Cendant Reports Better Than Expected First Quarter 2001 Results

1Q Adjusted EPS of $0.19 Exceeds Projection by $0.03



Company Increases Full Year Projected 2001 Adjusted EPS to $1.00 Compared with

$0.91 in 2000 and Increases 2001 Second Quarter Outlook to $0.27 from $0.26



1Q Adjusted EPS $0.19 in 2001 vs. $0.22 in 2000

1Q Reported EPS from Continuing Operations $0.28 in 2001 vs. $0.15 in 2000



Apr 18, 2001, 01:00 ET from Cendant Corporation

    NEW YORK, April 18 /PRNewswire/ -- Cendant Corporation (NYSE:   CD) today
 reported better than expected first quarter 2001 results and increased its
 outlook for second quarter and full year 2001.  The Company's four reportable
 segments -- Real Estate Services, Hospitality, Vehicle Services and Financial
 Services -- all exceeded or met forecasts for first quarter 2001, and each
 exceeded last year's results.
     "We are pleased that we have exceeded our projections in the quarter and
 are once again raising our projected results for the full year 2001.  Strong
 contributions from many of our businesses and the addition of the operations
 of Avis to our Vehicle Services segment drove the increase in our first
 quarter EBITDA over prior projections and last year," said Cendant Chairman,
 President and Chief Executive Officer, Henry R. Silverman.  "Despite a
 challenging economic environment, we believe that the diversity of our
 portfolio of companies, which is hedged against economic cycles, coupled with
 our fee-for-services business model will continue to drive growth in revenue
 and earnings in 2001."
     The Company announced that first quarter 2001 Adjusted earnings per share
 from continuing operations (adjusted to remove non-recurring or unusual
 items), excluding move.com operating results and the effect of an equity
 ownership of Homestore.com ("Adjusted EPS") of $0.19 exceeded prior first
 quarter 2001 projections of $0.16.  The Company also announced that based on
 the leading indicators from its business units, the impact of lower interest
 rates and using cash instead of shares to acquire Fairfield Resorts, it has
 increased its second quarter 2001 Adjusted EPS projection to $0.27 from the
 prior projection of $0.26 and its full year 2001 projection to $1.00 from the
 prior projection of $0.95.  This compares with 2000 actual Adjusted EPS of
 $0.91.  The Company anticipates that further improvements in existing
 operations, benefits from recent acquisitions and other strategic activity may
 result in further increases in projected earnings for 2001.
     The Company noted that 2001 Adjusted EPS is now projected to be 10% ahead
 of last year, despite 2001 being burdened by an estimated $0.07 per share of
 additional interest ($0.03 in the first quarter) resulting from the settlement
 of the Company's principal class action litigation.  In addition, the prior
 year's first quarter benefited from a previously disclosed $0.03 per share of
 financial income derived from certain of the Company's investments.
 
     Recent Activities
     Consistent with its new growth agenda, the Company has completed several
 strategic transactions:
     * Acquired the remaining shares of Avis Group Holdings not already owned
       for approximately $937 million in March 2001.  This transaction was
       immediately accretive to earnings.
     * Acquired Fairfield, the largest independent vacation ownership company
       in the United States, in April 2001 for approximately $690 million.
       This transaction is expected to be immediately accretive to earnings.
     * Acquired Holiday Cottages, a leading provider of holiday cottage rentals
       in Europe, in January 2001 and RCI Southern Africa, a timeshare exchange
       business, in March 2001.
     * Sold its full service real estate Internet portal, move.com, along with
       certain ancillary businesses, to Homestore.com for more than
       $700 million in February 2001.  The transaction resulted in an
       approximately 10 times return on Cendant's investment.  Cendant
       currently owns approximately 19% of the outstanding shares of
       Homestore.com.
     * Completed an agreement whereby Merrill Lynch outsourced its mortgage
       origination and servicing operations to Cendant Mortgage, effective
       January 2001.
     * Raised $1.5 billion through a common stock and senior zero coupon
       convertible notes offering in February 2001.
 
     First Quarter Segment Results
     The underlying discussion of results from continuing operations focuses on
 Adjusted EBITDA, which is defined as earnings before non-operating interest,
 income taxes, depreciation, amortization, minority interest and equity in
 Homestore.com, adjusted to exclude certain items which are of a non-recurring
 or unusual nature and are not measured in assessing segment performance or are
 not segment specific.  Such discussion is the most informative representation
 of how management evaluates performance and allocates resources.
     In connection with the significant acquisitions and dispositions of
 businesses completed during 2001, we have realigned the operations and
 management of our businesses.  Accordingly, we have changed our reportable
 segments to coincide with this realignment.  Beginning with first quarter
 2001, we have the following reportable operating segments:  Real Estate
 Services (consisting of the Company's three real estate brands, mortgage and
 relocation services); Hospitality (consisting of the Company's nine lodging
 brands, timeshare, travel agency and cottage rental); Vehicle Services
 (consisting of car rental, vehicle management services and National Car
 Parks); and Financial Services (consisting of insurance related services,
 financial services enhancement products and tax preparation services).
 Additionally, Corporate and Other includes unallocated corporate overhead and
 the operating results of certain other non-material business units, some of
 which have been disposed.  All prior periods have been restated to reflect the
 change in segments. (See Table 3 for first quarter 2001 and 2000 Revenues and
 Adjusted EBITDA by Segment; Table 4 for Revenues and Adjusted EBITDA by
 Segment for the quarters and full year of 2000; Table 5 for expanded first
 quarter 2001 and 2000 Segment Revenue Driver Analysis and Table 6 for Segment
 Revenue Driver Analysis for the quarters of 2000.)
 
     Real Estate Services
                                        2001            2000         % change
     Revenues                           $339            $289            17%
     Adjusted EBITDA                    $132            $114            16%
     Adjusted EBITDA Margin               39%             39%
 
     The increase in operating results was principally driven by a significant
 increase in mortgage loan production, growth in our mortgage servicing
 portfolio and increased relocation service based fees.  Recurring royalties
 from real estate franchising were essentially unchanged despite soft
 industry-wide conditions, particularly in California, due to growth in our
 franchise systems as a result of franchise sales and NRT acquisitions.
 
     Hospitality
                                        2001            2000         % change
     Revenues                           $264            $242             9%
     Adjusted EBITDA                    $104             $91            14%
     Adjusted EBITDA Margin               39%             38%
 
     Revenues and Adjusted EBITDA increased primarily from our timeshare
 operations and the January 2001 acquisition of Holiday Cottages.  Timeshare
 revenues grew due to an increase in members and the number of exchange
 transactions.
 
     Vehicle Services
                                        2001            2000        % change
     Revenues                           $454            $137          231%
     Adjusted EBITDA                     $93             $72           29%
 
     In March 2001, we acquired the remaining 82% of outstanding common shares
 of Avis Group Holdings that we did not already own.  The acquisition was
 accounted for as a purchase and, accordingly, its operating results are
 included since the acquisition date.  Prior to the acquisition, revenue and
 Adjusted EBITDA principally consisted of Avis royalties, earnings from our
 equity investment in Avis and the operations of National Car Parks.
 
     Financial  Services
                                        2001            2000        % change
     Revenues                           $203            $194             5%
     Adjusted EBITDA                     $84             $82             2%
     Adjusted EBITDA Margin               41%             42%
 
     Revenue and Adjusted EBITDA reflect strong tax return volume growth at
 Jackson Hewitt partially offset by modest declines at FISI/BCI due to reduced
 direct mail offerings in prior periods and reduced billings and collections of
 insurance premiums.
 
