SOURCE: The Hertz Corporation

The Hertz Corporation

October 29, 2009 16:31 ET

Hertz Reports Improved Third Quarter Profits

PARK RIDGE, NJ--(Marketwire - October 29, 2009) - Hertz Global Holdings, Inc. (NYSE: HTZ)

--  Adjusted pre-tax income(1) for the quarter increased 15.5% over the
    prior year, to $195.3 million, on 15.7% lower revenues; GAAP pre-tax income
    increased 189% to $75.8 million.
--  Adjusted pre-tax margin of 9.6%, 260 bps better than last year, GAAP
    pre-tax income margin of 3.7% for the quarter, also a 260 bps improvement.
--  Worldwide car rental adjusted pre-tax income of $258.3 million for the
    quarter, a 54.6% increase year-over-year on 11.5% lower revenues, and a
    margin of 14.7%, 630 bps better than last year.
--  Corporate EBITDA(1) of $388.1 million for the quarter, or a margin of
    19.0%, 300 bps better than last year.
--  Worldwide equipment rental Corporate EBITDA margin of 41.9%.
    

Hertz Global Holdings, Inc. (NYSE: HTZ) (with its subsidiaries, the "Company" or "we") reported third quarter 2009 worldwide revenues of $2.0 billion, a decrease of 15.7% year-over-year (a 13.4% decrease in constant currency). Worldwide car rental revenues for the quarter decreased 11.5% (an 8.9% decrease in constant currency) to $1.8 billion. Revenues from worldwide equipment rental for the third quarter were $280.5 million, down 35.2% (a 33.9% decrease in constant currency) over the prior year period.

Third quarter 2009 adjusted pre-tax income was $195.3 million, an improvement of 15.5%, versus $169.1 million in the same period in 2008, and income before income taxes ("pre-tax income"), on a GAAP basis, was $75.8 million, an increase of 189%, versus $26.2 million in the third quarter of 2008. Corporate EBITDA for the third quarter of 2009 was $388.1 million, an increase of 0.4% from the same period in 2008.

Third quarter 2009 adjusted net income(1) was $124.5 million, an increase of 17.5%, versus $106.0 million in the same period of 2008, resulting in adjusted diluted earnings per share for the quarter of $0.31, compared with $0.33 for the third quarter of 2008. Third quarter 2009 net income, on a GAAP basis, was $64.5 million or $0.15 per share on a diluted basis, compared with $17.7 million, or $0.05 per share on a diluted basis, for the third quarter of 2008.

Mark P. Frissora, the Company's Chairman and Chief Executive Officer, said, "Our strong earnings performance in the third quarter reflects sustained progress on expense management and incremental revenue-generating initiatives which are offsetting soft, but improving, business travel demand and stabilizing equipment rental volume. As the global economy recovers, we expect our balanced approach to revenue growth, costs and cash management will result in continued improvement in key financial metrics. Additionally, with the recent completion of two Capital Market transactions totaling $3.3 billion, Hertz has achieved its U.S. fleet refinancing targets on favorable terms a year ahead of schedule."

The Company took $47.1 million in restructuring and related charges in the third quarter of 2009, primarily attributable to costs associated with job reductions, the closure of rental locations and process reengineering. The Company said it expects restructuring and related charges to diminish significantly starting in the fourth quarter of 2009 and throughout 2010.

INCOME MEASUREMENTS, THIRD QUARTER 2009 & 2008

                               Q3 2009                    Q3 2008
                      -------------------------- -------------------------
                                        Diluted                    Diluted
                                        Earnings                   Earnings
(in millions, except  Pre-tax   Net       Per    Pre-tax   Net        Per
 per share amounts)    Income  Income    Share   Income   Income     Share
                      -------- -------  -------- -------  -------  --------
Earnings Measures, as
 reported  (EPS
 based on 425.2M and
 322.9M diluted
 shares)              $   75.8 $  64.5  $   0.15 $  26.2  $  17.7  $   0.05
                               =======  ========          =======  ========
Adjustments:
  Purchase accounting     21.7                      25.2
  Non-cash debt
   charges                48.5                      20.2
  Restructuring and
   related charges        47.1                      85.0
  Derivative losses        1.9                      15.0
  Vacation accrual
   adjustment                -                      (2.5)
  Other                    0.3                         -
                      --------                   -------
Adjusted pre-tax
 income                  195.3   195.3             169.1    169.1
Assumed  provision
 for income taxes at
 34%                             (66.4)                     (57.5)
Noncontrolling
 interest                         (4.4)                      (5.6)
                      -------- -------           -------  -------
Earnings Measures, as
 adjusted (EPS based
 on 407.7M and 325.5M
 diluted shares)      $  195.3 $ 124.5  $   0.31 $ 169.1  $ 106.0  $   0.33
                      ======== =======  ======== =======  =======  ========

The Company ended the third quarter of 2009 with total debt of $10.3 billion and net corporate debt(1) of $3.6 billion, compared with total debt of $9.8 billion and net corporate debt of $4.0 billion as of June 30, 2009, a decrease in net corporate debt of $369.1 million. The decrease in net corporate debt is primarily attributable to an increase in cash. Total net cash flow(1) for the quarter was $70.8 million compared with a use of $157.7 million in the third quarter of 2008. The improvement of $228.5 million is primarily attributable to proceeds from a private sale of our common stock to certain of our controlling stockholders in July 2009. Total liquidity(2) was approximately $5.1 billion as of September 30, 2009. On a GAAP basis, net cash provided by operating activities was $608.8 million in the third quarter of 2009, compared to $921.2 million last year.

WORLDWIDE CAR RENTAL

Worldwide car rental revenues were $1.8 billion for the third quarter of 2009, a decrease of 11.5% (an 8.9% decrease in constant currency) from the prior year period. Transaction days for the quarter decreased 5.8% [(4.0)% U.S.; (9.0)% International]. U.S. off-airport revenues for the third quarter decreased 1.0% year-over-year, and transaction days increased 5.2%. Rental rate revenue per transaction day(1) ("RPD") for the quarter was 1.9% below the prior year period [(3.4)% U.S.; 0.8% International]. Additionally, pure pricing increased 0.4% overall, and 2.7% for the U.S. leisure airport market, year-over-year.

