Avis Europe plc Pre-close Period Trading Update.

Business Editors

BRACKNELL, Berkshire--(BUSINESS WIRE)--December 17, 2001

Avis Europe plc, the leading car rental company in Europe, Africa, the Middle East and Asia, gives the following update on trading ahead of its close period for the year ended December 31, 2001.

On September 6, the Group reported that revenue growth was 8.6% for the first six months and that actions to limit the growth in fleet costs in recent years were beginning to deliver benefits. This revenue growth trend continued into the peak months of July and August.

As indicated in the announcement on September 21, volumes were subsequently impacted by the events of September 11 and the generally reduced economic growth expectations. However, the Group has been less impacted than the majority of transportation and travel companies due to its balanced customer mix and spread of geographic markets. About 50% of our business is generated through airport locations and the balance through city, rail and resort locations.

Overall revenues have fallen 5% below prior year since September 11. Within overall revenue, the combination of the replacement and leisure segments within Europe, which together account for 58% of total annual revenue, has been slightly ahead of last year. Our corporate business, which accounts for 27% of total annual revenue has been trading 10% below prior year and international, principally transatlantic, which accounts for 15% of total annual revenue has been 25% below prior year.

Current revenue trends are expected to continue into the first quarter of 2002.

Since September 11, we have successfully reduced our fleet and adjusted operational staffing levels to the current levels of demand such that our operational efficiency measures of utilization and productivity are expected to return to normalized levels this month.

Whilst there will be some growth in revenues for the year overall, the exceptional circumstances of the last quarter which generated the sharp decline in volume and subsequent adjustment to our cost base will naturally impact margins for the year 2001 as a whole. Profit before tax for the year is expected to be consistent with brokers forecasts issued since September 11.

The Group's results for the year ended December 31, 2001 will be announced on February 25, 2002.

Avis Europe plc rents cars under the Avis brand name to customers in 112 countries. Avis Europe's ordinary shares trade on the London Stock Exchange. Prices may be accessed on Bloomberg under the symbol AVE LN and Reuter Equities 3000 Service under AVE.L. Additional information is available on Avis Europe's internet site: www.avis-europe.com.