Interim results for six months ended 30 June 2006

Avis Europe plc, the leading car rental company in Europe, Africa, the Middle East and Asia, announces interim results for the six months ended 30 June 2006 and provides an update on the implementation of its margin improvement strategy.

Operating Highlights

• Good first half volume growth; utilisation improvement mitigating continuing competitive pricing
• Lower operating profit mainly on anticipated higher fleet cost
• Benefits from the overhead restructuring programme ahead of expectations; onetime costs lower
• Selective re-investment of savings in revenue management and web development initiatives
• Overall expectations for 2006 remain broadly unchanged

• Revenue up 5.5% to €614 million
• Underlying* loss before tax €3.2 million (2005: profit of €3.2 million)
• Exceptional charges of €13.6 million
• Total loss before tax €11.9 million (2005: €4.6 million)
• Underlying* loss per share 0.3 euro cents (2005: earnings per share 0.3 euro cents)
• Total loss per share 0.9 euro cents (2005: loss per share 0.5 euro cents)

* Underlying (see basis of preparation) excludes exceptional charges of €13.6 million, certain remeasurement gains of €3.6 million and economic hedging gains of €1.3 million.

Commenting on the results, Murray Hennessy, Group Chief Executive, said:

"We have delivered good volume growth in the first half, and although the pricing environment remains challenging, we have achieved another good utilisation performance. The lower operating profit was as expected and driven mainly by anticipated higher fleet costs.

Performance in the second half should improve with continued positive volume trends and the further benefits of our recovery strategy taking effect. The effect of the overhead restructuring programme will be higher than expected in the full year. However, we are choosing to invest in web development and revenue management, which are both key to our margin improvement strategy. The effect of the recent security alerts and consequent travel disruption has not been material to date, although it is too early to assess any medium term impact on travel patterns and how such changes may affect the car rental industry.

Our outlook for the full year remains broadly unchanged."

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