 for underlying calculations.
(H) Principally reflects unallocated corporate overhead.
<Page>
TABLE 2
CENDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(IN MILLIONS, EXCEPT PER SHARE DATA)
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------------- ---------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
REVENUES
Service fees and membership-related, net $ 3,170 $ 2,792 $ 5,960 $ 4,501
Vehicle-related 1,406 981 2,673 1,871
Other 4 11 41 28
------------ ------------ ------------ ------------
Net revenues 4,580 3,784 8,674 6,400
------------ ------------ ------------ ------------
EXPENSES
Operating 2,401 1,831 4,414 2,695
Vehicle depreciation, lease charges and interest, net 617 510 1,213 1,009
Marketing and reservation 413 358 821 679
General and administrative 340 294 681 575
Non-program related depreciation and amortization 129 111 257 216
Non-program related interest, net:
Interest expense, net 80 60 161 126
Early extinguishment of debt 6 38 54 38
Acquisition and integration related costs:
Amortization of pendings and listings 4 194 7 194
Other 8 13 15 13
------------ ------------ ------------ ------------
Total expenses 3,998 3,409 7,623 5,545
------------ ------------ ------------ ------------
INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 582 375 1,051 855
Provision for income taxes 193 130 348 293
Minority interest, net of tax 7 6 12 8
------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERATIONS 382 239 691 554
Income from discontinued operations, net of tax - 24 - 51
Loss on disposal of discontinued operations, net of tax - (256) - (256)
------------ ------------ ------------ ------------
NET INCOME $ 382 $ 7 $ 691 $ 349
============ ============ ============ ============
EARNINGS PER SHARE
BASIC
Income from continuing operations $ 0.38 $ 0.23 $ 0.68 $ 0.55
Net income 0.38 0.01 0.68 0.35
DILUTED
Income from continuing operations $ 0.37 $ 0.23 $ 0.67 $ 0.54
Net income 0.37 0.01 0.67 0.34
WEIGHTED AVERAGE SHARES
Basic 1,017 1,023 1,022 1,001
Diluted 1,039 1,053 1,039 1,036
</Table>
<Page>
TABLE 3
(PAGE 1 OF 2)
CENDANT CORPORATION AND AFFILIATES
SEGMENT REVENUE DRIVER ANALYSIS
(REVENUE DOLLARS IN THOUSANDS)
<Table>
<Caption>
SECOND QUARTER
---------------------------------------------
2003 2002 % CHANGE
------------ ------------ ------------
REAL ESTATE SERVICES SEGMENT
REAL ESTATE FRANCHISE
Closed Sides - Domestic 574,494 565,130 2%
Average Price $ 206,867 $ 194,918 6%
Royalty and Marketing Revenue (A) $ 191,628 $ 183,334 5%
Total Revenue $ 200,069 $ 191,729 4%
REAL ESTATE BROKERAGE (B)
Net Revenue from Real Estate Transactions (C) $ 1,065,919 $ 909,051 *
Other Revenue $ 10,539 $ 6,073 *
Total Revenue $ 1,076,458 $ 915,124 *
RELOCATION
Service Based Revenue (Referrals, Outsourcing, etc.) $ 76,679 $ 69,405 10%
Asset Based Revenue (Home Sale Closings and Financial Income) $ 34,426 $ 37,367 (8%)
Total Revenue $ 111,105 $ 106,772 4%
MORTGAGE