Worldwide car rental adjusted pre-tax income for the third quarter of 2009 was $258.3 million, an improvement of 54.6% over the prior year period. The result was driven by strong cost management performance, including higher revenues per vehicle, lower overall fleet costs and staffing/wage levels commensurate with rental volumes. As a result, worldwide car rental achieved an adjusted pre-tax margin, based on revenues, of 14.7% for the quarter, 630bps better than the prior year period.

The worldwide average number of Company-operated cars for the third quarter of 2009 was 445,200, a decrease of 9.3% over the prior year period.

Additionally, the U.S. car rental business made year-over-year progress in the third quarter, due to further productivity and revenue generation improvements, year-over-year. A few key metrics include:

--  Transaction length increased 4.8% over last year, driven primarily by
    leisure and off-airport transactions, including the new multi-month
    rental product.
--  Revenue per transaction, a good measure of pricing and transaction
    length mix, increased 1.2% year-over-year.
--  8.6% lower average U.S. car-rental fleet compared with the third
    quarter of 2008, taking advantage of an improving used car market.
--  Fleet efficiency of 83.3%, a 398 bps improvement year-over-year, and
    monthly depreciation per vehicle of $319.11, an 11.9% decrease.
--  Revenue per vehicle, a good measure of fleet productivity, increased
    1.4% year-over-year.

WORLDWIDE EQUIPMENT RENTAL

Worldwide equipment rental revenues were $280.5 million for the third quarter of 2009, a 35.2% decrease (a 33.9% decrease in constant currency) from the prior year period.

Adjusted pre-tax income for the third quarter of 2009 was $25.2 million, a 68.9% decrease from the prior year period, primarily attributable to the effects of reduced volume and pricing, partially offset by cost management initiatives. HERC achieved an adjusted pre-tax margin, based on revenues, of 9.0%, and a Corporate EBITDA margin, based on revenues, of 41.9% for the quarter.

The average acquisition cost of rental equipment operated during the third quarter of 2009 decreased by 16.9% year-over-year -- compared with a 0.4% increase in the third quarter of 2008 over the third quarter of 2007 -- to $2.8 billion, and net revenue earning equipment as of September 30, 2009 was $1.9 billion, a 13.6% decrease from the amount as of December 31, 2008.

OUTLOOK

On October 27, 2009, the Company announced it had increased full year 2009 earnings guidance for annualized cost savings, revenues, Corporate EBITDA, adjusted pre-tax income and adjusted diluted earnings per share as follows:

                                                Revised
                                               Guidance     Prior Guidance
                                            --------------- ---------------
Annualized Cost Savings                     $        620.0M $        570.0M
Revenue                                     $  7.0 - $ 7.1B $  6.7 - $ 7.0B
Corporate EBITDA(3)                         $  950 - $ 960M $  900 - $ 935M
Adjusted Pre-Tax Income(3)                  $  155 - $ 165M $  100 - $ 120M
Adjusted Diluted Earnings per Share(3)(4)   $ 0.21 - $ 0.23 $ 0.12 - $ 0.15

RESULTS OF THE HERTZ CORPORATION

The Company's operating subsidiary, The Hertz Corporation ("Hertz"), posted the same revenues for the third quarter of 2009 as the Company. Hertz's third quarter of 2009 pre-tax income was, however, $11.3 million higher than that of the Company primarily because of additional interest expense recognized by the Company on its 5.25% Convertible Senior Notes issued in May and June 2009.

(1) Adjusted net income, adjusted diluted earnings per share, adjusted pre-tax income, Corporate EBITDA, net corporate debt, total net cash flow and rental rate revenue per transaction day are non-GAAP measures. See the accompanying Attachments for the reconciliations and definitions for each of these non-GAAP measures and the reason the Company's management believes that these measures provide useful information to investors regarding the Company's financial condition and results of operations.

(2) Total liquidity of $5.1 billion is comprised of $0.9 billion of cash, $1.0 billion of undrawn corporate liquidity and $3.2 billion of fleet financing availability. Total liquidity is subject to borrowing base limitations and other factors--we had $1.7 billion of the borrowing base available at September 30, 2009 and $0.9 billion of cash.

(3) Management believes that Corporate EBITDA, adjusted pre-tax income and adjusted diluted earnings per share are useful in measuring the comparable results of the Company period-over-period. The GAAP measures most directly comparable to Corporate EBITDA, adjusted pre-tax income and adjusted diluted earnings per share are cash flows from operating activities, pre-tax income and diluted earnings per share. Because of the forward-looking nature of the Company's forecasted Corporate EBITDA, adjusted pre-tax income and adjusted diluted earnings per share, specific quantifications of the amounts that would be required to reconcile forecasted cash flows from operating activities, pre-tax income and diluted earnings per share to forecasted Corporate EBITDA, adjusted pre-tax income and adjusted diluted earnings per share are not available. The Company believes that there is a degree of volatility with respect to certain of the Company's GAAP measures, primarily related to fair value accounting for its financial assets (which includes the Company's derivative financial instruments), its income tax reporting and certain adjustments made in order to arrive at the relevant non-GAAP measures, which preclude the Company from providing accurate forecasted GAAP to non-GAAP reconciliations. Based on the above, the Company believes that providing estimates of the amounts that would be required to reconcile the range of the non-GAAP Corporate EBITDA, adjusted pre-tax income and adjusted diluted earnings per share to forecasted cash flows from operating activities, pre-tax income and diluted earnings per share would imply a degree of precision that could be confusing or misleading to investors for the reasons identified above.

(4) Based on 407.7 million shares which represents the number of diluted shares outstanding for the year ended December 31, 2008 plus 85 million shares offered in the common stock offerings.

CONFERENCE CALL INFORMATION

The Company's third quarter 2009 earnings conference call will be held on Friday, October 30, 2009, at 10:00 a.m. (EDT). To access the conference call live, dial 888-428-4479 in the U.S. and 612-332-0107 for international callers using the passcode: 118502 or listen via webcast at www.hertz.com/investorrelations. The conference call will be available for replay for two weeks starting at 12:30 p.m. on October 30, 2009 by calling 800-475-6701 in the U.S. or 320-365-3844 for international callers with the passcode: 118502. The press release and related tables containing the reconciliations of non-GAAP measures will be available on our website, www.hertz.com/investorrelations.

