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Cendant Splitting Into Four Companies

Updated October 24, 2005

NEW YORK - Cendant Corporation, which operates a wide range of businesses, announced that its Board of Directors has approved a plan to separate Cendant into four independent, publicly traded, pure-play companies -- one each for Cendant's real estate, travel distribution, hospitality and vehicle rental businesses. The plan is designed to enable shareholders and the four companies to realize Cendant's value, which has not yet been fully recognized by the market, despite the strong operating and financial performance of Cendant's businesses.

Following the proposed transaction, Cendant's shareholders will own 100% of the equity in all four companies. The transaction is expected to be effected through three 100% spin-offs in the summer of 2006. It is expected to be tax-free for the Company and its shareholders.

Cendant operates many well-known brands including: Avis and Budget rental cars; hotels under the Days Inn, Wingate Inn, Super 8, Travelodge and Ramada names; hotel and travel booking sites including Orbitz, Cheaptickets.com and Lodging.com; real estate brokerages including Century 21, ERA, Sotheby's and Coldwell Banker.

"We believe that this is the right thing to do, for the right reasons and at the right time," said Cendant's Chairman and Chief Executive Officer, Henry R. Silverman. "Creating four strong and focused pure-play companies is the best way to unlock the full value of Cendant's businesses for the benefit of our shareholders in both the short and long term. All of our businesses have done well, yet despite Cendant's consistently strong operating and financial performance in recent years, the market has not fully recognized the value of the Company. Our successful efforts to simplify Cendant's structure and divest non-core businesses have underscored the benefits of greater clarity and focus. With these efforts complete, we have now concluded that it is in the best interests of our shareholders to establish pure-play enterprises, as we and our advisors believe the sum of the parts has a value in excess of our current share price."

The Real Estate, Hospitality and Vehicle Rental companies are expected to continue to be based in Parsippany, N.J., where they are now located. The Travel Network will be headquartered at Cendant's current New York City office and Henry Silverman will be the Chief Executive Officer. No change in the location of the Company's workforce is anticipated.

Cendant has 85,000 employees.

No names have been selected yet for the new companies but it was announced the Cendant name will be retired once the split is complete.