Production Loans Closed to be Securitized (millions) $ 16,976 $ 7,681 121%
Other Production Loans Closed (millions) $ 6,344 $ 4,767 33%
Production Loans Sold (millions) $ 16,298 $ 8,125 101%
Average Servicing Loan Portfolio (millions) $ 119,758 $ 103,408 16%
Production Revenue $ 351,875 $ 186,169 89%
Gross Recurring Servicing Revenue $ 109,725 $ 102,956 7%
Amortization and Impairment of Mortgage Servicing Rights $ (255,973) $ (113,462) *
Hedging Activity for Mortgage Servicing Rights $ 68,584 $ (2,809) *
Other Servicing Revenue (D) $ (8,124) $ (1,600) *
Total Revenue $ 266,087 $ 171,254 55%
SETTLEMENT SERVICES
Title and Appraisal Units 149,123 107,810 38%
Total Revenue (E) $ 123,416 $ 55,684 *
HOSPITALITY SEGMENT
LODGING
RevPAR $ 27.45 $ 27.55 -
Weighted Average Rooms Available 489,995 518,150 (5%)
Royalty, Marketing and Reservation Revenue $ 95,280 $ 101,005 (6%)
Total Revenue $ 108,426 $ 116,373 (7%)
RCI (F)
Average Subscriptions 2,925,283 2,868,837 2%
Average Subscription Fee $ 58.69 $ 56.45 4%
Subscription Revenue $ 42,918 $ 40,485 6%
Timeshare Exchanges 432,353 454,255 (5%)
Average Exchange Fee $ 162.03 $ 142.68 14%
Exchange Fee Revenue $ 70,056 $ 64,811 8%
Total Revenue $ 143,874 $ 133,378 8%
FAIRFIELD RESORTS
Tours 147,701 137,326 8%
Total Revenue $ 207,556 $ 210,518 (1%)
TRENDWEST RESORTS
Tours 105,365 105,245 -
Total Revenue (G) $ 143,233 $ 93,520 *
VACATION RENTAL GROUP
Cottage Weeks Sold 130,198 71,549 82%
Total Revenue (H) $ 32,170 $ 14,854 *
</Table>
- ----------
* Not meaningful.
(A) Includes intercompany royalties paid by Real Estate Brokerage.
(B) The 2002 amounts reflect the revenues of NRT from the acquisition date
(April 17, 2002) forward, while the 2003 amounts reflect the revenues for
the entire quarter. Accordingly, second quarter 2002 revenues are not
comparable to the current period amounts.
(C) Net of intercompany royalties paid to Real Estate Franchise.
(D) Includes net interest expense of $24 million and $13 million for 2003 and
2002, respectively.
(E) The 2002 amount includes the revenues of NRT's settlement services
operations from the acquisition date (April 17, 2002) forward, while the
2003 amount includes the revenues for the entire quarter. Accordingly,
second quarter 2002 revenues are not comparable to the current period
amount.
(F) Includes weeks and points members.
(G) The 2002 amount reflects the revenues of Trendwest from the acquisition
date (April 30, 2002) forward, while the 2003 amount reflects the
revenues for the entire quarter. Accordingly, second quarter 2002
revenues are not comparable to the current period amount.
(H) The 2002 amount includes the revenues of businesses acquired during
second quarter 2002 from their acquisition dates forward, while the 2003
amount includes the revenues for these businesses for the entire quarter.
The 2003 amount also includes the revenue of a company acquired in
October 2002. Accordingly, second quarter 2002 revenues are not
comparable to the current period amount.
