Avis Europe : AGM Trading Statement

Avis Europe plc, a leading car rental company in Europe, Africa, the Middle East and Asia, gives the following trading update.

At Avis Europe's AGM at 10am today, Alun Cathcart, Chairman, will comment:

"Volume growth in the year to date has further improved from the positive trend experienced last year. Overall billed days were ahead both of last year and our expectations, in particular due to longer rental length.

Reported rate per day was lower, largely due to the anticipated mix effects of growing the insurance/leasing segments in the UK and Germany, the increase in rental length and continuing competitive conditions in the market place.

Our revenue management actions, however, improved yield in the month of April, including the key Easter trading period, and we are planning similar actions over the summer months.

The overhead re-structuring programme and associated cost savings remain on track. Fleet cost increases are as expected, although changes in legislation in certain countries are creating challenges.

We continue to review our network. In addition to the recently announced sale and franchising of Avis Greece, we have this month completed the franchising of our business in the Canaries. Although the Canaries transaction will lower reported profits in the current year by around €2 million, it is expected to enhance them going forward, with the proceeds enabling us to redeploy further capital into targeted areas of our business.

Adjusting for the sale and franchising of Avis Greece, assuming completion, and the franchising of the Canaries, our expectations for the underlying full year outcome for our continuing business are overall unchanged."

Enquiries:

Murray Hennessy, Chief Executive 01344 426644

Martyn Smith, Group Finance Director 01344 426644

Hilary White, Investor Relations 01344 426644

Chris Blundell / Paul Scott, Brunswick 020 7404 5959