     2001 Outlook
     The Company raised full year 2001 projected Adjusted EPS to $1.00 compared
 with most recent 2001 projections of $0.95 (and original 2001 projections of
 $0.91) and compared with $0.91 for full year 2000. The raised outlook for 2001
 reflects strong operating performance across our comparable business units, an
 increased contribution from Avis in first quarter 2001, reduced interest
 expense and lower projected weighted average shares outstanding. The Company
 also raised second quarter 2001 projected Adjusted EPS to $0.27 compared with
 $0.23 in second quarter 2000, and reiterated that Adjusted EPS in the third
 and fourth quarters of 2001 are also projected to be higher than the
 corresponding quarters in 2000.
     The Company revised its 2001 financial projections from continuing
 operations, excluding the results of move.com/Homestore.com and including the
 results of Avis and Fairfield, as follows:
 
     ($ in millions)
                                 Current 2001        Prior 2001     2000 Annual
                                  Projection         Projection
     Adjusted EBITDA:
       Real Estate Services      $825 - $845              N/A          $752
       Hospitality               $535 - $550              N/A          $394
       Vehicle Services          $530 - $545              N/A          $306
       Financial Services        $210 - $220              N/A          $200
       Corporate and Other        ($45 - $55)             N/A          ($15)
     Total Adjusted EBITDA   $2,060 - $2,100  $2,015 - $2,060        $1,637
     Depreciation and
      Amortization               $450 - $460      $425 - $435          $324
     Interest Expense, net       $255 - $270      $335 - $350          $146
     Effective Tax Rate
      on Adjusted Results               35.2%            35.2%         34.0%
     Minority Interest                  $29               $31           $84
     Weighted Average Shares
     Outstanding (millions)       875 - 895         900 - 925           762
     Capital Expenditures       $275 - $325               N/A          $199
 
     The increase in net interest expense in 2001 compared with 2000 is
 principally due to the Company's principal class action litigation settlement
 obligation.  The Company expects year-over-year interest expense comparisons
 to improve by fourth quarter 2001 as it discharges the liability and
 anniversaries the expense recorded in the prior year.  The decrease in
 projected interest expense compared with the prior projection is due to lower
 corporate borrowing costs, including the February 2001 issuance of zero coupon
 convertible notes.  The higher 2001 tax rate is principally a result of the
 acquisition of Avis; however, the Company continues to examine ways to reduce
 its 2001 effective tax rate.  Reduced minority interest in 2001 is primarily a
 result of the retirement of the Feline PRIDES in February 2001.  The increase
 in projected weighted average shares outstanding in 2001 compared with 2000 is
 primarily the result of the issuance of 61 million shares of common stock in
 connection with the retirement of Feline PRIDES and the issuance of 46 million
 shares in February 2001. The increased projected capital spending and
 depreciation and amortization in 2001 is primarily related to the acquisitions
 of Avis and Fairfield, as well as Holiday Cottages and RCI Southern Africa.
 
     First Quarter Balance Sheet
     * As of March 31, 2001, we had approximately $2.2 billion of cash and cash
       equivalents and $4.7 billion of debt and minority interest. In
       February 2001, we issued zero coupon convertible senior notes for gross
       proceeds of $900 million.
     * As of March 31, 2001 the net debt to total capital ratio was 32%.  The
       ratio of Adjusted EBITDA, excluding move.com/Homestore.com, to net
       interest expense was 7.1 in first quarter 2001.
     * In first quarter 2001 we paid $250 million to a settlement trust,
       reducing the net outstanding obligation associated with the principal
       class action litigation settlement at March 31, 2001 to $2.25 billion.
     * Common shares outstanding increased in first quarter 2001 primarily from
       the issuance of 61 million shares in connection with the retirement of
       $1.7 billion of Feline PRIDES and the sale of 46 million shares in
       February 2001.
 
     First Quarter EPS Items
     Reported EPS for CD common stock includes Cendant Group operations and a
 retained interest in Move.com Group. (See Table 2 for calculation of
 earnings.) Reported EPS from continuing operations for Cendant Group was
 $0.28 in first quarter 2001 and $0.15 in first quarter 2000. The following are
 the significant items reflected in reported results from continuing operations
 that are considered to be of an unusual or non-recurring nature for purposes
 of deriving Adjusted EBITDA and Adjusted EPS:
 
     First Quarter 2001
     * A net gain of $435 million ($261 million after tax) on the disposition
       of businesses, primarily related to the sale of move.com.  Cendant
       Group's retained interest in the move.com after tax gain was
       $234 million or $0.28 per share.
     * A charge totaling $95 million ($62 million or $0.07 per share after tax)
       to fund a contribution to an independent technology trust responsible
       for providing technology initiatives for the benefit of current and
       future franchisees at Century 21, Coldwell Banker and ERA.
     * A charge totaling $85 million ($56 million or $0.07 per share after tax)
       incurred in conjunction with the development and launch of an Internet
       travel portal.  The Company's financial contribution to the independent
       entity developing the portal, which is required to be expensed
       immediately, is expected to provide attractive financial returns to
       Cendant and its franchisees with limited risk and to significantly
       expand the Internet presence of the Company's travel brands.
     * A net loss of $18 million after tax or $0.02 per share related to
       Cendant's proportionate ownership in Homestore.com.
     * A charge of $11 million ($7 million or $0.01 per share after tax) for
       litigation settlement and investigation costs, net of a credit for
       distributed Feline PRIDES Rights that expired unexercised.
     * Merger related charges totaling $8 million ($5 million or $0.01 per
       share after tax) related to the acquisition and integration of Avis.
     * A charge of $7 million ($5 million or $0.01 per share after tax) related
       to a special contribution made to a newly formed Cendant Charitable
       Foundation.
 
     First quarter 2000
     * A net credit of $38 million ($25 million or $0.03 per share after tax)
       for disallowed claims in connection with the Feline PRIDES class action
       litigation, net of investigation related costs.
     * Restructuring and other unusual charges totaling $86 million
       ($56 million or $0.07 per share after tax).
     * Charges totaling $13 million ($9 million or $0.01 per share after tax)
       for losses on the disposition of businesses.
 
     Investor Conference Call
     Cendant will host a conference call to discuss first quarter results on
 Thursday, April 19, 2001 at 1:00 p.m. Eastern Time.  Investors may access this
 call live at http://www.Cendant.com or dial in to 913-981-5571.  A web replay
 will be available beginning at 4:00 p.m. Eastern Time on April 19, 2001 at
 http://www.Cendant.com.  A telephone replay will be available from 4:00 p.m.
 Eastern Time on April 19, 2001 until 8:00 p.m. on April 23 at 719-457-0820,
 access code: 461306.
 
     Statements about future results made in this release constitute
 forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995. These statements are based on current
 expectations and the current economic environment. 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 are specified in the Company's Form 10-K for the year ended
 December 31, 2000.
     Such forward-looking statements include projections.  Such projections
 were not prepared in accordance with published guidelines of the American
 Institute of Certified Public Accountants or the SEC regarding projections and
 forecasts, nor have such projections been audited, examined or otherwise
 reviewed by independent auditors of Cendant or its affiliates.  In addition,
 such projections are based upon many estimates and are inherently subject to
 significant economic and competitive uncertainties and contingencies, many of
 which are beyond the control of management of Cendant and its affiliates.
 Certain of such uncertainties and contingencies are specified in Cendant's
 Form 10-K for the year ended December 31, 2000.  Accordingly, actual results
 may be materially higher or lower than those projected.  The inclusion of such
 projections herein should not be regarded as a representation by Cendant or
 its affiliates that the projections will prove to be correct.
 
     Cendant Corporation is a diversified global provider of business and
 consumer services primarily within the real estate and travel sectors. The
 Company's fee-for-service businesses include hotel, real estate and tax
 preparation franchising; rental cars, fleet leasing and fuel cards; mortgage
 origination and employee relocation; customer loyalty programs; vacation
 exchange and rental services and vacation interval sales.  Other business
 units include the UK's largest private car park operator and electronic
 reservations processing for the travel industry.  With headquarters in New
 York City, the Company has approximately 60,000 employees and operates in over
 100 countries.
     More information about Cendant, its companies, brands and current SEC
 filings may be obtained by visiting the Company's Web site at
 http://www.Cendant.com or by calling 877-4INFO-CD (877-446-3623).
 
