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AVIS EUROPE, GE CAPITAL FLEET REACH AGREEMENT IN PRINCIPAL FOR SALE OF AVIS LEASE'S EUROPEAN VEHICLE LEASING AND FLEET MANAGEMENT BUSINESS

AVIS EUROPE, GE CAPITAL FLEET REACH AGREEMENT IN PRINCIPAL FOR SALE OF

AVIS LEASE'S EUROPEAN VEHICLE LEASING AND FLEET MANAGEMENT BUSINESS
 STAMFORD, Conn., Feb. 26 /PRNewswire/ -- Avis Europe and GE Capital Fleet Services announced today that they have reached an agreement in principal for the sale of Avis Lease's European vehicle leasing and fleet management business consisting of 120,000 vehicles in 14 European countries. GE Capital will also acquire the right to use the Avis Lease name.
 Avis Lease has total assets of approximately $900 million U.S. (L500 million). Details of the sale to GE Capital were not disclosed.
 "This is part of our strategy to expand GE Capital's focused approach in European markets, as we demonstrated with our earlier purchases of private label credit cards and consumer auto finance," said Gary C. Wendt, chief executive officer of GE Capital. "This proposed transaction exemplifies how GE Capital is committed to bringing specialized value-added services to its customers."
 GE Capital Fleet Services, headquartered in Eden Prairie, Minn., is the largest corporate fleet management company in North America with more than 500,000 cars, trucks and specialty vehicles under lease or service management.
 "Fleet Services has been one of our most dynamic businesses and this should provide a positive contribution to the bottom line in our first year of ownership," Wendt said.
 Teresa LeGrand, president and chief executive officer of GE Capital Fleet Services, said, "The combined strengths of Avis Lease and GE Capital Fleet Services will create the foundation of a global vehicle leasing network to serve our respective customers with the highest level of quality service."
 Avis Europe's chairman and chief executive, Alun Cathcart, said that the proposed transaction "would ensure that the success and growth of Avis Lease throughout Europe will continue with all the benefits of a world leader in GE Capital Fleet Services.
 "The proposed transaction will have positive effects on our Rent A Car businesses in Europe," Cathcart added. "Avis Lease will continue to use Avis Rent A Car for its pre-delivery and replacement car requirements and many existing synergies will remain in place."
 GE Capital Fleet Services is one of 20 businesses that comprise GE Capital. GE Capital, headquartered in Stamford, is one of the United States' largest diversified financial services companies with over $80 billion in assets.
 -0- 2/26/92
 /CONTACT: Anthony B. Zehnder of GE Capital, 203-357-4728 (day) or 203-657-3824 (evening); Robert Cochrane of GE Capital Fleet, 612-828-2916 (day) or 612-683-1174 (evening); Alun Cathcart (London), 034-441-7236; or Ken Hanna (London), 034-441-7233, both of Avis Europe/ CO: GE Capital Fleet Services, Avis Europe ST: Connecticut, Minnesota IN: SU: TNM


KH -- MN013 -- 2885 02/26/92 14:40 EST
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Publication:PR Newswire
Date:Feb 26, 1992
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