<Page>
TABLE 3
(PAGE 2 OF 2)
CENDANT CORPORATION AND AFFILIATES
SEGMENT REVENUE DRIVER ANALYSIS
(REVENUE DOLLARS IN THOUSANDS)
<Table>
<Caption>
SECOND QUARTER
---------------------------------------------
2003 2002 % CHANGE
------------ ------------ ------------
TRAVEL DISTRIBUTION SEGMENT
Galileo Domestic Booking Volume (000's)
Air (A) 20,979 20,436 3%
Car/Hotel 4,528 4,521 -
Galileo International Booking Volume (000's)
Air (A) 41,050 48,779 (16%)
Car/Hotel 1,234 1,328 (7%)
Galileo Worldwide Booking Volume (000's)
Air (A) 62,029 69,215 (10%)
Car/Hotel 5,762 5,849 (1%)
Travel Services On-line Gross Bookings (000's) $ 347,248 $ 231,917 50%
Travel Services Off-line Gross Bookings (000's) $ 129,612 $ 172,921 (25%)
Total Revenue (B) $ 426,228 $ 438,150 *
VEHICLE SERVICES SEGMENT
AVIS
Rental Days (000's) 13,939 15,201 (8%)
Time and Mileage Revenue per Day $ 41.53 $ 40.35 3%
Average Length of Rental (stated in Days) 3.52 3.63 (3%)
Total Revenue $ 624,271 $ 654,578 (5%)
BUDGET (C)
Car Rental Days (000's) 8,335 7,884 6%
Time and Mileage Revenue per Day $ 32.98 $ 35.80 (8%)
Average Length of Rental (stated in Days) 4.33 4.22 3%
Car Rental Revenue $ 319,128 (D)
Truck Rental Revenue $ 139,163 (D)
Total Revenue $ 458,291 (D)
VEHICLE MANAGEMENT AND FUEL CARD SERVICES
Average Fleet (Leased) 317,622 318,337 -
Average Number of Cards (000's) 3,754 3,628 3%
Service Based Revenue $ 56,588 $ 48,175 17%
Asset Based Revenue $ 323,645 $ 327,252 (1%)
Total Revenue $ 380,233 $ 375,427 1%
FINANCIAL SERVICES SEGMENT
Insurance/Wholesale-related Revenue $ 148,311 $ 139,997 6%
Individual Membership Royalty Revenue (E) $ 4,490 $ - *
Other Individual Membership Revenue (F) $ 96,421 $ 152,253 (37%)
Total Revenue $ 275,110 $ 310,792 (11%)
</Table>
- ----------
* Not meaningful.
(A) The 2002 amounts have been revised to reflect segments on a basis
consistent with 2003 and with industry standards.
(B) The 2003 amount includes the revenues of businesses acquired subsequent
to second quarter 2002. Accordingly, second quarter 2002 revenues are not
comparable to the current period amount.
(C) The methodology for calculating Budget's revenue drivers currently
differs from the methodology used for the Avis business as Budget has not
yet been integrated onto Avis' reservation system. Due to the methodology
difference, Budget's length of rental will be longer than Avis' based on
a rental of the same duration and, accordingly, Budget's time and mileage
per day will be lower than Avis' for the same rental. The integration is
expected to occur by the end of second quarter 2004.
(D) The operations of this business were acquired subsequent to the second
quarter of 2002.
(E) Reflects only Cendant's royalty received on revenues generated by members
who joined the clubs and programs subsequent to July 2001. The revenue
generated by these new members is recognized by Trilegiant and is not
included in the above table. Cendant receives a royalty of 5%, with
minimal associated expenses, on the revenues recognized by Trilegiant in
connection with the new members.
(F) Reflects a decline due to the outsourcing of the Company's individual
membership business in July 2001 to Trilegiant. While the Company
continues to collect membership fees from the members that existed as of
July 2001, it does not collect the membership fees from new members who
joined the clubs and programs subsequent to July 2001. Trilegiant
recognizes the revenues generated by these new members (see (E) above).