     Table 1
                        Cendant Corporation and Subsidiaries
                         CONSOLIDATED STATEMENTS OF INCOME
                        (In millions, except per share data)
 
 
                                                         Three Months Ended
                                                               March 31,
                                                        2001              2000
     Revenues
       Service fees, net                                $893              $812
       Vehicle-related                                   398                70
       Other                                              12                63
     Net revenues                                      1,303               945
 
     Expenses
       Operating                                         433               338
       Marketing and reservation                         158               140
       Vehicle depreciation, lease charges
        and interest, net *                              181                --
       General and administrative                        135               107
       Non-vehicle depreciation and
        amortization                                      95                81
       Other charges (credits):
         Restructuring and other unusual
          charges                                        186                86
         Merger-related costs                              8                --
         Litigation settlement and related
          costs                                           11               (38)
       Non-vehicle interest, net                          57                25
     Total expenses                                    1,264               739
 
     Net gain (loss) on dispositions of
      businesses                                         435               (13)
 
     Income before income taxes, minority
      interest and equity in Homestore.com               474               193
     Provision for income taxes                          189                66
     Minority interest, net of tax                        13                16
     Equity in Homestore.com, net of tax                  18                --
     Income from continuing operations                   254               111
     Discontinued operations:
       Income from discontinued
        operations, net of tax                            --                16
       Gain on disposal of discontinued
        operations, net of tax                            23                --
     Income before extraordinary loss and
      cumulative effect of accounting change             277               127
     Extraordinary loss, net of tax                       --                (2)
     Income before cumulative effect of
      accounting change                                  277               125
     Cumulative effect of accounting
      change, net of tax                                 (38)              (56)
     Net income                                         $239               $69
 
     CD common stock income per share
       Basic
         Income from continuing operations             $0.29             $0.15
         Net income                                    $0.28             $0.10
 
       Diluted
         Income from continuing operations             $0.28             $0.15
         Net income                                    $0.26             $0.09
 
       Weighted average shares
         Basic                                           790               717
         Diluted                                         830               751
 
     Move.com common stock income per share
       Basic
         Income from continuing operations            $10.41
         Net income                                   $10.34
 
       Diluted
         Income from continuing operations            $10.13
         Net income                                   $10.07
 
       Weighted average shares
         Basic                                             2
         Diluted                                           3
 
     * Includes interest charges of $39 million for the three months ended
       March 31, 2001.
 
     Table 2
                      Cendant Corporation and Subsidiaries
     Supplemental Income (Loss) Per Share Data - Calculation of Earnings by
                             Class of Common Stock
                      (In millions, except per share data)
 
                                                      Three Months Ended
                                                         March 31, 2001
                                                      As                As
                                                   Reported          Adjusted
 
     CD common stock income per share
     Income from continuing operations:
       Income from continuing operations, including
        Cendant Group's retained interest
        in Move.com Group                             $233              $146
       Convertible debt interest, net of tax             3                 3
       Adjustment to Cendant Group's retained interest
        in Move.com Group (A)                           (6)               --
       Income from continuing operations
        - Diluted                                     $230              $149
 
     Net income:
       Net income, including Cendant Group's
        retained interest in Move.com Group           $218              $146
       Convertible debt interest, net of tax             3                 3
       Adjustment to Cendant Group's retained
        interest in Move.com Group (A)                  (6)               --
       Net income - Diluted                           $215              $149
 
     Weighted average shares outstanding:
       Basic                                           790               790
       Diluted                                         830               830
 
     Income per share:
       Basic
         Income from continuing operations           $0.29             $0.18 *
         Net income                                   0.28              0.18 *
 
       Diluted
         Income from continuing operations           $0.28             $0.18 *
         Net income                                   0.26              0.18 *
 
     Move.com common stock income (loss) per share
     Income (loss) from continuing operations (B):
       Income (loss) from continuing operations,
        excluding Cendant Group's retained
        interest in Move.com Group                     $21               $(1)
       Adjustment to Cendant Group's retained
        interest in Move.com Group (A)                   6                --
       Income from continuing operations - Diluted     $27               $(1)
 
     Net income (loss) (C):
       Net income (loss), excluding Cendant
        Group's retained interestin Move.com Group     $21               $(1)
       Adjustment to Cendant Group's retained
        interest in Move.com Group (A)                   6                --
       Net income - Diluted                            $27               $(1)
 
     Weighted average shares outstanding (D):
       Basic                                             2                 2
       Diluted                                           3                 3
 
     Income (loss) per share:
       Basic
         Income (loss) from continuing operations   $10.41            $(0.26)
         Net income (loss)                           10.34             (0.26)
 
       Diluted
         Income (loss) from continuing
          operations                                $10.13            $(0.25)
         Net income (loss)                           10.07             (0.25)
 
     *    Includes Cendant Group's retained interest in the adjusted results of
          operations of Move.com Group.
     (A)  Amount represents the differential between Cendant Group's retained
          interest in Move.com Group for its basic and diluted income (loss)
          per share calculations.
     (B)  In thousands, the As Reported and As Adjusted basic income (loss)
          from continuing operations attributable to Move.com common stock was
          $20,983 and ($525), respectively, and the As Reported and As Adjusted
          diluted income (loss) from continuing operations attributable to
          Move.com common stock was $27,086 and ($678), respectively.
     (C)  In thousands, the As Reported and As Adjusted basic net income (loss)
          attributable to Move.com common stock was $20,847 and ($525),
          respectively, and the As Reported and As Adjusted diluted net income
          (loss) attributable to Move.com common stock was $26,911 and ($678),
          respectively.
     (D)  In thousands, the As Reported and As Adjusted basic and diluted
          weighted average shares outstanding were 2,016 and 2,673,
          respectively.
 
     Table 3
                      Cendant Corporation and Subsidiaries
                   Revenues and Adjusted EBITDA by Segment *
                             (Dollars in millions)
 
                                        Three Months Ended March 31,
 
                                    Revenues          Adjusted EBITDA (A)
                                              %                           %
                                 2001  2000 Change    2001     2000 (B)  Change
     Real Estate Services        $339  $289   17%     $132 (C)  $114      16%
     Hospitality                  264   242    9%      104       91 (F)   14%
     Vehicle Services             454   137  231%       93 (D)   72       29%
     Financial Services           203   194    5%       84       82        2%
     Total Reportable Segments  1,260   862            413      359
     Corporate and Other           43    83     **     (17)(E)    1 (G)    **
     Total Company             $1,303  $945           $396     $360
 
     *   In connection with significant acquisitions and dispositions of
         businesses completed in 2001, the Company realigned the operations and
         management of certain of its businesses.  Accordingly, the Company's
         segment reporting structure now encompasses the following four
         reportable segments:  Real Estate Services, Hospitality, Vehicle
         Services and Financial Services.
 
     **  Not meaningful.
     (A) Defined as earnings before non-operating interest, income taxes,
         depreciation and amortization, minority interest and equity in
         Homestore.com, adjusted to exclude certain items which are of a
         non-recurring or unusual nature and not measured in assessing segment
         performance or are not segment specific.
     (B) Excludes a charge of $86 million in connection with restructuring and
         other initiatives  ($63 million, $11 million and $2 million of
         charges were recorded within the Real Estate Services, Hospitality
         and Financial Services segments, respectively.  Charges of
         $10 million were recorded within businesses not classified by the
         Company as reportable operating segments).
     (C) Excludes a charge of $95 million to fund an irrevocable contribution
         to an independent technology trust responsible for providing
         technology initiatives for the benefit of current and future
         franchisees at Century 21, Coldwell Banker and ERA.
     (D) Excludes a charge of $4 million related to the acquisition and
         integration of Avis Group Holdings, Inc. ("Avis") and includes
         $5 million of interest expense related to debt used in the acquisition
         of Avis.
     (E) Excludes (i) a net gain of $435 million related to the dispositions
         of businesses and (ii) a credit of $14 million to reflect an
         adjustment to the settlement charge recorded in the fourth quarter of
         1998 for the PRIDES class action litigation primarily related to
         Rights that expired unexercised.  Such amounts were partially offset
         by charges of (i) $85 million incurred in connection with the
         creation of Travel Portal, Inc., a company that was created to pursue
         the development of an online travel business, (ii) $25 million for
         investigation-related costs, (iii) $7 million related to a
         contribution to the Cendant Charitable Foundation and (iv) $4 million
         related to the acquisition and integration of Avis.
     (F) Excludes $4 million of losses related to the dispositions of
         businesses.
     (G) Excludes a non-cash credit of $41 million in connection with a change
         to the original estimate of the number of Rights to be issued in
         connection with the PRIDES settlement resulting from unclaimed and
         uncontested Rights.  Such credit was partially offset by (i) $9
         million of losses related to the dispositions of businesses and (ii)
         $3 million of investigation-related costs.
 