ABOUT THE COMPANY

Hertz is the world's largest general use car rental brand, operating from approximately 8,100 locations in approximately 145 countries worldwide. Hertz is the number one airport car rental brand in the U.S. and at 42 major airports in Europe, operating both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Australia and New Zealand. In addition, the Company has licensee locations in cities and airports in Africa, Asia, and the Middle East. Product and service initiatives such as Hertz #1 Club Gold®, NeverLost® customized, onboard navigation systems, SIRIUS Satellite Radio, and unique cars and SUVs offered through the company's Prestige, Fun and Green Collections, set Hertz apart from the competition. In 2008, the Company launched Connect by Hertz, entering the global car sharing market in London, New York City and Paris. Hertz also operates one of the world's largest equipment rental businesses, Hertz Equipment Rental Corporation, offering a diverse line of equipment, including tools and supplies, as well as new and used equipment for sale, to customers ranging from major industrial companies to local contractors and consumers from approximately 330 branches in the United States, Canada, China, France and Spain.

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on these statements. Forward-looking statements include information concerning the Company's outlook, anticipated revenues, results of operations and implementation of productivity and efficiency initiatives, including targeted job reductions, and the anticipated savings and restructuring charges expected to be realized or incurred in connection therewith. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "should," "forecast" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors that the Company believes are appropriate in these circumstances. As you read this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions. Many factors could affect the Company's actual results and its ability to implement its cost savings and efficiency initiatives successfully, and could cause the Company's actual results to differ materially from those expressed in the forward-looking statements. Some important factors include: the Company's operations; economic performance; financial condition; management forecasts; efficiencies, cost savings and opportunities to increase productivity and profitability; income and margins; liquidity and availability of additional or continued fleet financing including as a result of the financial instability of the entities providing credit support for certain of our notes; the financial instability of the manufacturers of our vehicles; anticipated growth; economies of scale; the economy; future economic performance; the Company's ability to maintain profitability during adverse economic cycles, potential tangible and intangible asset impairment charges and unfavorable external events (including war, terrorist acts, natural disasters and epidemic disease); future acquisitions and dispositions; litigation; potential and contingent liabilities; management's plans; taxes; and refinancing of existing debt. In light of these risks, uncertainties and assumptions, the forward-looking statements contained in this press release might not prove to be accurate and you should not place undue reliance upon them. All forward-looking statements attributable to the Company or persons acting on the Company's behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

The Company cautions you therefore that you should not rely unduly on these forward-looking statements. You should understand the risks and uncertainties discussed in "Risk Factors" and elsewhere in the Company's 2008 Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as filed with the United States Securities and Exchange Commission, or the "SEC," on March 3, 2009, and its Quarterly Report on Form 10-Q for the three months ended June 30, 2009, as filed with the SEC on August 7, 2009, could affect the Company's future results and the outcome of its implementation of its cost savings and efficiency initiatives, and could cause those results or other outcomes to differ materially from those expressed or implied in the Company's forward-looking statements.

Attachments:

Table 1:   Condensed Consolidated Statements of Operations for the Three
           and Nine Months Ended September 30, 2009 and 2008
Table 2:   Condensed Consolidated Statements of Operations As Reported and
           As Adjusted for the Three and Nine Months Ended September 30,
           2009 and 2008
Table 3:   Segment and Other Information for the Three and Nine Months
           Ended September 30, 2009 and 2008
Table 4:   Selected Operating and Financial Data as of or for the Three and
           Nine Months Ended September 30, 2009 compared to September 30,
           2008 and Selected Balance Sheet Data as of September 30, 2009
           and December 31, 2008
Table 5:   Non-GAAP Reconciliations of Adjusted Pre-Tax Income (Loss) and
           Adjusted Net Income (Loss) for the Three and Nine Months Ended
           September 30, 2009 and 2008
Table 6:   Non-GAAP Reconciliations of EBITDA, Corporate EBITDA, Unlevered
           Pre-Tax Cash Flow, Levered After-Tax Cash Flow Before Fleet
           Growth and Levered After-Tax Cash Flow After Fleet Growth for
           the Three and Nine Months Ended September 30, 2009 and 2008
Table 7:   Non-GAAP Reconciliations of Operating Cash Flows to EBITDA for
           the Three and Nine Months Ended September 30, 2009 and 2008, Net
           Corporate Debt, Net Fleet Debt and Total Net Debt as of
           September 30, 2009, 2008 and 2007, June 30, 2009 and 2008 and
           December 31, 2008 and 2007, Car Rental Rate Revenue per
           Transaction Day and Equipment Rental and Rental Related Revenue
           for the Three and Nine Months Ended September 30, 2009 and 2008
Table 8:   Non-GAAP Reconciliations of EBITDA, Corporate EBITDA, Unlevered
           Pre-Tax Cash Flow, Levered After-Tax Cash Flow Before Fleet
           Growth and Levered After-Tax Cash Flow After Fleet Growth for
           the Twelve Months Ended September 30, 2009 and 2008
Table 9:   Non-GAAP Reconciliation of Total Net Cash Flow for the Three,
           Nine and Twelve Months Ended September 30, 2009 and 2008

Exhibit 1: Non-GAAP Measures: Definitions and Use/Importance


                                                                    Table 1
                        HERTZ GLOBAL HOLDINGS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In millions, except per share amounts)
                                Unaudited

                                 Three Months Ended     As a Percentage
                                    September 30,      of Total Revenues
                                --------------------  -------------------
                                   2009       2008      2009       2008
                                ---------  ---------  --------   --------
Total revenues                  $ 2,041.4  $ 2,421.9     100.0 %    100.0 %
                                ---------  ---------  --------   --------