<Page>
TABLE 4
CENDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN BILLIONS)
<Table>
<Caption>
AS OF AS OF
JUNE 30, 2003 DECEMBER 31, 2002
------------- -----------------
ASSETS
Current assets:
Cash and cash equivalents $ 0.6 $ 0.1
Other current assets 3.1 3.3
------------- -----------------
Total current assets 3.7 3.4
Property and equipment, net 1.7 1.8
Goodwill, net 10.8 10.7
Other non-current assets 4.5 4.9
------------- -----------------
Total assets exclusive of assets under programs 20.7 20.8
Assets under management and mortgage programs 16.2 15.1
------------- -----------------
TOTAL ASSETS $ 36.9 $ 35.9
============= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 0.7 $ --
Other current liabilities 4.9 5.0
------------- -----------------
Total current liabilities 5.6 5.0
Long-term debt, excluding Upper DECS 4.8 5.6
Upper DECS 0.9 0.9
Other non-current liabilities 1.0 0.9
------------- -----------------
Total liabilities exclusive of liabilities under programs 12.3 12.4
Liabilities under management and mortgage programs 14.4 13.8
Mandatorily redeemable preferred interest in a subsidiary (*) 0.4 0.4
Total stockholders' equity 9.8 9.3
------------- -----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 36.9 $ 35.9
============= =================
</Table>
- ----------
(*) The 2003 amount will be reclassified to long-term debt as of July 1, 2003
in connection with the adoption of a new accounting standard.
<Page>
TABLE 5
CENDANT CORPORATION AND SUBSIDIARIES
SCHEDULE OF CORPORATE DEBT (A)
(IN MILLIONS)
<Table>
<Caption>
EARLIEST MANDATORY JUNE 30, MARCH 31, DECEMBER 31,
REDEMPTION DATE MATURITY DATE 2003 2003 2002
- ------------------ ------------- --------- --------- ------------
NET DEBT
December 2003 December 2003 7 3/4% notes $ 229 $ 229 $ 966
February 2004 February 2021 Zero coupon senior convertible contingent notes (B) 425 422 420
May 2004 May 2021 Zero coupon convertible debentures (C) 7 401 857
November 2004 November 2011 3 7/8% convertible senior debentures (D) 804 804 1,200
August 2006 August 2006 6 7/8% notes 849 849 849
January 2008 January 2008 6 1/4% notes 796 796 -
May 2009 May 2009 11% senior subordinated notes 398 435 530
March 2010 March 2010 6 1/4% notes 348 348 -
January 2013 January 2013 7 3/8% notes 1,190 1,189 -
March 2015 March 2015 7 1/8% notes 250 250 -
December 2005 Revolver borrowings - - 600
Net hedging gains (E) 163 81 89
Other 86 88 90
--------- --------- ------------
Total corporate debt, excluding Upper DECS 5,545 5,892 5,601
Less: Cash and cash equivalents 627 580 126
--------- --------- ------------
4,918 5,312 5,475
Plus: Upper DECS 863 863 863
Plus: Mandatorily redeemable preferred interest 375 375 375
--------- --------- ------------
NET DEBT $ 6,156 $ 6,550 $ 6,713
========= ========= ============
TOTAL CAPITALIZATION
Total Stockholders' Equity $ 9,776 $ 9,529 $ 9,315
Net Debt (per above) 6,156 6,550 6,713
--------- --------- ------------
TOTAL CAPITALIZATION $ 15,932 $ 16,079 $ 16,028
========= ========= ============
NET DEBT TO TOTAL CAPITALIZATION RATIO (F) 38.6% 40.7% 41.9%
</Table>
- ----------
(A) Amounts presented herein exclude debt under management and mortgage
programs.
(B) Each $1,000 principal amount is convertible into 33.4 shares of CD common
stock during the third and fourth quarters of 2003 if the average price
of CD common stock exceeds $21.32 and $21.45, respectively, during the
stipulated measurement periods. The average price of CD common stock at
which the notes are convertible increases on a quarterly basis by a
stipulated percentage. Redeemable by the Company after February 13, 2004.
Holders may require the Company to repurchase the notes on February 13,
2004, 2009 and 2014. Issued at a discount resulting in a
yield-to-maturity of 2.5%.
(C) Each $1,000 principal amount is convertible into 39.08 shares of CD
common stock if the average price of CD common stock exceeds $28.15
during the stipulated measurement periods. Redeemable by the Company
after May 4, 2004. Holders may require the Company to repurchase the
debentures on May 4, 2004, 2006, 2008, 2011 and 2016. The 2003 year to
date redemptions eliminated approximately 33 million shares of potential
dilution.