     Table 4
                      Cendant Corporation and Subsidiaries
                 2000 Revenues and Adjusted EBITDA by Segment *
                             (Dollars in millions)
 
                                             Year Ended December 31, 2000
 
                                                       Revenues
                                            1st   2nd     3rd  4th     Full
                                            Qtr   Qtr     Qtr  Qtr     Year
     Real Estate Services                  $289  $377    $419  $376  $1,461
     Hospitality                            242   257     278   236   1,013
     Vehicle Services                       137   135     146   150     568
     Financial Services                     194   153     148   143     638
     Total Reportable Segments              862   922     991   905   3,680
     Corporate and Other                     83    51      53    63     250
     Total Company                         $945  $973  $1,044  $968  $3,930
 
                      Cendant Corporation and Subsidiaries
                 2000 Revenues and Adjusted EBITDA by Segment *
                             (Dollars in millions)
 
                                                Year Ended December 31, 2000
 
                                                      Adjusted EBITDA(A)
                                             1st    2nd    3rd    4th     Full
                                             Qtr    Qtr    Qtr    Qtr     Year
     Real Estate Services                   $114   $193   $242   $203     $752
     Hospitality                              91    103    115     85      394
     Vehicle Services                         72     67     81     86      306
     Financial Services                       82     42     42     34      200
     Total Reportable Segments               359    405    480    408    1,652
     Corporate and Other                       1    (45)   (36)   (29)    (109)
     Total Company                          $360   $360   $444   $379   $1,543
 
     (A) In connection with significant acquisitions and dispositions of
         businesses completed during 2001, the Company realigned the
         operations and management of certain of its businesses.
         Accordingly, the Company's segment reporting structure now
         encompasses the following four reportable segments:  Real Estate
         Services, Hospitality, Vehicle Services and Financial Services.
         Amounts are presented herein as if the 2001 segment reporting
         structure was applicable to 2000.
 
     Table 5
                      Cendant Corporation and Subsidiaries
                        Segment Revenue Driver Analysis
                         (Revenue dollars in thousands)
 
                                                  Three Months Ended March 31,
                                                 2001          2000    % Change
     REAL ESTATE SERVICES SEGMENT
 
       Real Estate
         Closed Sides - Domestic (000's )       359,561       372,403      (3%)
         Average Price                         $171,865      $162,908       5%
         Royalty and Marketing Revenue         $103,370      $103,843       --
         Total Revenue                         $117,849      $120,744      (2%)
 
       Relocation
         Service Based Revenue (Referrals,
           Outsourcing, etc.)                   $61,174       $53,606      14%
         Asset Based Revenue (Corporate
          and Government Home Sale Closings
          and Financial Income)                 $41,916       $37,626      11%
          Total Revenue                        $103,090       $91,232      13%
 
       Mortgage
         Production Loans Sold (millions)        $5,916        $3,713      59%
         Production Revenue                     $87,153       $53,279      64%
         Average Servicing Loan Portfolio
          (millions)                            $83,275       $51,955      56%
         Servicing Revenue                      $31,403       $23,444      34%
         Total Revenue                         $118,823       $76,903      55%
 
     HOSPITALITY SEGMENT
 
       Lodging
         RevPar ($)                              $24.17        $24.12       --
         Weighted Average Rooms Available       508,685       501,160       2%
         Royalty, Marketing and
         Reservation Revenue                    $84,484       $83,494       1%
         Total Revenue                         $106,809      $105,643       1%
 
       RCI
         Average Subscriptions                2,562,682     2,336,574      10%
         Number of Timeshare Exchanges          506,590       468,692       8%
         Total Revenue                         $127,005      $115,516      10%
 
     VEHICLE SERVICES SEGMENT (A)
 
       Car Rental
         Rental Days (000's)                      5,395           n/a      n/a
         Time and Mileage Revenue per Day        $39.36           n/a      n/a
         Total Revenue                         $251,028           n/a      n/a
 
       Fleet
         Average Fleet (Leased)                 311,907           n/a      n/a
         Average Number of Cards (000's)          3,554           n/a      n/a
         Total Revenue                         $128,377           n/a      n/a
 
     FINANCIAL SERVICES SEGMENT
 
         Insurance/Wholesale-related
          Revenue                              $143,313      $144,551      (1%)
         Other Revenue                          $59,959       $49,538      21%
         Total Revenue                         $203,272      $194,089       5%
 
       (A)  On March 1, 2001 the Company acquired the remaining shares of Avis
            that were not owned by the Company.
 
     Table 6
                      Cendant Corporation and Subsidiaries
                      2000 Segment Revenue Driver Analysis
                         (Revenue dollars in thousands)
 
                                                 Three Months Ended
                                     March 31,  June 30,   Sept. 30,  Dec. 31,
                                       2000       2000       2000       2000
     REAL ESTATE SERVICES SEGMENT
 
       Real Estate
         Closed Sides - Domestic
          (000's)                     372,403    503,921    518,652    465,072
         Average Price               $162,908   $172,594   $171,856   $172,061
         Royalty and Marketing
          Revenue                    $103,843   $144,092   $145,838   $129,682
         Total Revenue               $120,744   $165,683   $161,945   $144,306
 
       Relocation
         Service Based Revenue
          (Referrals, Outsourcing,
          etc.)                       $53,606    $66,803    $77,085    $70,046
         Asset Based Revenue
          (Corporate and
          Government Home Sale
          Closings and Financial
          Income)                     $37,626    $47,631    $49,583    $45,756
         Total Revenue                $91,232   $114,434   $126,668   $115,802
 
       Mortgage
         Production Loans Sold
          (millions)                   $3,713     $4,746     $6,754     $5,883
         Production Revenue           $53,279    $73,714   $107,798    $78,014
         Average Servicing Loan
          Portfolio (millions)        $51,955    $58,264    $64,298    $69,052
         Servicing Revenue            $23,444    $23,347    $24,355    $38,558
         Total Revenue                $76,903    $97,241   $132,330   $116,749
 
     HOSPITALITY SEGMENT
 
       Lodging
         RevPar ($)                    $24.12     $30.33     $35.17     $25.33
         Weighted Average Rooms
          Available                   501,160    501,929    504,648    506,240
         Royalty, Marketing and
          Reservation Revenue         $83,494   $106,397   $123,738    $89,240
         Total Revenue               $105,643   $129,899   $147,113   $110,659
 
       RCI
         Average Subscriptions      2,336,574  2,341,576  2,362,479  2,377,862
         Number of Timeshare
          Exchanges                   468,692    360,968    386,451    355,537
         Total Revenue               $115,516   $103,311   $107,697   $106,410
 
     FINANCIAL SERVICES SEGMENT
 
         Insurance/Wholesale-
          related Revenue            $144,551   $145,386   $144,921   $139,609
         Other Revenue                $49,538     $7,335     $3,040     $3,141
         Total Revenue               $194,089   $152,721   $147,961   $142,750
 
     Table 7
                      Cendant Corporation and Subsidiaries
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                                 (In billions)
 
                                                     March 31,     December 31,
                                                       2001              2000
     Assets
     Current assets
        Cash and cash equivalents                      $2.2              $1.0
        Other current assets                            2.4               1.4
     Total current assets                               4.6               2.4
 
     Property and equipment, net                        1.4               1.3
     Goodwill, net                                      4.8               3.0
     Other assets*                                      6.0               4.9
     Total assets exclusive of assets
      under programs                                   16.8              11.6
 
     Assets under management and mortgage programs     10.2               2.9
     Total assets                                     $27.0             $14.5
 
     Liabilities and stockholders' equity
     Current liabilities
       Current liabilities                             $2.7              $1.6
       Net liabilities of
        discontinued operations                         0.4               0.3
     Total current liabilities                          3.1               1.9
 
     Long-term debt                                     4.2               1.9
     Stockholder litigation settlement                  2.9               2.9
     Other noncurrent liabilities                       0.6               0.5
     Total liabilities exclusive of
      liabilities under programs                       10.8               7.2
 
     Liabilities under management and
      mortgage programs                                10.5               2.5
     Mandatorily redeemable preferred
      securities issued by subsidiaries                 0.4               2.1
     Total stockholders' equity                         5.3               2.7
     Total liabilities and stockholders' equity       $27.0             $14.5
 
     *  Includes stockholder litigation settlement trust of $607 million.
 
