American Bankers Insurance Group Inc. and Cendant Corp. Announce Decision to Terminate Merger Agreement.

PARSIPPANY, N.J. and MIAMI--(BUSINESS WIRE)--Oct. 13, 1998-- Cendant Corp. (NYSE:CD) and American Bankers Insurance Group Inc. (NYSE:ABI) announced today their mutual decision to terminate their merger agreement which provided for Cendant's acquisition of American Bankers.

In conjunction with the termination, Cendant and American Bankers have released each other from any claims relating to Cendant's proposed acquisition of American Bankers and Cendant has made a $400 million cash payment to American Bankers. As a result of the termination of the Merger Agreement, Cendant has terminated its pending tender offer for American Bankers shares.

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. In Alliance Marketing, Cendant provides access to travel, shopping, auto, dining and other services worldwide. In Travel Services, Cendant is the leading franchisor of hotels and rental car agencies worldwide, the premier provider of vacation exchange services, a leading fleet management company through PHH and the U.K.'s largest private car park operator through NPC. In Real Estate Services, Cendant is the world's premier franchisor of residential real estate brokerage offices, a major provider of mortgage services to consumers and a global leader in corporate employee relocation. Headquartered in Stamford, CT and Parsippany, NJ, the company has nearly 40,000 employees, operates in over 100 countries and makes more than 100 million customer contacts annually.

American Bankers Insurance Group Inc. (ABIG) concentrates on marketing affordable, specialty insurance products and services through financial institutions, retailers and other entities offering consumer financing as a regular part of their business. ABIG, through its insurance subsidiaries, operates in the United States, Canada, the Caribbean, Latin America and the United Kingdom.