Presentation to Investors

March 2008

Forward-Looking Statements

Statements about future results made in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform g g gAct of 1995. Such forward-looking statements include projections.

These statements are based on current expectations and the current economic environment. Forward-looking statements and projections are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management The Company cautions that these

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of which are beyond the control of management. 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 and projections

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y g p jare specified in the Company's Form 10-K for the year ended December 31, 2007.

This presentation also includes certain non-GAAP financial measures as defined under SEC rules. Where required, a reconciliation of those measures to the most directly comparable GAAP measure is provided in the glossary of this presentation.

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O Financial information for 2008 is estimated as of February 13, 2008.

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Business Overview

We are the leading general-use vehicle rental company in each of North America, Australia, New Zealand and certain

other regions based on published airport statistics.

More Than …

other regions based on published airport statistics.

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6,900 Rental locations

425,000 Vehicles

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30,000 Employees

28 million Transactions

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O 110 million Vehicle rental days

$5.9 billion Annual revenues

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Two-Brand Strategy

Two Brands, One Cost Structure

Customer Touchpoints

• Airport counters and busing

• Loyalty programs

Customer Touchpoints

• Airport counters and busing

• Loyalty programs

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• Reservations and marketing • Reservations and marketing

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Non-Customer Touchpoints

• Management / back-office

• Vehicles and fleet management

• Pricing and yield management

• Systems

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• Claims / insurance

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N T Shared services save in excess of $100 million per year

Rental Car Industry Overview

Oth

Airport Segment Local Segment

Avis21%Alamo

5%

Dollar7%

Thrifty4%

Other2%

Avis Budget8% Hertz

9%All Others

18%

Avis Budget

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Budget11%

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Enterprise8%

5%

27%

Avis Budget 32%

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Hertz28%

National14%

Enterprise65%

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Total Revenue: ~ $11 Billion Total Revenue: ~ $11 Billion

We generate about half our revenues from commercial rentals and half from leisure rentals

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Note: Local segment share amounts are company estimates

We generate about half our revenues from commercial rentals and half from leisure rentals

Margin Opportunities

14%

Pro Forma Car Rental EBITDA Margin

12.3%

10.8% 10.6%

10%

12%

14%

Pro forma for $100 million of cost savings from integration of Budget

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8.3%

6.8%7.2%8%

10%9%

Average8.4%

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4%

6%

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0%

2%

2002 2003 2004 2005 2006 2007

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Strategic Overview

Create sustainable improvements in margins and earnings

Optimize Two-Brand Strategy

Expand Revenue Sources

Maximize Profits

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• Avis, as a premium brand, with premium pricing

• Budget, as value

• Off-airport growth

• Optional insurance products and counter up-sells

• Yield management and pricing optimization

• Rigorous cost controls

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S brand, with corresponding cost structure

• Strong online presence

• Ancillary rental products such as Where2

• Brand extensions

• Fleet diversification

• Deployment of free cash flow

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Develop engines for accelerated earnings growth

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p g g g

Expand Revenue Sources

Where2 is a significant income opportunity for 2008

10%

12%

e

$15 million EBITDA

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6%

8%

e2

Take R

ate EBITDA

$70 million EBITDA

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2%

4%

Wh

ere

$35 million EBITDA

$55 million EBITDA

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0%

2007 2008

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Note: For analytical purposes only based on 96 million rental days, average daily rate for Where2 of $10 and EBITDA margin of approximately 70%

Strategic Overview

Optimization / Multiple Avenues to Increase Margins

Price/Yield Management

Fleet Management

Process Improvement

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• Commercial vs. leisure

• Length of rental

• Peak vs. off-peak

• Ancillary revenues

• Program vs. risk

• Hold periods

• Manufacturers, brands and models

• Productivity / elimination of waste

• Replication of best practices

• Enhanced customer

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• Mileage

• Reservation channel

• Affinity relationship

• Competitive dynamics

• Timing of reservation

• On- vs. off-airport use

• Timing of acceptance and disposition

• Vehicle size and options

• Method of disposition

experience

• Use of LEAN, Six Sigma and other tools

• More than 400 opportunities identified to date

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O • Timing of reservation • Method of disposition identified to date

Target annual savings of $50-$100 million(a) Target annual savings of $100-$150 million(a)

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(a) After full implementation