 

SOURCE Cendant Corporation
    NEW YORK, April 18 /PRNewswire/ -- Cendant Corporation (NYSE:   CD) today
 reported better than expected first quarter 2001 results and increased its
 outlook for second quarter and full year 2001.  The Company's four reportable
 segments -- Real Estate Services, Hospitality, Vehicle Services and Financial
 Services -- all exceeded or met forecasts for first quarter 2001, and each
 exceeded last year's results.
     "We are pleased that we have exceeded our projections in the quarter and
 are once again raising our projected results for the full year 2001.  Strong
 contributions from many of our businesses and the addition of the operations
 of Avis to our Vehicle Services segment drove the increase in our first
 quarter EBITDA over prior projections and last year," said Cendant Chairman,
 President and Chief Executive Officer, Henry R. Silverman.  "Despite a
 challenging economic environment, we believe that the diversity of our
 portfolio of companies, which is hedged against economic cycles, coupled with
 our fee-for-services business model will continue to drive growth in revenue
 and earnings in 2001."
     The Company announced that first quarter 2001 Adjusted earnings per share
 from continuing operations (adjusted to remove non-recurring or unusual
 items), excluding move.com operating results and the effect of an equity
 ownership of Homestore.com ("Adjusted EPS") of $0.19 exceeded prior first
 quarter 2001 projections of $0.16.  The Company also announced that based on
 the leading indicators from its business units, the impact of lower interest
 rates and using cash instead of shares to acquire Fairfield Resorts, it has
 increased its second quarter 2001 Adjusted EPS projection to $0.27 from the
 prior projection of $0.26 and its full year 2001 projection to $1.00 from the
 prior projection of $0.95.  This compares with 2000 actual Adjusted EPS of
 $0.91.  The Company anticipates that further improvements in existing
 operations, benefits from recent acquisitions and other strategic activity may
 result in further increases in projected earnings for 2001.
     The Company noted that 2001 Adjusted EPS is now projected to be 10% ahead
 of last year, despite 2001 being burdened by an estimated $0.07 per share of
 additional interest ($0.03 in the first quarter) resulting from the settlement
 of the Company's principal class action litigation.  In addition, the prior
 year's first quarter benefited from a previously disclosed $0.03 per share of
 financial income derived from certain of the Company's investments.
 
     Recent Activities
     Consistent with its new growth agenda, the Company has completed several
 strategic transactions:
     * Acquired the remaining shares of Avis Group Holdings not already owned
       for approximately $937 million in March 2001.  This transaction was
       immediately accretive to earnings.
     * Acquired Fairfield, the largest independent vacation ownership company
       in the United States, in April 2001 for approximately $690 million.
       This transaction is expected to be immediately accretive to earnings.
     * Acquired Holiday Cottages, a leading provider of holiday cottage rentals
       in Europe, in January 2001 and RCI Southern Africa, a timeshare exchange
       business, in March 2001.
     * Sold its full service real estate Internet portal, move.com, along with
       certain ancillary businesses, to Homestore.com for more than
       $700 million in February 2001.  The transaction resulted in an
       approximately 10 times return on Cendant's investment.  Cendant
       currently owns approximately 19% of the outstanding shares of
       Homestore.com.
     * Completed an agreement whereby Merrill Lynch outsourced its mortgage
       origination and servicing operations to Cendant Mortgage, effective
       January 2001.
     * Raised $1.5 billion through a common stock and senior zero coupon
       convertible notes offering in February 2001.
 
     First Quarter Segment Results
     The underlying discussion of results from continuing operations focuses on
 Adjusted EBITDA, which is defined as earnings before non-operating interest,
 income taxes, depreciation, amortization, minority interest and equity in
 Homestore.com, adjusted to exclude certain items which are of a non-recurring
 or unusual nature and are not measured in assessing segment performance or are
 not segment specific.  Such discussion is the most informative representation
 of how management evaluates performance and allocates resources.
     In connection with the significant acquisitions and dispositions of
 businesses completed during 2001, we have realigned the operations and
 management of our businesses.  Accordingly, we have changed our reportable
 segments to coincide with this realignment.  Beginning with first quarter
 2001, we have the following reportable operating segments:  Real Estate
 Services (consisting of the Company's three real estate brands, mortgage and
 relocation services); Hospitality (consisting of the Company's nine lodging
 brands, timeshare, travel agency and cottage rental); Vehicle Services
 (consisting of car rental, vehicle management services and National Car
 Parks); and Financial Services (consisting of insurance related services,
 financial services enhancement products and tax preparation services).
 Additionally, Corporate and Other includes unallocated corporate overhead and
 the operating results of certain other non-material business units, some of
 which have been disposed.  All prior periods have been restated to reflect the
 change in segments. (See Table 3 for first quarter 2001 and 2000 Revenues and
 Adjusted EBITDA by Segment; Table 4 for Revenues and Adjusted EBITDA by
 Segment for the quarters and full year of 2000; Table 5 for expanded first
 quarter 2001 and 2000 Segment Revenue Driver Analysis and Table 6 for Segment
 Revenue Driver Analysis for the quarters of 2000.)
 
     Real Estate Services
                                        2001            2000         % change
     Revenues                           $339            $289            17%
     Adjusted EBITDA                    $132            $114            16%
     Adjusted EBITDA Margin               39%             39%
 
     The increase in operating results was principally driven by a significant
 increase in mortgage loan production, growth in our mortgage servicing
 portfolio and increased relocation service based fees.  Recurring royalties
 from real estate franchising were essentially unchanged despite soft
 industry-wide conditions, particularly in California, due to growth in our
 franchise systems as a result of franchise sales and NRT acquisitions.
 
     Hospitality
                                        2001            2000         % change
     Revenues                           $264            $242             9%
     Adjusted EBITDA                    $104             $91            14%
     Adjusted EBITDA Margin               39%             38%
 
     Revenues and Adjusted EBITDA increased primarily from our timeshare
 operations and the January 2001 acquisition of Holiday Cottages.  Timeshare
 revenues grew due to an increase in members and the number of exchange
 transactions.
 
     Vehicle Services
                                        2001            2000        % change
     Revenues                           $454            $137          231%
     Adjusted EBITDA                     $93             $72           29%
 
     In March 2001, we acquired the remaining 82% of outstanding common shares
 of Avis Group Holdings that we did not already own.  The acquisition was
 accounted for as a purchase and, accordingly, its operating results are
 included since the acquisition date.  Prior to the acquisition, revenue and
 Adjusted EBITDA principally consisted of Avis royalties, earnings from our
 equity investment in Avis and the operations of National Car Parks.
 
     Financial  Services
                                        2001            2000        % change
     Revenues                           $203            $194             5%
     Adjusted EBITDA                     $84             $82             2%
     Adjusted EBITDA Margin               41%             42%
 
     Revenue and Adjusted EBITDA reflect strong tax return volume growth at
 Jackson Hewitt partially offset by modest declines at FISI/BCI due to reduced
 direct mail offerings in prior periods and reduced billings and collections of
 insurance premiums.
 
