Cendant Statement Regarding U.S. Attorney and SEC Announcement

Jun 14, 2000, 01:00 ET from Cendant Corporation

    NEW YORK, June 14 /PRNewswire/ -- Cendant Corporation (NYSE:   CD) released
 the following statement relating to announcements made by the U.S. Attorney
 and SEC today regarding the pleas by former officers of CUC in connection with
 the fraud disclosed on April 15, 1998:
     "The actions by the U.S. Attorney and the SEC today establish that this
 was a sinister fraud of more than 12 years' duration, which current Cendant
 management inherited from the former CUC.  It validates what we have said all
 along; that this elaborate scheme, designed by senior management of the former
 CUC, hid the fraud from the public and from the former HFS prior to the
 CUC/HFS merger.  Additionally, since the fraud was going on for at least
 12 years, it supports Cendant's contention that it could not have occurred
 without the gross negligence, if not more, of CUC's auditors.  The Company
 will do everything it can to cooperate with the SEC and U.S. Attorney's office
 with their continuing investigations to ensure that those remaining
 responsible parties, including former members of CUC's senior management, are
 brought to justice."

SOURCE Cendant Corporation