Interim Management Statement

17^th May 2011

Avis Europe plc, a leading car rental company in Europe, Africa, the Middle East and Asia, publishes its Interim Management Statement for the period from 1^st January 2011 to date.

We are pleased to report that trading in this period is in line with our expectations, supported by the overall economic recovery and benefitting from the substantial transformation undertaken in the business over the last three years.

The encouraging improvement in volumes seen in the second half of last year has been sustained, with billed days ahead of the comparative in nearly all markets. Moreover, as part of our strategy to better use our capacity in the off-peak periods, we have particularly grown volumes in Corporate and Insurance/Replacement customer groups. These are proportionately more important in these periods and have therefore driven further increases in both utilisation and staff productivity. Taking into account the late timing of Easter this year, the Individual customer group also performed well across March and April. From a geographic perspective, we continue to successfully strengthen our market position in the UK and have achieved strong growth in Germany with some early recovery being seen in Spain.

As a consequence of the mix effects from the above, reported rental revenue per day has been lower than the prior year. The comparative had also benefited from significant additional fees on one-way rentals during the Icelandic volcanic ash cloud period.

Both our Avis and Budget licensee businesses continue to grow, fully absorbing relatively small impacts from recent events in North Africa and the Middle East.

Rental income for the four months to the end of April was therefore 5.2 % ahead of prior year.

We are also maintaining very tight control over all costs, including embedding the restructuring of last year and with further organisational actions being undertaken in the period, particularly in Spain (with any one-time costs being absorbed within underlying operating profit).

We have closely monitored any potential consequences to our fleet supply of disruptions to car production following the recent tsunami in Japan. In close coordination with the car manufacturers we have undertaken preventative measures to ensure that we maintain our flexibility in relation to supply. Therefore, we do not expect any impact to our key summer trading period.

As expected, the interest charge has benefited from lower effective rates, capital control and the full year effect of the rights issue proceeds.

Outlook

At this stage, our expectations for the full year remain unchanged and we continue to expect good progress for the year and a further increase in our underlying pre-tax margin. Positive volume trends across our main markets are expected to continue, with mix effects reducing reported rental revenue per day. Fleet costs are expected to be broadly flat versus the prior year and other cost lines will continue to be robustly managed. There has been no material change to our expectations for our year-end net debt position as we continue to maintain our close focus on capital employed.

Looking beyond the year, the actions we have now taken to transform the Group, together with the strength of our two global brands, have strongly positioned us to take advantage of the expected continued recovery in our markets. We are also executing on our clear strategy for accelerating growth in China and developing new mobility solutions, including the roll-out through France of Avis on Demand, our flexible and convenient, remote access, hourly rental product for members - which has received very good customer feedback. We therefore believe the prospects for the Group remain highly positive.

Other information:

The statement is available from today on the Group’s corporate website www.avis-europe.com.

The Interim Results for the six months ended 30 June 2011 will be published on 25^th August 2011.

Enquiries:

MHP
Andrew Jaques, Barnaby Fry, Simon Hockridge 020 7357 9477

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