     2001 Outlook
     The Company raised full year 2001 projected Adjusted EPS to $1.00 compared
 with most recent 2001 projections of $0.95 (and original 2001 projections of
 $0.91) and compared with $0.91 for full year 2000. The raised outlook for 2001
 reflects strong operating performance across our comparable business units, an
 increased contribution from Avis in first quarter 2001, reduced interest
 expense and lower projected weighted average shares outstanding. The Company
 also raised second quarter 2001 projected Adjusted EPS to $0.27 compared with
 $0.23 in second quarter 2000, and reiterated that Adjusted EPS in the third
 and fourth quarters of 2001 are also projected to be higher than the
 corresponding quarters in 2000.
     The Company revised its 2001 financial projections from continuing
 operations, excluding the results of move.com/Homestore.com and including the
 results of Avis and Fairfield, as follows:
 
     ($ in millions)
                                 Current 2001        Prior 2001     2000 Annual
                                  Projection         Projection
     Adjusted EBITDA:
       Real Estate Services      $825 - $845              N/A          $752
       Hospitality               $535 - $550              N/A          $394
       Vehicle Services          $530 - $545              N/A          $306
       Financial Services        $210 - $220              N/A          $200
       Corporate and Other        ($45 - $55)             N/A          ($15)
     Total Adjusted EBITDA   $2,060 - $2,100  $2,015 - $2,060        $1,637
     Depreciation and
      Amortization               $450 - $460      $425 - $435          $324
     Interest Expense, net       $255 - $270      $335 - $350          $146
     Effective Tax Rate
      on Adjusted Results               35.2%            35.2%         34.0%
     Minority Interest                  $29               $31           $84
     Weighted Average Shares
     Outstanding (millions)       875 - 895         900 - 925           762
     Capital Expenditures       $275 - $325               N/A          $199
 
     The increase in net interest expense in 2001 compared with 2000 is
 principally due to the Company's principal class action litigation settlement
 obligation.  The Company expects year-over-year interest expense comparisons
 to improve by fourth quarter 2001 as it discharges the liability and
 anniversaries the expense recorded in the prior year.  The decrease in
 projected interest expense compared with the prior projection is due to lower
 corporate borrowing costs, including the February 2001 issuance of zero coupon
 convertible notes.  The higher 2001 tax rate is principally a result of the
 acquisition of Avis; however, the Company continues to examine ways to reduce
 its 2001 effective tax rate.  Reduced minority interest in 2001 is primarily a
 result of the retirement of the Feline PRIDES in February 2001.  The increase
 in projected weighted average shares outstanding in 2001 compared with 2000 is
 primarily the result of the issuance of 61 million shares of common stock in
 connection with the retirement of Feline PRIDES and the issuance of 46 million
 shares in February 2001. The increased projected capital spending and
 depreciation and amortization in 2001 is primarily related to the acquisitions
 of Avis and Fairfield, as well as Holiday Cottages and RCI Southern Africa.
 
     First Quarter Balance Sheet
     * As of March 31, 2001, we had approximately $2.2 billion of cash and cash
       equivalents and $4.7 billion of debt and minority interest. In
       February 2001, we issued zero coupon convertible senior notes for gross
       proceeds of $900 million.
     * As of March 31, 2001 the net debt to total capital ratio was 32%.  The
       ratio of Adjusted EBITDA, excluding move.com/Homestore.com, to net
       interest expense was 7.1 in first quarter 2001.
     * In first quarter 2001 we paid $250 million to a settlement trust,
       reducing the net outstanding obligation associated with the principal
       class action litigation settlement at March 31, 2001 to $2.25 billion.
     * Common shares outstanding increased in first quarter 2001 primarily from
       the issuance of 61 million shares in connection with the retirement of
       $1.7 billion of Feline PRIDES and the sale of 46 million shares in
       February 2001.
 
     First Quarter EPS Items
     Reported EPS for CD common stock includes Cendant Group operations and a
 retained interest in Move.com Group. (See Table 2 for calculation of
 earnings.) Reported EPS from continuing operations for Cendant Group was
 $0.28 in first quarter 2001 and $0.15 in first quarter 2000. The following are
 the significant items reflected in reported results from continuing operations
 that are considered to be of an unusual or non-recurring nature for purposes
 of deriving Adjusted EBITDA and Adjusted EPS:
 
     First Quarter 2001
     * A net gain of $435 million ($261 million after tax) on the disposition
       of businesses, primarily related to the sale of move.com.  Cendant
       Group's retained interest in the move.com after tax gain was
       $234 million or $0.28 per share.
     * A charge totaling $95 million ($62 million or $0.07 per share after tax)
       to fund a contribution to an independent technology trust responsible
       for providing technology initiatives for the benefit of current and
       future franchisees at Century 21, Coldwell Banker and ERA.
     * A charge totaling $85 million ($56 million or $0.07 per share after tax)
       incurred in conjunction with the development and launch of an Internet
       travel portal.  The Company's financial contribution to the independent
       entity developing the portal, which is required to be expensed
       immediately, is expected to provide attractive financial returns to
       Cendant and its franchisees with limited risk and to significantly
       expand the Internet presence of the Company's travel brands.
     * A net loss of $18 million after tax or $0.02 per share related to
       Cendant's proportionate ownership in Homestore.com.
     * A charge of $11 million ($7 million or $0.01 per share after tax) for
       litigation settlement and investigation costs, net of a credit for
       distributed Feline PRIDES Rights that expired unexercised.
     * Merger related charges totaling $8 million ($5 million or $0.01 per
       share after tax) related to the acquisition and integration of Avis.
     * A charge of $7 million ($5 million or $0.01 per share after tax) related
       to a special contribution made to a newly formed Cendant Charitable
       Foundation.
 
     First quarter 2000
     * A net credit of $38 million ($25 million or $0.03 per share after tax)
       for disallowed claims in connection with the Feline PRIDES class action
       litigation, net of investigation related costs.
     * Restructuring and other unusual charges totaling $86 million
       ($56 million or $0.07 per share after tax).
     * Charges totaling $13 million ($9 million or $0.01 per share after tax)
       for losses on the disposition of businesses.
 
     Investor Conference Call
     Cendant will host a conference call to discuss first quarter results on
 Thursday, April 19, 2001 at 1:00 p.m. Eastern Time.  Investors may access this
 call live at http://www.Cendant.com or dial in to 913-981-5571.  A web replay
 will be available beginning at 4:00 p.m. Eastern Time on April 19, 2001 at
 http://www.Cendant.com.  A telephone replay will be available from 4:00 p.m.
 Eastern Time on April 19, 2001 until 8:00 p.m. on April 23 at 719-457-0820,
 access code: 461306.
 
     Statements about future results made in this release constitute
 forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995. These statements are based on current
 expectations and the current economic environment. 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 are specified in the Company's Form 10-K for the year ended
 December 31, 2000.
     Such forward-looking statements include projections.  Such projections
 were not prepared in accordance with published guidelines of the American
 Institute of Certified Public Accountants or the SEC regarding projections and
 forecasts, nor have such projections been audited, examined or otherwise
 reviewed by independent auditors of Cendant or its affiliates.  In addition,
 such projections are based upon many estimates and are inherently subject to
 significant economic and competitive uncertainties and contingencies, many of
 which are beyond the control of management of Cendant and its affiliates.
 Certain of such uncertainties and contingencies are specified in Cendant's
 Form 10-K for the year ended December 31, 2000.  Accordingly, actual results
 may be materially higher or lower than those projected.  The inclusion of such
 projections herein should not be regarded as a representation by Cendant or
 its affiliates that the projections will prove to be correct.
 
     Cendant Corporation is a diversified global provider of business and
 consumer services primarily within the real estate and travel sectors. The
 Company's fee-for-service businesses include hotel, real estate and tax
 preparation franchising; rental cars, fleet leasing and fuel cards; mortgage
 origination and employee relocation; customer loyalty programs; vacation
 exchange and rental services and vacation interval sales.  Other business
 units include the UK's largest private car park operator and electronic
 reservations processing for the travel industry.  With headquarters in New
 York City, the Company has approximately 60,000 employees and operates in over
 100 countries.
     More information about Cendant, its companies, brands and current SEC
 filings may be obtained by visiting the Company's Web site at
 http://www.Cendant.com or by calling 877-4INFO-CD (877-446-3623).
 