(D) Each $1,000 principal amount is convertible into 41.58 shares of CD
common stock during 2003 if the average price of CD common stock exceeds
$28.59 during the stipulated measurement periods. The average price of CD
common stock at which the debentures are convertible decreases annually
by a stipulated percentage. Redeemable by the Company after November 27,
2004. Holders may require the Company to repurchase the debentures on
November 27, 2004 and 2008. The 2003 year to date repurchases eliminated
approximately 16 million shares of potential dilution.
(E) As of June 30, 2003, represents $225 million of realized gains resulting
from fair value hedges that will be amortized by the Company to reduce
future interest expense, partially offset by $62 million of mark to
market adjustments on current fair value interest rate hedges.
(F) The calculation of this ratio has been revised to reflect the mandatorily
redeemable preferred interest as a component of net debt in connection
with a new accounting standard that was adopted by the Company on July 1,
2003. When reporting first quarter 2003 results, the Company's definition
of net debt did not include the mandatorily redeemable preferred
interest. When calculating this ratio using the definition of net debt
from first quarter 2003, the Net Debt to Total Capitalization ratio was
36%, 38% and 40% as of June 30, 2003, March 31, 2003 and
December 31, 2002, respectively.
<Page>
TABLE 6
CENDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(IN MILLIONS)
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- --------------------
2003 2002 2003 2002
--------- --------- -------- --------
OPERATING ACTIVITIES
Net cash provided by (used in) operating activities exclusive of
management and mortgage programs $ 1,002 $ (830) $ 1,318 $ (2,275)
Net cash provided by operating activities of management
and mortgage programs 238 718 1,046 1,591
--------- --------- -------- --------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 1,240 (112) 2,364 (684)
--------- --------- -------- --------
INVESTING ACTIVITIES
Property and equipment additions (101) (86) (198) (139)
Net assets acquired, net of cash acquired, and acquisition-related
payments (54) (384) (135) (623)
Proceeds from stockholder litigation settlement trust - - - 1,410
Net proceeds from disposition of business - 1,200 - 1,200
Other, net 20 (17) 155 (21)
--------- --------- -------- --------
Net cash provided by (used in) investing activities exclusive of management
and mortgage programs (135) 713 (178) 1,827
--------- --------- -------- --------
MANAGEMENT AND MORTGAGE PROGRAMS:
Net investment in vehicles (883) (830) (1,570) (1,180)
Net timeshare receivables and inventory (52) (67) (33) (84)
Net relocation receivables (80) 6 (92) 65
Net mortgage servicing rights, related derivatives and mortgage-backed
securities 88 (135) 81 (412)
--------- --------- -------- --------
(927) (1,026) (1,614) (1,611)
--------- --------- -------- --------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (1,062) (313) (1,792) 216
--------- --------- -------- --------
FINANCING ACTIVITIES
Proceeds from borrowings 1 3 2,651 3
Principal payments on borrowings (433) (635) (2,834) (1,126)
Issuances of common stock 94 43 126 106
Repurchases of common stock (309) (80) (461) (137)
Other, net (22) (13) (86) (18)
--------- --------- -------- --------
Net cash used in financing activities exclusive of management
and mortgage programs (669) (682) (604) (1,172)
--------- --------- -------- --------
MANAGEMENT AND MORTGAGE PROGRAMS:
Proceeds from borrowings 6,539 4,837 13,625 7,355
Principal payments on borrowings (6,240) (4,135) (12,825) (7,187)
Net change in short-term borrowings 233 (231) (238) (36)
Other 3 (3) (9) (6)
--------- --------- -------- --------
535 468 553 126
--------- --------- -------- --------
NET CASH USED IN FINANCING ACTIVITIES (134) (214) (51) (1,046)
--------- --------- -------- --------
Effect of changes in exchange rates on cash and cash equivalents 3 (10) (20) (16)
Cash provided by discontinued operations - 93 - 74
--------- --------- -------- --------
Net increase (decrease) in cash and cash equivalents 47 (556) 501 (1,456)
Cash and cash equivalents, beginning of period 580 1,042 126 1,942
--------- --------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 627 $ 486 $ 627 $ 486
========= ========= ======== ========
</Table>
<Page>
TABLE 7
CENDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF FREE CASH FLOWS
(IN MILLIONS)
Free Cash Flow is useful to management and the Company's investors in measuring
the cash generated by the Company that is available to be used to repurchase
stock, repay debt obligations, pay dividends and invest in future growth through
new business development activities or acquisitions. Free Cash Flow should not
be construed as a substitute in measuring operating results or liquidity. Such
metric may not be comparable to similarly titled measures used by other
companies and is not a measurement recognized under generally accepted
accounting principles. A reconciliation of Free Cash Flow to the appropriate
measure recognized under generally accepted accounting principles (Net Cash
Provided by Operating Activities) is presented below.