Performance ExcellenceE mple of P oje t Unde WExamples of Projects Under Way

Replication generates significant savings opportunities

ProjectSingle-site

SavingsAnnual Savings

after Replication

• Standardizing check-in process $300,000 $5,000,000

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• Shuttling 200,000 5,500,000

• Optimizing bus schedules 500,000 1,700,000

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• Process of assigning cars to be relocated 154,000 3,600,000

• Guard services 500,000 2,500,000

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• Degassing 3,500,000

$26,800,000

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Fleet ManagementFleet Compo itionFleet Composition

Fleet is becoming more diversified

21%24%

3% 8%10%

14%

9% 7% 11%16%

22%

75%

100%

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24%

24%

26%

22%

16%

50%

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67%61%

55%44% 40%

25%

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Ri k C 1% 1% 8% 25% 50%

0%

2004 2005 2006 2007 2008E

GM Ford Chrysler Other

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N T Risk Cars ~1% ~1% ~8% ~25% ~50%

Note: Calendar year figures

2008 Opportunities

Management controls key areas of opportunity

Management ControlMarket / Environment

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Performance Excellence Off-airport growth Time & mileage per day

Where2 Insurance replacement Interest rates

Other ancillary revenues New marketing partners Used car market

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Operating cost reductions Carey

Commercial account base

Fleet optimization

Risk vehicles

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Share repurchase

Free cash flow

Employees

Brands

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2007 Highlights

Revenue Drivers

RentalT&M

Revenue

Strategic Progress

• Launched Performance Excellence process

Strategic ProgressRevenue Drivers

RentalDays

Revenue per Day

Domestic Car Rental 4% 0%

International 3% 10%

improvement initiative

• Grew ancillary revenue by 23%

• Increased on-airport share lead over

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Truck Rental (7%) (8%)

psecond-largest competitor

• Expanded off-airport presence, including revenue growth of 9%

Revenue DriversIncome Statement

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• Retained more than 98% of commercial accounts

• Increased Domestic EBITDA by 24% and International EBITDA by 18%

Revenue Drivers

2007($MM)

Vs. 2006Pro Forma

Revenues $5,986 +6%

Income Statement

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• Restructured Truck Rental operations

• Made strategic investment in CareyInternational

Revenues $5,986 +6%

EBITDA 409 +1%

Pretax Income 198 +15%

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International

Note: EBITDA presented for 2007 excludes separation credit of $5 million and pretax income excludes the separation credit and goodwill impairment

2008 Outlook

We expect our revenues and pretax income to increase in 2008

• Domestic rental days projected to increase 3-5%, aided by off-airport growth

• Domestic time and mileage revenue per rental day projected to increase modestly

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modestly

• Performance Excellence initiative expected to generate $40 million of savings

Domestic fleet costs e pected to ise 4 6% on a pe nit basis

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S • Domestic fleet costs expected to rise 4-6% on a per-unit basis

• Cost structure is 70% variable, providing flexibility to adjust to macroeconomic changes

l ll l k l d d

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O • Seasonality will likely increase industry-wide

• Free cash flow target is 85% of pretax income

Not a federal cash taxpayer

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SensitivitiesC Rent l Ope tionCar Rental Operations

EBITDA Impact of a 1% Change in Driver ($ in millions)

$42$45

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$19

$30

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$14

$19

$15

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$0

T&M Revenue per Rental Day

Rental Days Utilization

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Capital Markets

Vehicle financing secured for 2008

• 2008 peak financing requirements in place

New $800 million bank conduit facility closed in February

Pricing 50 basis points higher than existing conduit facility

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Pricing 50 basis points higher than existing conduit facility

Opportunistically issue term debt when pricing becomes attractive

• Only $400 million of ABS term debt maturities in 2009

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• No current borrowings under $1.5 billion corporate revolver

• No corporate debt maturities until 2012

• After-tax free cash flow yield of 11%

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Note: Free cash flow yield based on 2007 free cash flow excluding separation-related payments

Key Investment Considerations

• Well-known and differentiated brands

L di iti i th i t t• Leading position in the on-airport segment

• Significant free cash flow

• Established and loyal customer base

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• Strong and experienced management team

• Significant opportunities for margin expansion

• Multiple avenues for long-term revenue and earnings growth

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See glossary for definition of free cash flow