Expenses:
  Direct operating                 1,118.6    1,351.8     54.8 %     55.8 %
  Depreciation of revenue
   earning equipment                 499.1      595.0     24.4 %     24.5 %
  Selling, general and
   administrative                   179.7      234.3       8.8 %      9.7 %
  Interest expense                  169.3      220.1       8.3 %      9.1 %
  Interest and other income, net     (1.1)      (5.5)        - %     (0.2)%
                                ---------  ---------  --------   --------
Total expenses                    1,965.6    2,395.7      96.3 %     98.9 %
                                ---------  ---------  --------   --------
Income before income taxes           75.8       26.2       3.7 %      1.1 %
Provision for taxes on income        (6.9)      (2.9)     (0.3)%     (0.2)%
                                ---------  ---------  --------   --------
Net income                           68.9       23.3       3.4 %      0.9 %
Less: Net income attributable
 to noncontrolling interest          (4.4)      (5.6)     (0.2)%     (0.2)%
                                ---------  ---------  --------   --------
Net income attributable to
 Hertz Global Holdings, Inc.
 and Subsidiaries' common
 stockholders                   $    64.5  $    17.7       3.2 %      0.7 %
                                =========  =========  ========   ========

Weighted average number of
 shares outstanding:
     Basic                          407.4      322.9
     Diluted                        425.2      322.9




Earnings per share attributable
 to Hertz Global Holdings, Inc.
 and Subsidiaries' common
 stockholders:
     Basic                      $    0.16  $    0.05
     Diluted                    $    0.15  $    0.05




                                  Nine Months Ended     As a Percentage
                                    September 30,      of Total Revenues
                                --------------------  -------------------
                                   2009       2008      2009       2008
                                ---------  ---------  --------   --------
Total revenues                  $ 5,360.8  $ 6,736.3     100.0 %    100.0 %
                                ---------  ---------  --------   --------

Expenses:
  Direct operating                3,062.5    3,801.8      57.1 %     56.4 %
  Depreciation of revenue
   earning equipment              1,468.2    1,658.7      27.4 %     24.6 %
  Selling, general and
   administrative                   488.0      595.8       9.1 %      8.9 %
  Interest expense                  498.3      637.1       9.3 %      9.5 %
  Interest and other income, net    (52.6)     (20.4)     (1.0)%     (0.3)%
                                ---------  ---------  --------   --------
Total expenses                    5,464.4    6,673.0     101.9 %     99.1 %
                                ---------  ---------  --------   --------
Income (loss) before income
 taxes                             (103.6)      63.3      (1.9)%      0.9 %
Benefit (provision) for
 taxes on income                     19.9      (36.0)      0.3 %     (0.5)%
                                ---------  ---------  --------   --------
Net income (loss)                   (83.7)      27.3      (1.6)%      0.4 %
Less: Net income attributable
 to noncontrolling interest         (11.4)     (16.1)     (0.2)%     (0.2)%
                                ---------  ---------  --------   --------
Net income (loss) attributable
 to Hertz Global Holdings, Inc.
 and Subsidiaries' common
 stockholders                   $   (95.1) $    11.2      (1.8)%      0.2 %
                                =========  =========  ========   ========

Weighted average number of
 shares outstanding:
     Basic                          358.5      322.6
     Diluted                        358.5      322.6




Earnings (loss) per share
 attributable to Hertz
 Global Holdings, Inc. and
 Subsidiaries' common
 stockholders:
     Basic                      $   (0.27) $    0.03
     Diluted                    $   (0.27) $    0.03




                                                                    Table 2
                        HERTZ GLOBAL HOLDINGS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               (In millions)
                                 Unaudited

                                  Three Months Ended September 30, 2009
                                ------------------------------------------
                                     As                            As
                                  Reported     Adjustments      Adjusted
                                ------------   -----------    ------------
Total revenues                  $    2,041.4   $         -    $    2,041.4
                                ------------   -----------    ------------

Expenses:
  Direct operating                   1,118.6         (46.1)(a)     1,072.5
  Depreciation of revenue
   earning equipment                   499.1          (2.0)(b)       497.1
  Selling, general and
   administrative                      179.7         (22.9)(c)       156.8
  Interest expense                     169.3         (48.5)(d)       120.8
  Interest and other income, net        (1.1)            -            (1.1)
                                ------------   -----------    ------------
Total expenses                       1,965.6        (119.5)        1,846.1
                                ------------   -----------    ------------
Income before income taxes              75.8         119.5           195.3
Provision for taxes on income           (6.9)        (59.5)(e)       (66.4)
                                ------------   -----------    ------------
Net income                              68.9          60.0           128.9
Less: Net income attributable
 to noncontrolling interest             (4.4)            -            (4.4)
                                ------------   -----------    ------------
Net income attributable to
 Hertz Global Holdings, Inc.
 and Subsidiaries' common
 stockholders                   $       64.5   $      60.0    $      124.5
                                ============   ===========    ============




                                  Three Months Ended September 30, 2008
                                ------------------------------------------
                                     As                            As
                                  Reported     Adjustments      Adjusted
                                ------------   -----------    ------------
Total revenues                  $    2,421.9   $         -    $    2,421.9
                                ------------   -----------    ------------

Expenses:
  Direct operating                   1,351.8         (76.8)(a)     1,275.0
  Depreciation of revenue
   earning equipment                   595.0          (6.1)(b)       588.9
  Selling, general and
   administrative                      234.3         (39.8)(c)       194.5
  Interest expense                     220.1         (20.2)(d)       199.9
  Interest and other income, net        (5.5)            -            (5.5)
                                ------------   -----------    ------------
Total expenses                       2,395.7        (142.9)        2,252.8
                                ------------   -----------    ------------
Income before income taxes              26.2         142.9           169.1
Provision for taxes on income           (2.9)        (54.6)(e)       (57.5)
                                ------------   -----------    ------------
Net income                              23.3          88.3           111.6
Less: Net income attributable
 to noncontrolling interest             (5.6)            -            (5.6)
                                ------------   -----------    ------------
Net income attributable to
 Hertz Global Holdings, Inc.
 and Subsidiaries' common
 stockholders                   $       17.7  $       88.3    $      106.0
                                ============  ============    ============




                                   Nine Months Ended September 30, 2009
                                ------------------------------------------
                                     As                            As
                                  Reported     Adjustments      Adjusted
                                ------------   -----------    ------------
Total revenues                  $    5,360.8   $         -    $    5,360.8
                                ------------   -----------    ------------