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- --------------------
2003 2002 2003 2002
--------- --------- -------- --------
Pretax income $ 582 $ 375 $ 1,051 $ 855
Addback of non-cash depreciation and amortization:
Non-program related 129 111 257 216
Pendings and listings 4 194 7 194
Tax payments, net of refunds (29) (22) (49) (70)
Working capital (A) 349 (23) 116 (298)
Capital expenditures (101) (86) (198) (139)
Other (29) (271) 22 (316)
Management and mortgage programs (B) (154) 160 (15) 106
--------- --------- -------- --------
FREE CASH FLOW BEFORE STOCKHOLDER LITIGATION PAYMENTS 751 438 1,191 548
Stockholder litigation payments - (1,190) - (1,440)
--------- --------- -------- --------
FREE CASH FLOW 751 (752) 1,191 (892)
Current period acquisitions, net of cash acquired (17) (371) (44) (543)
Payments related to prior period acquisitions (37) (13) (91) (80)
Net repurchases of common stock (215) (37) (335) (31)
Net proceeds from disposition of business - 1,200 - 1,200
Investments and other (3) 49 (37) 13
Net repayments of borrowings (432) (632) (183) (1,123)
--------- --------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (PER TABLE 6) $ 47 $ (556) $ 501 $ (1,456)
========= ========= ======== ========
</Table>
(A) The 2003 amounts include approximately $160 million of proceeds
received from the termination of interest rate swaps on corporate debt
instruments. The Company subsequently reset these hedge positions to
create a desired balance between its floating rate debt and floating
rate assets.
(B) Cash flows related to management and mortgage programs may fluctuate
significantly from period to period due to the timing of the underlying
management and mortgage program transactions (i.e., timing of mortgage
loan origination versus sale). For the three months ended June 30, 2003
and 2002, the net cash flows from the activities of management and
mortgage programs is reflected on Table 6 as follows: (i) net cash
provided by operating activities of $238 million and $718 million,
respectively, (ii) net cash used in investing activities of $927 million
and $1,026 million, respectively, and (iii) net cash provided by
financing activities of $535 million and $468 million, respectively. For
the six months ended June 30, 2003 and 2002, the net cash flows from the
activities of management and mortgage programs is reflected on Table 6 as
follows: (i) net cash provided by operating activities of $1,046 million
and $1,591 million, respectively, (ii) net cash used in investing
activities of $1,614 million and $1,611 million, respectively, and (iii)
net cash provided by financing activities of $553 million and $126
million, respectively.