Key Revenue Drivers

Car Rental Days Car Rental Time and Mileage per Rental Day

$40.52

$42

$44

Combo: Line with column Combo: Line with column

103107

120

(in millions)

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$39.56

$38.74

$37.96

$39.96$40.52

$38

$40

8588

101 103

80

100

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$32

$34

$36

40

60

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We project 3-5% growth in rental days and modest pricing increases in 2008

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Revenue and EBITDA Growth(in million )

Combo: Line with column Combo: Line with column

Revenue EBITDA

(in millions)

$5 628

$5,986

$6,500 $550

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$4,599$4,709

$5,316

$5,628

$4,500

$5,500 $467

$439

$405 $409

$400

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$2,500

$3,500$328

$250

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( ) P f EBITDA i ff h f i d ib d i h l d l d i d i

(a) (b)

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N T (a) Pro forma EBITDA gives effect to the pro forma transactions described in the glossary and excludes separation and restructuring costs

(b) Excludes separation costs

Note: Avis Budget acquired a substantial portion of the assets of Budget Group in November 2002

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Glossary

EBITDA excluding separation-related expenses

EBITDA is presented excluding separation expenses (credits), which excludes costs that were incurred in connection with the execution of the plan to separate Cendant (as we were formerly known) into four independent companies, which amounted to $(5) million in 2007. We define EBITDA as income from continuing operations before non-vehicle related depreciation and amortization, any goodwill impairment charge, non-vehicle related interest (other than intercompany interest related to tax benefits and working capital advances) and income taxes. EBITDA should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with GAAP and our presentation of EBITDA may not be comparable to similarly-titled measures used by other companies.

Reconciliation of Avis Budget Group, Inc. EBITDA excluding separation-related costs, net to Avis Budget Group, Inc. loss before income taxes:

(in millions)Year Ended

December 31, 2007Avis Budget Group, Inc. EBITDA excluding separation-related expenses 409$

Less: Separation-related costs net (5)

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Less: Separation-related costs, net (5) Non-vehicle related depreciation and amortization 84 Interest expense related to corporate debt, net 127 Goodwill impairment 1,195 Avis Budget Group, Inc. loss before income taxes (992)$

Income before income taxes, excluding separation-related costs, net and goodwill impairment

Income before income taxes is presented excluding separation expenses (credits) and the 2007 goodwill impairment. Separation expenses (credits) were costs incurred in ti ith th ti f C d t ( f l k ) i t f i d d t i d t d t ($5) illi i th f th t 2007 Th C

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Reconciliation of Avis Budget Group, Inc. income before income taxes, excluding separation-related costs, net and goodwill impairment to loss beforeincome taxes:

(in millions)Year Ended

connection with the separation of Cendant (as we were formerly known) into four independent companies, and amounted to ($5) million in the fourth quarter 2007. The Company recorded a charge of $1,195 million for the impairment of goodwill during the fourth quarter 2007, primarily reflecting the decline in the market value of the Company's common stock compared to its book value.

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O December 31, 2007

Avis Budget Group, Inc. income before income taxes, excluding separation-related expenses and goodwill impairment 198$

Less: Separation-related costs, net (5) Goodwill impairment 1,195 Avis Budget Group, Inc. loss before income taxes (992)$

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Glossary

Pro forma Adjustments

• Establishment of a $2.375 billion senior credit facility, of which $838 million was drawn at December 31, 2006f $ b ll f d

The following table presents our pro forma financial data for the period ended December 31, 2006. All of these financial data are for Avis Budget Car Rental, LLC and its subsidiaries, the companies that comprise Avis Budget Group, Inc.'s vehicle rental business. The pro forma information was derived from Avis Budget Car Rental, LLC's selected historical financial data and adjusted to give effect to the following transactions:

• Issuance of $1.0 billion of senior unsecured notes• Repayment of approximately $1.875 billion of debt under vehicle programs with proceeds from credit facility borrowings and the issuance of senior notes• Elimination of interest income related to intercompany balances• Reversal of allocated corporate general overhead costs and inclusion of estimated stand-alone corporate costs

The pro forma financial data assume that the pro forma transactions occurred on January 1, 2006. Management believes that the assumptions used to derive the pro forma financial data are reasonable under the circumstances and given the information available. The pro forma financial data have been provided for informational purposes only and are not necessarily indicative of the financial condition or results of future operations or the actual results that would have been achieved had the pro forma transactions occurred on the date indicated. For risk factors that could adversely affect our business, please see "Forward-Looking Statements" included in the beginning of this presentation.