Expenses:
  Direct operating                   3,062.5        (126.3)(a)     2,936.2
  Depreciation of revenue
   earning equipment                 1,468.2         (11.7)(b)     1,456.5
  Selling, general and
   administrative                      488.0         (52.6)(c)       435.4
  Interest expense                     498.3        (121.2)(d)       377.1
  Interest and other income, net       (52.6)         48.5 (f)        (4.1)
                                ------------   -----------    ------------
Total expenses                       5,464.4        (263.3)        5,201.1
                                ------------   -----------    ------------
Income (loss) before income
 taxes                                (103.6)        263.3           159.7
Benefit (provision) for taxes
 on income                              19.9         (74.2)(e)       (54.3)
                                ------------   -----------    ------------
Net income (loss)                      (83.7)        189.1           105.4
Less: Net income attributable
 to noncontrolling interest            (11.4)            -           (11.4)
                                ------------   -----------    ------------
Net income (loss) attributable
 to Hertz Global Holdings, Inc.
 and Subsidiaries' common
 stockholders                   $      (95.1) $      189.1    $       94.0
                                ============  ============    ============




                                   Nine Months Ended September 30, 2008
                                ------------------------------------------
                                     As                            As
                                  Reported     Adjustments      Adjusted
                                ------------   -----------    ------------
Total revenues                  $    6,736.3   $         -    $    6,736.3
                                ------------   -----------    ------------

Expenses:
  Direct operating                   3,801.8        (156.8)(a)     3,645.0
  Depreciation of revenue
   earning equipment                 1,658.7         (15.7)(b)     1,643.0
  Selling, general and
   administrative                      595.8         (48.6)(c)       547.2
  Interest expense                     637.1         (56.4)(d)       580.7
  Interest and other income, net       (20.4)            -           (20.4)
                                ------------   -----------    ------------
Total expenses                       6,673.0        (277.5)        6,395.5
                                ------------   -----------    ------------
Income before income taxes              63.3         277.5           340.8
Provision for taxes on income          (36.0)        (79.9)(e)      (115.9)
                                ------------   -----------    ------------
Net income                              27.3         197.6           224.9
Less: Net income attributable
 to noncontrolling interest            (16.1)            -           (16.1)
                                ------------   -----------    ------------
Net income attributable to
 Hertz Global Holdings, Inc.
 and Subsidiaries' common
 stockholders                   $       11.2  $      197.6    $      208.8
                                ============  ============    ============


(a)  Represents the increase in amortization of other intangible assets,
     depreciation of property and equipment and accretion of certain
     revalued liabilities relating to purchase accounting. For the three
     months ended September 30, 2009 and 2008, also includes restructuring
     and restructuring related charges of $26.4 million and $60.3 million,
     respectively. For the nine months ended September 30, 2009 and 2008,
     also includes restructuring and restructuring related charges of
     $73.4 million and $98.7 million, respectively. For the three and nine
     months ended September 30, 2009, also includes gasoline hedge gains of
     $0.1 million and $5.0 million, respectively. For the three months
     ended September 30, 2008, also includes vacation accrual adjustments
     of $2.4 million.
(b)  Represents the increase in depreciation of revenue earning equipment
     based upon its revaluation relating to purchase accounting.
(c)  Represents an increase in depreciation of property and equipment
     relating to purchase accounting. For the three months ended September
     30, 2009 and 2008, also includes restructuring and restructuring
     related charges of $20.7 million and $24.7 million, respectively. For
     the nine months ended September 30, 2009 and 2008, also includes
     restructuring and related charges of $45.4 million and $49.5 million,
     respectively. For the three and nine months ended September 30, 2009,
     also includes interest rate cap losses of $2.0 million and $2.0
     million, respectively. For the three months ended September 30, 2008,
     also includes vacation accrual adjustment of $0.1 million. For the
     three and nine months ended September 30, 2008, also includes interest
     rate swaption loss of $15.0 million and gain of $2.8 million,
     respectively. For all periods presented, also includes other
     adjustments which are detailed in Table 5.
(d)  Represents non-cash debt charges relating to the amortization of
     deferred debt financing costs and debt discounts. For the three and
     nine months ended September 30, 2009, also includes $22.4 million and
     $52.2 million, respectively, associated with the amortization of
     amounts pertaining to the de-designation of our interest rate swaps as
     effective hedging instruments. For the three and nine months ended
     September 30, 2008, also includes $2.8 million and $7.8 million,
     respectively, associated with the ineffectiveness of our interest rate
     swaps.
(e)  Represents a provision for income taxes derived utilizing a normalized
     income tax rate (34% for 2009 and 2008).
(f)  Represents a gain (net of transaction costs) recorded in connection
     with the buyback of portions of our Senior Notes and Senior
     Subordinated Notes during the nine months ended September 30, 2009.




                                                                    Table 3
                        HERTZ GLOBAL HOLDINGS, INC.
                      SEGMENT AND OTHER INFORMATION
                 (In millions, except per share amounts)
                                Unaudited

                                 Three Months Ended     Nine Months Ended
                                    September 30,         September 30,
                                --------------------  --------------------
                                   2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Revenues:
  Car rental                    $ 1,757.7  $ 1,986.5  $ 4,515.3  $ 5,442.8
  Equipment rental                  280.5      433.1      837.0    1,287.4
  Other reconciling items             3.2        2.3        8.5        6.1
                                ---------  ---------  ---------  ---------
                                $ 2,041.4  $ 2,421.9  $ 5,360.8  $ 6,736.3
                                =========  =========  =========  =========

Depreciation of property and
 equipment:
  Car rental                    $    28.2  $    30.0  $    86.6  $    94.6
  Equipment rental                    9.3       11.2       28.3       32.3
  Other reconciling items             1.7        1.5        4.8        4.6
                                ---------  ---------  ---------  ---------
                                $    39.2  $    42.7  $   119.7  $   131.5
                                =========  =========  =========  =========

Amortization of other
 intangible assets:
  Car rental                    $     8.6  $     8.4  $    25.2  $    25.4
  Equipment rental                    8.2        8.1       24.5       24.3
  Other reconciling items             0.2          -        0.4          -
                                ---------  ---------  ---------  ---------
                                $    17.0  $    16.5  $    50.1  $    49.7
                                =========  =========  =========  =========

Income (loss) before income
 taxes:
  Car rental                    $   174.2  $    85.8  $   164.4  $   209.4
  Equipment rental                    3.0       26.9      (23.5)     118.5
  Other reconciling items          (101.4)     (86.5)    (244.5)    (264.6)
                                ---------  ---------  ---------  ---------
                                $    75.8  $    26.2  $  (103.6) $    63.3
                                =========  =========  =========  =========