<Page>
RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
(IN MILLIONS)
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- --------------------
2003 2002 2003 2002
--------- --------- -------- --------
FREE CASH FLOW (PER ABOVE) $ 751 $ (752) $ 1,191 $ (892)
Cash (inflows) outflows included in Free Cash Flow but not
reflected in Net Cash Provided by (Used in)
Operating Activities:
Investing activities of management and mortgage programs 927 1,026 1,614 1,611
Financing activities of management and mortgage programs (535) (468) (553) (126)
Capital expenditures 101 86 198 139
Proceeds received on asset sales (4) - (86) (3)
Reductions to Net Cash Provided by (Used in)
Operating Activities but not reflected in Free Cash Flow:
Funds released from stockholder litigation settlement
trust (a) - - - (1,410)
Other - (4) - (3)
--------- --------- -------- --------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
(PER TABLE 6) $ 1,240 $ (112) $ 2,364 $ (684)
========= ========= ======== ========
<Caption>
PROJECTED 2003
(FULL YEAR)
--------------
FREE CASH FLOW $ 2,000
Cash (inflows) outflows included in Free Cash Flow but not
reflected in Net Cash Provided by Operating Activities:
Investing and financing activities of management and
mortgage programs 2,502
Capital expenditures 465
Proceeds received on asset sales (86)
--------------
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 4,881
==============
</Table>
- ----------
(a) Represents payments made by the Company to the stockholder litigation
settlement trust in 2001. Such funds were then released directly from the
trust in 2002 to pay off a portion of the Company's stockholder
litigation settlement liability. The extinguishment of the liability was
reported as a reduction to net cash provided by operating activities
during 2002 but is not reflected in free cash flow during 2002 as such
amount did not represent payments made by the Company during 2002.
<Page>
TABLE 8
CENDANT CORPORATION AND SUBSIDIARIES
ORGANIC GROWTH BY SEGMENT
(IN MILLIONS)
Organic growth represents the results of our reportable operating segments
excluding the impact of acquisitions, dispositions and other items that would
affect the comparability of the period over period results. See Table 1 for the
reported results of each of our operating segments.
<Table>
<Caption>
REVENUES EBITDA
-------------------------- ----------------------------
SECOND QUARTER SECOND QUARTER
-------------------------- ----------------------------
2003 2002 % (*) 2003 2002 % (*)
------- ------- ------ ------- ------- --------
Real Estate Services (A) $ 1,602 $ 1,464 9% $ 363 $ 314 15%
Hospitality (B) 583 558 4% 152 168 (10%)
Travel Distribution (C) 390 438 (11%) 112 131 (14%)
Vehicle Services (D) 1,005 1,029 (2%) 115 123 (7%)
Financial Services (E) 270 311 (13%) 75 88 (15%)
------- ------- ------- -------
Total Reportable Segments $ 3,850 $ 3,800 1% $ 817 $ 824 (1%)
======= ======= ======= =======
</Table>
- ----------
(*) Amounts may not calculate due to rounding in millions.
(A) Includes a reduction in revenue growth of $197 million and an increase in
EBITDA growth of $10 million related to the acquisition of NRT Incorporated
(April 2002) and other real estate brokerage operations acquired during or
subsequent to second quarter 2002.
(B) Includes a reduction in revenue growth of $45 million and an increase in
EBITDA growth of $7 million primarily related to the acquisitions of
Trendwest Resorts, Inc. (April 2002), FFD Development Company, LLC (February
2003) and certain other European vacation rental companies during or
subsequent to second quarter 2002.
(C) Includes a reduction in revenue growth of $36 million and an increase in
EBITDA growth of $7 million primarily related to the acquisitions of Trust
International (July 2002), Lodging.com (August 2002), Trip Network, Inc.
(March 2003) and several national distribution companies in Europe during or
subsequent to second quarter 2002.
(D) Includes reductions in revenue and EBITDA growth of $457 million and $17
million, respectively, related to the November 2002 acquisition of certain
assets of Budget Group, Inc.
(E) Includes a reduction in revenue growth of $5 million related to the
consolidation of certain insurance operations in second quarter 2003 due to
an increase in the Company's ownership percentage of such businesses.