2007 Interim Results for Six Months Ended June 2007

Avis Europe plc, a leading car rental company in Europe, Africa, the Middle East and Asia,

announces interim results for the six months ended 30 June 2007.

Operating Highlights

Continuing good volume growth
Pricing is on an improving trend, although remaining below the prior period
Higher fleet costs, mitigated by improved utilisation
Continued benefits from restructuring programme
Further strong result from the Avis licensee network
Continuation of Budget turnaround
Network optimisation with developments in Greece, Spain and Germany
New website roll-out; internet reservations improved to 31% of reservations

Financial Highlights

Revenue excluding discontinued operation up 4.7% to €604 million
Underlying¹ loss before tax excluding discontinued operation of €1.9 million (2006: €4.5 million loss)
Net exceptional pre-tax charge excluding discontinued operation of €7.6 million primarily goodwill write-off
Total loss before tax excluding discontinued operation of €7.9 million (2006: €13.2 million loss)
Total loss after tax of €12.8 million (2006: €8.6 million loss)
Total loss per share of 1.4 euro cents (2006: 0.9 euro cents loss)
Overall expectations for full year 2007 remain unchanged

^{1
Underlying (see Basis of Preparation) excludes exceptional charges
of €7.6 million, certain net re-measurement gains of €2.8
million and economic hedging losses of €1.2 million.
Underlying is not a defined term under IFRS, and is not intended to
be a substitute for, or superior to, IFRS measures of
profit.}

Murray Hennessy, Group Chief Executive, said:

"First half trading saw further good volume growth and utilisation improvements, higher licensee fee income, and the continued Budget turnaround. However, overall pricing was lower, but with some improvement since Easter, partially driven by revenue management actions. In addition, cost pressures continued, particularly relating to fleet and interest costs.

In line with our strategy to improve margins and returns, recent actions to optimise the structure of the Group's network include the disposal and licensing of operations in Greece, the licensing of the operation in the Canary Islands and the acquisition of a strategically important licensee in Germany. The net capital released from these transactions, which in aggregate amounts to approximately €200 million, will be progressively re-deployed into higher return areas of the business.

In July and August to date, part of the key summer trading period, revenues remained strong as planned, with both good volume and continued improving pricing trends. The Group's expectations for the underlying result for the full year outcome remain 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

View the full interim results (PDF, 135KB). To view this document you will need version 5 or above of Adobe Acrobat Reader, available free of charge from the Adobe website.

Avis Europe plc, Incorporated and registered in England and Wales.
Registered Office: Avis House, Park Road, Bracknell, Berkshire, RG12 2EW.
Registered Number: 3311438.