Corporate EBITDA (a):
  Car rental                    $   281.8  $   193.2  $   444.5  $   439.4
  Equipment rental                  117.5      199.7      348.6      578.5
  Other reconciling items           (11.2)      (6.2)     (32.4)     (31.7)
                                ---------  ---------  ---------  ---------
                                $   388.1  $   386.7  $   760.7  $   986.2
                                =========  =========  =========  =========

Adjusted pre-tax income
 (loss) (a):
  Car rental                    $   258.3  $   167.1  $   368.4  $   355.8
  Equipment rental                   25.2       81.1       50.6      225.9
  Other reconciling items           (88.2)     (79.1)    (259.3)    (240.9)
                                ---------  ---------  ---------  ---------
                                $   195.3  $   169.1  $   159.7  $   340.8
                                =========  =========  =========  =========

Adjusted net income (loss) (a):
  Car rental                    $   170.5  $   110.3  $   243.1  $   234.8
  Equipment rental                   16.6       53.5       33.4      149.1
  Other reconciling items           (62.6)     (57.8)    (182.5)    (175.1)
                                ---------  ---------  ---------  ---------
                                $   124.5  $   106.0  $    94.0  $   208.8
                                =========  =========  =========  =========

Adjusted diluted number of
 shares outstanding (a)             407.7      325.5      407.7      325.5

Adjusted diluted earnings
 per share (a)                  $    0.31  $    0.33  $    0.23  $    0.64


(a)    Represents a non-GAAP measure, see the accompanying reconciliations
       and definitions.
Note:  "Other Reconciling Items" includes general corporate expenses,
       certain interest expense (including net interest on corporate debt),
       as well as other business activities such as our third-party claim
       management services. See Tables 5 and 6.




                                                                    Table 4
                        HERTZ GLOBAL HOLDINGS, INC.
                 SELECTED OPERATING AND FINANCIAL DATA
                               Unaudited

                            Three        Percent       Nine        Percent
                            Months       change       Months       change
                         Ended, or as     from     Ended, or as     from
                         of Sept. 30,  prior year  of Sept. 30,  prior year
                             2009        period        2009        period
                           ---------   ---------    ---------   ---------

Selected Car Rental Operating Data

Worldwide number of
 transactions (in
 thousands)                    6,482        (9.1)%     18,392       (13.1)%
   Domestic                    4,629        (8.4)%     13,300       (13.5)%
   International               1,853       (10.9)%      5,092       (12.0)%

Worldwide transaction
 days (in thousands)          33,456        (5.8)%     89,293        (9.8)%
   Domestic                   21,705        (4.0)%     60,163        (9.3)%
   International              11,751        (9.0)%     29,130       (10.9)%

Worldwide rental rate
 revenue per transaction
 day (a)                   $   43.98        (1.9)%  $   42.89        (2.2)%
   Domestic                $   43.47        (3.4)%  $   42.33        (2.5)%
   International (b)       $   44.90         0.8 %  $   44.04        (1.6)%

Worldwide average number of
 company-operated cars
 during period               445,200        (9.3)%    410,500       (12.2)%
   Domestic                  285,500        (8.6)%    272,100       (12.5)%
   International             159,700       (10.4)%    138,400       (11.7)%

Worldwide revenue earning
 equipment, net
 (in millions)             $ 7,157.1       (15.5)%  $ 7,157.1       (15.5)%

Selected Worldwide Equipment Rental Operating Data

Rental and rental related
 revenue (in millions)
 (a)(b)                    $   248.9       (33.6)%  $   750.9       (31.9)%
Same store revenue growth,
 including initiatives
 (a)(b)                        (33.4)%       N/M        (28.9)%       N/M
Average acquisition cost of
 revenue earning equipment
 operated during period
 (in millions)             $ 2,833.7       (16.9)%  $ 2,888.8       (16.3)%
Revenue earning equipment,
 net (in millions)         $ 1,893.1       (21.5)%  $ 1,893.1       (21.5)%

Other Financial Data (in millions)

Cash flows provided by
 operating activities      $   608.8       (33.9)%  $ 1,307.2       (32.3)%
Levered after-tax cash flow
 before fleet growth (a)       (69.4)      (89.3)%      308.5         N/M
Levered after-tax cash flow
 after fleet growth (a)        369.1         N/M        178.1         N/M
Total net cash flow (a)         70.8         N/M        703.6         N/M
EBITDA (a)                     796.2       (10.5)%    2,021.3       (19.3)%
Corporate EBITDA (a)           388.1         0.4 %      760.7       (22.9)%

Selected Balance Sheet Data (in millions)

                          September 30,            December 31,
                              2009                     2008
                           ---------                ---------
Cash and cash equivalents  $   926.7                $   594.3
Total revenue earning
 equipment, net              9,050.2                  8,691.5
Total assets                16,156.7                 16,451.4
Total debt                  10,348.4                 10,972.3
Net corporate debt (a)       3,638.9                  3,817.0
Net fleet debt (a)           5,378.1                  5,829.6
Total net debt (a)           9,017.0                  9,646.6
Total equity                 2,120.9                  1,488.3


(a)    Represents a non-GAAP measure, see the accompanying
       reconciliations and definitions.
(b)    Based on 12/31/08 foreign exchange rates.
N/M    Percentage change not meaningful.