     Table 1
                        Cendant Corporation and Subsidiaries
                         CONSOLIDATED STATEMENTS OF INCOME
                        (In millions, except per share data)
 
 
                                                         Three Months Ended
                                                               March 31,
                                                        2001              2000
     Revenues
       Service fees, net                                $893              $812
       Vehicle-related                                   398                70
       Other                                              12                63
     Net revenues                                      1,303               945
 
     Expenses
       Operating                                         433               338
       Marketing and reservation                         158               140
       Vehicle depreciation, lease charges
        and interest, net *                              181                --
       General and administrative                        135               107
       Non-vehicle depreciation and
        amortization                                      95                81
       Other charges (credits):
         Restructuring and other unusual
          charges                                        186                86
         Merger-related costs                              8                --
         Litigation settlement and related
          costs                                           11               (38)
       Non-vehicle interest, net                          57                25
     Total expenses                                    1,264               739
 
     Net gain (loss) on dispositions of
      businesses                                         435               (13)
 
     Income before income taxes, minority
      interest and equity in Homestore.com               474               193
     Provision for income taxes                          189                66
     Minority interest, net of tax                        13                16
     Equity in Homestore.com, net of tax                  18                --
     Income from continuing operations                   254               111
     Discontinued operations:
       Income from discontinued
        operations, net of tax                            --                16
       Gain on disposal of discontinued
        operations, net of tax                            23                --
     Income before extraordinary loss and
      cumulative effect of accounting change             277               127
     Extraordinary loss, net of tax                       --                (2)
     Income before cumulative effect of
      accounting change                                  277               125
     Cumulative effect of accounting
      change, net of tax                                 (38)              (56)
     Net income                                         $239               $69
 
     CD common stock income per share
       Basic
         Income from continuing operations             $0.29             $0.15
         Net income                                    $0.28             $0.10
 
       Diluted
         Income from continuing operations             $0.28             $0.15
         Net income                                    $0.26             $0.09
 
       Weighted average shares
         Basic                                           790               717
         Diluted                                         830               751
 
     Move.com common stock income per share
       Basic
         Income from continuing operations            $10.41
         Net income                                   $10.34
 
       Diluted
         Income from continuing operations            $10.13
         Net income                                   $10.07
 
       Weighted average shares
         Basic                                             2
         Diluted                                           3
 
     * Includes interest charges of $39 million for the three months ended
       March 31, 2001.
 
     Table 2
                      Cendant Corporation and Subsidiaries
     Supplemental Income (Loss) Per Share Data - Calculation of Earnings by
                             Class of Common Stock
                      (In millions, except per share data)
 
                                                      Three Months Ended
                                                         March 31, 2001
                                                      As                As
                                                   Reported          Adjusted
 
     CD common stock income per share
     Income from continuing operations:
       Income from continuing operations, including
        Cendant Group's retained interest
        in Move.com Group                             $233              $146
       Convertible debt interest, net of tax             3                 3
       Adjustment to Cendant Group's retained interest
        in Move.com Group (A)                           (6)               --
       Income from continuing operations
        - Diluted                                     $230              $149
 
     Net income:
       Net income, including Cendant Group's
        retained interest in Move.com Group           $218              $146
       Convertible debt interest, net of tax             3                 3
       Adjustment to Cendant Group's retained
        interest in Move.com Group (A)                  (6)               --
       Net income - Diluted                           $215              $149
 
     Weighted average shares outstanding:
       Basic                                           790               790
       Diluted                                         830               830
 
     Income per share:
       Basic
         Income from continuing operations           $0.29             $0.18 *
         Net income                                   0.28              0.18 *
 
       Diluted
         Income from continuing operations           $0.28             $0.18 *
         Net income                                   0.26              0.18 *
 
     Move.com common stock income (loss) per share
     Income (loss) from continuing operations (B):
       Income (loss) from continuing operations,
        excluding Cendant Group's retained
        interest in Move.com Group                     $21               $(1)
       Adjustment to Cendant Group's retained
        interest in Move.com Group (A)                   6                --
       Income from continuing operations - Diluted     $27               $(1)
 
     Net income (loss) (C):
       Net income (loss), excluding Cendant
        Group's retained interestin Move.com Group     $21               $(1)
       Adjustment to Cendant Group's retained
        interest in Move.com Group (A)                   6                --
       Net income - Diluted                            $27               $(1)
 
     Weighted average shares outstanding (D):
       Basic                                             2                 2
       Diluted                                           3                 3
 
     Income (loss) per share:
       Basic
         Income (loss) from continuing operations   $10.41            $(0.26)
         Net income (loss)                           10.34             (0.26)
 
       Diluted
         Income (loss) from continuing
          operations                                $10.13            $(0.25)
         Net income (loss)                           10.07             (0.25)
 
     *    Includes Cendant Group's retained interest in the adjusted results of
          operations of Move.com Group.
     (A)  Amount represents the differential between Cendant Group's retained
          interest in Move.com Group for its basic and diluted income (loss)
          per share calculations.
     (B)  In thousands, the As Reported and As Adjusted basic income (loss)
          from continuing operations attributable to Move.com common stock was
          $20,983 and ($525), respectively, and the As Reported and As Adjusted
          diluted income (loss) from continuing operations attributable to
          Move.com common stock was $27,086 and ($678), respectively.
     (C)  In thousands, the As Reported and As Adjusted basic net income (loss)
          attributable to Move.com common stock was $20,847 and ($525),
          respectively, and the As Reported and As Adjusted diluted net income
          (loss) attributable to Move.com common stock was $26,911 and ($678),
          respectively.
     (D)  In thousands, the As Reported and As Adjusted basic and diluted
          weighted average shares outstanding were 2,016 and 2,673,
          respectively.
 
     Table 3
                      Cendant Corporation and Subsidiaries
                   Revenues and Adjusted EBITDA by Segment *
                             (Dollars in millions)
 
                                        Three Months Ended March 31,
 
                                    Revenues          Adjusted EBITDA (A)
                                              %                           %
                                 2001  2000 Change    2001     2000 (B)  Change
     Real Estate Services        $339  $289   17%     $132 (C)  $114      16%
     Hospitality                  264   242    9%      104       91 (F)   14%
     Vehicle Services             454   137  231%       93 (D)   72       29%
     Financial Services           203   194    5%       84       82        2%
     Total Reportable Segments  1,260   862            413      359
     Corporate and Other           43    83     **     (17)(E)    1 (G)    **
     Total Company             $1,303  $945           $396     $360
 
     *   In connection with significant acquisitions and dispositions of
         businesses completed in 2001, the Company realigned the operations and
         management of certain of its businesses.  Accordingly, the Company's
         segment reporting structure now encompasses the following four
         reportable segments:  Real Estate Services, Hospitality, Vehicle
         Services and Financial Services.
 
     **  Not meaningful.
     (A) Defined as earnings before non-operating interest, income taxes,
         depreciation and amortization, minority interest and equity in
         Homestore.com, adjusted to exclude certain items which are of a
         non-recurring or unusual nature and not measured in assessing segment
         performance or are not segment specific.
     (B) Excludes a charge of $86 million in connection with restructuring and
         other initiatives  ($63 million, $11 million and $2 million of
         charges were recorded within the Real Estate Services, Hospitality
         and Financial Services segments, respectively.  Charges of
         $10 million were recorded within businesses not classified by the
         Company as reportable operating segments).
     (C) Excludes a charge of $95 million to fund an irrevocable contribution
         to an independent technology trust responsible for providing
         technology initiatives for the benefit of current and future
         franchisees at Century 21, Coldwell Banker and ERA.
     (D) Excludes a charge of $4 million related to the acquisition and
         integration of Avis Group Holdings, Inc. ("Avis") and includes
         $5 million of interest expense related to debt used in the acquisition
         of Avis.
     (E) Excludes (i) a net gain of $435 million related to the dispositions
         of businesses and (ii) a credit of $14 million to reflect an
         adjustment to the settlement charge recorded in the fourth quarter of
         1998 for the PRIDES class action litigation primarily related to
         Rights that expired unexercised.  Such amounts were partially offset
         by charges of (i) $85 million incurred in connection with the
         creation of Travel Portal, Inc., a company that was created to pursue
         the development of an online travel business, (ii) $25 million for
         investigation-related costs, (iii) $7 million related to a
         contribution to the Cendant Charitable Foundation and (iv) $4 million
         related to the acquisition and integration of Avis.
     (F) Excludes $4 million of losses related to the dispositions of
         businesses.
     (G) Excludes a non-cash credit of $41 million in connection with a change
         to the original estimate of the number of Rights to be issued in
         connection with the PRIDES settlement resulting from unclaimed and
         uncontested Rights.  Such credit was partially offset by (i) $9
         million of losses related to the dispositions of businesses and (ii)
         $3 million of investigation-related costs.
 