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Reconciliation of Pro Forma EBITDA to Pro Forma Income before Income Taxes for Avis Budget Car Rental

(in millions)2006

Revenues 5,628$

Avis Budget Car Rental EBITDA 370$ Adjustments:

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Interest on corporate debt (A) 137 EBITDA less interest on corporate debt (EBTDA) 268

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p ( )Non-vehicle depreciation and amortization (B) 96 Pro Forma Pretax income 172$

(A) Represents interest expense on the April 2006 financings. (B) Includes additional depreciation and amortization associated with assets transferred from the corporate parent of Avis Budget Car Rental in conjunction with the

separation transactions. (C) Represents allocated general corporate overhead costs, which will be replaced by stand-alone corporate costs. (D) Represents the removal of intercompany interest income on the intercompany balance with the corporate parent of Avis Budget Car Rental, removal of interest

expense related to debt under vehicle programs (as associated debt was repaid with proceeds from the credit facility and senior notes) and the impact of

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expense related to debt under vehicle programs (as associated debt was repaid with proceeds from the credit facility and senior notes) and the impact ofincreased Truck financing costs due to the separation transaction.

(E) Estimate of costs to operate as a stand-alone public company without Realogy, Wyndham and Travelport.

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Glossary

EBITDA Reconciliation for Avis Budget Car Rental

(in millions) 2002 2003 2004 2005 2006EBITDA 300 328 467 439 370

EBITDA as presented in slide A-2 for 2002-2006 and as referred to on slide 8 is EBITDA for Avis Budget Car Rental, LLC, which represents income from continuing operations before non-vehicle related depreciation and amortization, non-vehicle related interest (other than intercompany interest related to tax benefits and working capital advances) and income taxes.

Less: Non-vehicle depreciation and amortization 43 73 73 80 86 Less: Non-vehicle interest, net* 42 40 10 6 94 Income before income taxes 215 215 384 353 190 Less: Provision for income taxes 82 79 147 129 105 Income before cumulative effect of accounting changes 133 136 237 224 85 Less: Cumulative effect of accounting changes, net of tax - - - (8) - Net Income 133 136 237 216 85

* Does not reflect intercompany interest income of $2 million, $2 million, and $26 million during 2003, 2004 and 2005, respectively, related to tax benefits and working capital advances,

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p y $ , $ , $ g , , p y, g p ,which are included in EBITDA. There is no intercompany interest income included in EBITDA on a pro forma basis.

EBITDA used in the calculation of the margins presented on slide 8 is adjusted for 2002-2007 primarily to exclude revenues and EBITDA for our Truck Rental segment and for 2002-2006 to give effect to pro forma adjustments on the previous slide. Such pro forma adjustments for 2002-2006 total $67 million, $122 million, $84 million, $61 million and $26 million, respectively.

Represents Net Cash Provided by Operating Activities adjusted to include the cash inflows and outflows relating to (i) capital expenditures and GPS navigational units, (ii) the investing and financing activities of our vehicle programs, (iii) asset sales and (iv) the change in restricted cash. We believe that 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 f t th th h b i d l t ti iti i iti F C h Fl h ld t b t d b tit t i i ti lt

Free Cash Flow Definition

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S 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, and our presentation of Free Cash Flow may not be comparable to similarly-titled measures used by other companies.

Reconciliation of Free Cash Flow excluding separation-related cash outflows to Net Cash Provided by Operating Activities

Year Ended(in millions) December 31, 2007Free Cash Flow excluding separation-related cash outflows 128$ Less: Net separation-related cash outflows (39)

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O Free Cash Flow 89

Cash (inflows) outflows included in Free Cash Flow but not reflected in Net Cash Provided by Operating Activities Investing activities of vehicle programs 1,756 Financing activities of vehicle programs (235) Capital expenditures 94 Proceeds received on asset sales (23) Change in restricted cash 18 Purchase of GPS navigational units 15Net Cash Provided by Operating Activities 1,714$

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Represents Free Cash Flow excluding separation-related cash outflows (per above) on December 31,2007 divided by market capitalization on January 31, 2008.Free Cash Flow Yield Definition