                                                                    Table 5
                        HERTZ GLOBAL HOLDINGS, INC.
           RECONCILIATION OF GAAP TO NON-GAAP EARNINGS MEASURES
                 (In millions, except per share amounts)
                                Unaudited

ADJUSTED PRE-TAX INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS)

                                Three Months Ended September 30, 2009
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------
Total revenues:             $  1,757.7  $    280.5  $      3.2  $  2,041.4
                            ----------  ----------  ----------  ----------
Expenses:
  Direct operating and
   selling, general and
   administrative              1,083.1       189.8        25.4     1,298.3
  Depreciation of revenue
   earning equipment             425.4        73.7           -       499.1
  Interest expense                76.0        13.9        79.4       169.3
  Interest and other income,
   net                            (1.0)        0.1        (0.2)       (1.1)
                            ----------  ----------  ----------  ----------
Total expenses                 1,583.5       277.5       104.6     1,965.6
                            ----------  ----------  ----------  ----------
Income (loss) before income
 taxes                           174.2         3.0      (101.4)       75.8
Adjustments:
  Purchase accounting (a):
    Direct operating and
     selling, general and
     administrative               10.4         8.8         0.5        19.7
    Depreciation of revenue
     earning equipment               -         2.0           -         2.0
  Non-cash debt charges (b)       37.7         2.2         8.6        48.5
  Restructuring charges (c)       25.4         9.1         1.2        35.7
  Restructuring related
   charges (c)                    10.6         0.1         0.7        11.4
  Derivative losses (c)             -           -         1.9         1.9
  Management transition
   costs (d)                         -           -         0.3         0.3
                            ----------  ----------  ----------  ----------
Adjusted pre-tax income
 (loss)                          258.3        25.2       (88.2)      195.3
Assumed (provision) benefit
 for income taxes of 34%         (87.8)       (8.6)       30.0       (66.4)
Noncontrolling interest              -           -        (4.4)       (4.4)
                            ----------  ----------  ----------  ----------
Adjusted net income (loss)  $    170.5  $     16.6  $    (62.6) $    124.5
                            ==========  ==========  ==========  ==========

Adjusted diluted number of
 shares outstanding                                                  407.7

Adjusted diluted earnings
 per share                                                      $     0.31




                                Three Months Ended September 30, 2008
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------
Total revenues:             $  1,986.5  $    433.1  $      2.3  $  2,421.9
                            ----------  ----------  ----------  ----------
Expenses:
  Direct operating and
   selling, general and
   administrative              1,279.2       289.5        17.4     1,586.1
  Depreciation of revenue
   earning equipment             504.2        90.8           -       595.0
  Interest expense               119.4        26.2        74.5       220.1
  Interest and other income,
   net                            (2.1)       (0.3)       (3.1)       (5.5)
                            ----------  ----------  ----------  ----------
Total expenses                 1,900.7       406.2        88.8     2,395.7
                            ----------  ----------  ----------  ----------
Income (loss) before income
 taxes                            85.8        26.9       (86.5)       26.2
Adjustments:
  Purchase accounting (a):
    Direct operating and
     selling, general and
     administrative                9.9         8.7         0.5        19.1
    Depreciation of revenue
     earning equipment               -         6.1           -         6.1
  Non-cash debt charges (b)       13.5         2.6         4.1        20.2
  Restructuring charges (c)       36.4        36.6         1.9        74.9
  Restructuring related
   charges (c)                     8.3         0.8         1.0        10.1
  Derivative losses (c)           15.0           -           -        15.0
  Vacation accrual
   adjustment (c)                 (1.8)       (0.6)       (0.1)       (2.5)
                            ----------  ----------  ----------  ----------
Adjusted pre-tax income
 (loss)                          167.1        81.1       (79.1)      169.1
Assumed (provision) benefit
 for income taxes of 34%         (56.8)      (27.6)       26.9       (57.5)
Noncontrolling interest              -           -        (5.6)       (5.6)
                            ----------  ----------  ----------  ----------
Adjusted net income (loss)  $    110.3  $     53.5  $    (57.8) $    106.0
                            ==========  ==========  ==========  ==========

Adjusted diluted number of
 shares outstanding                                                  325.5

Adjusted diluted earnings
 per share                                                      $     0.33




                                 Nine Months Ended September 30, 2009
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------
Total revenues:             $  4,515.3  $    837.0  $      8.5  $  5,360.8
                            ----------  ----------  ----------  ----------
Expenses:
  Direct operating and
   selling, general and
   administrative              2,909.0       570.7        70.8     3,550.5
  Depreciation of revenue
   earning equipment           1,220.6       247.6           -     1,468.2
  Interest expense               224.1        42.2       232.0       498.3
  Interest and other income,
   net                            (2.8)          -       (49.8)      (52.6)
                            ----------  ----------  ----------  ----------
Total expenses                 4,350.9       860.5       253.0     5,464.4
                            ----------  ----------  ----------  ----------
Income (loss) before income
 taxes                           164.4       (23.5)     (244.5)     (103.6)
Adjustments:
  Purchase accounting (a):
    Direct operating and
     selling, general and
     administrative               29.7        26.4         1.7        57.8
    Depreciation of revenue
     earning equipment               -        11.7           -        11.7
  Non-cash debt charges (b)       91.9         6.8        22.5       121.2
  Restructuring charges (c)       50.3        28.9         8.0        87.2
  Restructuring related
   charges (c)                    27.8         0.3         3.5        31.6
  Derivative gains (c)               -           -        (3.0)       (3.0)
  Management transition
   costs (d)                         -           -         1.0         1.0
  Third party bankruptcy
   reserve (d)                     4.3           -           -         4.3
  Gain on debt buyback (e)           -           -       (48.5)      (48.5)
                            ----------  ----------  ----------  ----------
Adjusted pre-tax income
 (loss)                          368.4        50.6      (259.3)      159.7
Assumed (provision) benefit
 for income taxes of 34%        (125.3)      (17.2)       88.2       (54.3)
Noncontrolling interest              -           -       (11.4)      (11.4)
                            ----------  ----------  ----------  ----------
Adjusted net income (loss)  $    243.1  $     33.4  $   (182.5) $     94.0
                            ==========  ==========  ==========  ==========

Adjusted diluted number of
 shares outstanding                                                  407.7

Adjusted diluted earnings
 per share                                                      $     0.23