     Table 4
                      Cendant Corporation and Subsidiaries
                 2000 Revenues and Adjusted EBITDA by Segment *
                             (Dollars in millions)
 
                                             Year Ended December 31, 2000
 
                                                       Revenues
                                            1st   2nd     3rd  4th     Full
                                            Qtr   Qtr     Qtr  Qtr     Year
     Real Estate Services                  $289  $377    $419  $376  $1,461
     Hospitality                            242   257     278   236   1,013
     Vehicle Services                       137   135     146   150     568
     Financial Services                     194   153     148   143     638
     Total Reportable Segments              862   922     991   905   3,680
     Corporate and Other                     83    51      53    63     250
     Total Company                         $945  $973  $1,044  $968  $3,930
 
                      Cendant Corporation and Subsidiaries
                 2000 Revenues and Adjusted EBITDA by Segment *
                             (Dollars in millions)
 
                                                Year Ended December 31, 2000
 
                                                      Adjusted EBITDA(A)
                                             1st    2nd    3rd    4th     Full
                                             Qtr    Qtr    Qtr    Qtr     Year
     Real Estate Services                   $114   $193   $242   $203     $752
     Hospitality                              91    103    115     85      394
     Vehicle Services                         72     67     81     86      306
     Financial Services                       82     42     42     34      200
     Total Reportable Segments               359    405    480    408    1,652
     Corporate and Other                       1    (45)   (36)   (29)    (109)
     Total Company                          $360   $360   $444   $379   $1,543
 
     (A) In connection with significant acquisitions and dispositions of
         businesses completed during 2001, the Company realigned the
         operations and management of certain of its businesses.
         Accordingly, the Company's segment reporting structure now
         encompasses the following four reportable segments:  Real Estate
         Services, Hospitality, Vehicle Services and Financial Services.
         Amounts are presented herein as if the 2001 segment reporting
         structure was applicable to 2000.
 
     Table 5
                      Cendant Corporation and Subsidiaries
                        Segment Revenue Driver Analysis
                         (Revenue dollars in thousands)
 
                                                  Three Months Ended March 31,
                                                 2001          2000    % Change
     REAL ESTATE SERVICES SEGMENT
 
       Real Estate
         Closed Sides - Domestic (000's )       359,561       372,403      (3%)
         Average Price                         $171,865      $162,908       5%
         Royalty and Marketing Revenue         $103,370      $103,843       --
         Total Revenue                         $117,849      $120,744      (2%)
 
       Relocation
         Service Based Revenue (Referrals,
           Outsourcing, etc.)                   $61,174       $53,606      14%
         Asset Based Revenue (Corporate
          and Government Home Sale Closings
          and Financial Income)                 $41,916       $37,626      11%
          Total Revenue                        $103,090       $91,232      13%
 
       Mortgage
         Production Loans Sold (millions)        $5,916        $3,713      59%
         Production Revenue                     $87,153       $53,279      64%
         Average Servicing Loan Portfolio
          (millions)                            $83,275       $51,955      56%
         Servicing Revenue                      $31,403       $23,444      34%
         Total Revenue                         $118,823       $76,903      55%
 
     HOSPITALITY SEGMENT
 
       Lodging
         RevPar ($)                              $24.17        $24.12       --
         Weighted Average Rooms Available       508,685       501,160       2%
         Royalty, Marketing and
         Reservation Revenue                    $84,484       $83,494       1%
         Total Revenue                         $106,809      $105,643       1%
 
       RCI
         Average Subscriptions                2,562,682     2,336,574      10%
         Number of Timeshare Exchanges          506,590       468,692       8%
         Total Revenue                         $127,005      $115,516      10%
 
     VEHICLE SERVICES SEGMENT (A)
 
       Car Rental
         Rental Days (000's)                      5,395           n/a      n/a
         Time and Mileage Revenue per Day        $39.36           n/a      n/a
         Total Revenue                         $251,028           n/a      n/a
 
       Fleet
         Average Fleet (Leased)                 311,907           n/a      n/a
         Average Number of Cards (000's)          3,554           n/a      n/a
         Total Revenue                         $128,377           n/a      n/a
 
     FINANCIAL SERVICES SEGMENT
 
         Insurance/Wholesale-related
          Revenue                              $143,313      $144,551      (1%)
         Other Revenue                          $59,959       $49,538      21%
         Total Revenue                         $203,272      $194,089       5%
 
       (A)  On March 1, 2001 the Company acquired the remaining shares of Avis
            that were not owned by the Company.
 
     Table 6
                      Cendant Corporation and Subsidiaries
                      2000 Segment Revenue Driver Analysis
                         (Revenue dollars in thousands)
 
                                                 Three Months Ended
                                     March 31,  June 30,   Sept. 30,  Dec. 31,
                                       2000       2000       2000       2000
     REAL ESTATE SERVICES SEGMENT
 
       Real Estate
         Closed Sides - Domestic
          (000's)                     372,403    503,921    518,652    465,072
         Average Price               $162,908   $172,594   $171,856   $172,061
         Royalty and Marketing
          Revenue                    $103,843   $144,092   $145,838   $129,682
         Total Revenue               $120,744   $165,683   $161,945   $144,306
 
       Relocation
         Service Based Revenue
          (Referrals, Outsourcing,
          etc.)                       $53,606    $66,803    $77,085    $70,046
         Asset Based Revenue
          (Corporate and
          Government Home Sale
          Closings and Financial
          Income)                     $37,626    $47,631    $49,583    $45,756
         Total Revenue                $91,232   $114,434   $126,668   $115,802
 
       Mortgage
         Production Loans Sold
          (millions)                   $3,713     $4,746     $6,754     $5,883
         Production Revenue           $53,279    $73,714   $107,798    $78,014
         Average Servicing Loan
          Portfolio (millions)        $51,955    $58,264    $64,298    $69,052
         Servicing Revenue            $23,444    $23,347    $24,355    $38,558
         Total Revenue                $76,903    $97,241   $132,330   $116,749
 
     HOSPITALITY SEGMENT
 
       Lodging
         RevPar ($)                    $24.12     $30.33     $35.17     $25.33
         Weighted Average Rooms
          Available                   501,160    501,929    504,648    506,240
         Royalty, Marketing and
          Reservation Revenue         $83,494   $106,397   $123,738    $89,240
         Total Revenue               $105,643   $129,899   $147,113   $110,659
 
       RCI
         Average Subscriptions      2,336,574  2,341,576  2,362,479  2,377,862
         Number of Timeshare
          Exchanges                   468,692    360,968    386,451    355,537
         Total Revenue               $115,516   $103,311   $107,697   $106,410
 
     FINANCIAL SERVICES SEGMENT
 
         Insurance/Wholesale-
          related Revenue            $144,551   $145,386   $144,921   $139,609
         Other Revenue                $49,538     $7,335     $3,040     $3,141
         Total Revenue               $194,089   $152,721   $147,961   $142,750
 
     Table 7
                      Cendant Corporation and Subsidiaries
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                                 (In billions)
 
                                                     March 31,     December 31,
                                                       2001              2000
     Assets
     Current assets
        Cash and cash equivalents                      $2.2              $1.0
        Other current assets                            2.4               1.4
     Total current assets                               4.6               2.4
 
     Property and equipment, net                        1.4               1.3
     Goodwill, net                                      4.8               3.0
     Other assets*                                      6.0               4.9
     Total assets exclusive of assets
      under programs                                   16.8              11.6
 
     Assets under management and mortgage programs     10.2               2.9
     Total assets                                     $27.0             $14.5
 
     Liabilities and stockholders' equity
     Current liabilities
       Current liabilities                             $2.7              $1.6
       Net liabilities of
        discontinued operations                         0.4               0.3
     Total current liabilities                          3.1               1.9
 
     Long-term debt                                     4.2               1.9
     Stockholder litigation settlement                  2.9               2.9
     Other noncurrent liabilities                       0.6               0.5
     Total liabilities exclusive of
      liabilities under programs                       10.8               7.2
 
     Liabilities under management and
      mortgage programs                                10.5               2.5
     Mandatorily redeemable preferred
      securities issued by subsidiaries                 0.4               2.1
     Total stockholders' equity                         5.3               2.7
     Total liabilities and stockholders' equity       $27.0             $14.5
 
     *  Includes stockholder litigation settlement trust of $607 million.
 
 SOURCE  Cendant Corporation