                                 Nine Months Ended September 30, 2008
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------
Total revenues:             $  5,442.8  $  1,287.4  $      6.1  $  6,736.3
                            ----------  ----------  ----------  ----------
Expenses:
  Direct operating and
   selling, general and
   administrative              3,516.8       822.5        58.3     4,397.6
  Depreciation of revenue
   earning equipment           1,399.7       259.0           -     1,658.7
  Interest expense               322.6        88.5       226.0       637.1
  Interest and other income,
   net                            (5.7)       (1.1)      (13.6)      (20.4)
                            ----------  ----------  ----------  ----------
Total expenses                 5,233.4     1,168.9       270.7     6,673.0
                            ----------  ----------  ----------  ----------
Income (loss) before income
 taxes                           209.4       118.5      (264.6)       63.3
Adjustments:
  Purchase accounting (a):
   Direct operating and
    selling, general and
    administrative                30.6        26.6         1.5        58.7
   Depreciation of revenue
    earning equipment             (0.1)       15.8           -        15.7
  Non-cash debt charges (b)       37.9         8.0        10.5        56.4
  Restructuring charges (c)       64.7        55.0         7.5       127.2
  Restructuring related
   charges (c)                    16.1         2.0         2.9        21.0
  Derivative gains (c)            (2.8)          -           -        (2.8)
  Management transition
   costs (d)                         -           -         1.3         1.3
                            ----------  ----------  ----------  ----------
Adjusted pre-tax income
 (loss)                          355.8       225.9      (240.9)      340.8
Assumed (provision) benefit
 for income taxes of 34%        (121.0)      (76.8)       81.9      (115.9)
Noncontrolling interest              -           -       (16.1)      (16.1)
                            ----------  ----------  ----------  ----------
Adjusted net income (loss)  $    234.8  $    149.1  $   (175.1) $    208.8
                            ==========  ==========  ==========  ==========

Adjusted diluted number of
 shares outstanding                                                  325.5

Adjusted diluted earnings
 per share                                                      $     0.64


(a)    Represents the purchase accounting effects of the acquisition of all
       of Hertz's common stock on December 21, 2005, and any subsequent
       acquisitions on our results of operations relating to increased
       depreciation and amortization of tangible and intangible assets and
       accretion of revalued workers' compensation and public liability and
       property damage liabilities.
(b)    Represents non-cash debt charges relating to the amortization of
       deferred debt financing costs and debt discounts. For the three and
       nine months ended September 30, 2009, also includes $22.4 million
       and $52.2 million, respectively, associated with the amortization of
       amounts pertaining to the de-designation of our interest rate swaps
       as effective hedging instruments. For the three and nine months
       ended September 30, 2008, also includes $2.8 million and
       $7.8 million, respectively, associated with the ineffectiveness of
       our interest rate swaps.
(c)    Amounts are included within direct operating and selling, general
       and administrative expense in our statement of operations.
(d)    Amounts are included within selling, general and administrative
       expense in our statement of operations.
(e)    Amounts are included within interest and other income, net in our
       statement of operations.




                                                                    Table 6
                        HERTZ GLOBAL HOLDINGS, INC.
            RECONCILIATION OF GAAP TO NON-GAAP EARNINGS MEASURES
                               (In millions)
                                 Unaudited

EBITDA, CORPORATE EBITDA, UNLEVERED PRE-TAX CASH FLOW,
LEVERED AFTER-TAX CASH FLOW BEFORE
FLEET GROWTH AND AFTER FLEET GROWTH

                                Three Months Ended September 30, 2009
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Income (loss) before income
 taxes                      $    174.2  $      3.0  $   (101.4) $     75.8
  Depreciation, amortization
   and other purchase
   accounting                    463.1        91.3         2.2       556.6
  Interest, net of interest
   income                         75.0        14.0        79.2       168.2
  Noncontrolling interest            -           -        (4.4)       (4.4)
                            ----------  ----------  ----------  ----------
EBITDA                           712.3       108.3       (24.4)      796.2
Adjustments:
  Car rental fleet interest      (78.5)          -           -       (78.5)
  Car rental fleet
   depreciation                 (425.4)          -           -      (425.4)
  Non-cash expenses and
   charges (a)                    37.4           -        11.1        48.5
  Extraordinary, unusual or
   non-recurring gains
   and losses (b)                 36.0         9.2         2.1        47.3
                            ----------  ----------  ----------  ----------
Corporate EBITDA            $    281.8  $    117.5  $    (11.2)      388.1
                            ==========  ==========  ==========
  Equipment rental
   maintenance capital
   expenditures, net                                                 (69.0)
  Non-fleet capital
   expenditures, net                                                 (10.1)
  Changes in working capital                                        (444.6)
  Changes in other assets
   and liabilities                                                   149.9
                                                                ----------
Unlevered pre-tax cash
 flow (c)                                                             14.3
  Corporate net cash
   interest                                                          (77.0)
  Corporate cash taxes                                                (6.7)
                                                                ----------
Levered after-tax cash flow
 before fleet growth (c)                                             (69.4)
 Equipment rental fleet
  growth capital
  expenditures                                                        50.2
  Car rental net fleet
   equity requirement                                                388.3
                                                                ----------
Levered after-tax cash flow
 after fleet growth (c)                                         $    369.1
                                                                ==========




                                Three Months Ended September 30, 2008
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Income (loss) before income
 taxes                      $     85.8  $     26.9  $    (86.5) $     26.2
  Depreciation, amortization
   and other purchase
   accounting                    542.6       110.1         1.5       654.2
  Interest, net of interest
   income                        117.3        25.9        71.4       214.6
  Noncontrolling interest            -           -        (5.6)       (5.6)
                            ----------  ----------  ----------  ----------
EBITDA                           745.7       162.9       (19.2)      889.4
Adjustments:
  Car rental fleet interest     (119.9)          -           -      (119.9)
  Car rental fleet
   depreciation                 (504.2)          -           -      (504.2)
  Non-cash expenses and
   charges (a)                    28.7           -        10.2        38.9
  Extraordinary, unusual or
   non-recurring
   gains and losses (b)           42.9        36.8         2.8        82.5
                            ----------  ----------  ----------  ----------
Corporate EBITDA            $    193.2  $    199.7  $     (6.2)      386.7
                            ==========  ==========  ==========
  Equipment rental
   maintenance capital
   expenditures, net                                                 (80.5)
  Non-fleet capital
   expenditures, net                                                 (12.3)
  Changes in working capital                                        (654.4)
  Changes in other assets
   and liabilities                                                  (197.0)
                                                                ----------
Unlevered pre-tax cash
 flow (c)                                                           (557.5)
  Corporate net cash
   interest                                                          (86.3)
  Corporate cash taxes                                                (7.7)
                                                                ----------
Levered after-tax cash flow
 before fleet growth (c)                                            (651.5)
 Equipment rental fleet
  growth capital
  expenditures                                                       191.0
  Car rental net fleet
   equity requirement                                                125.4
                                                                ----------
Levered after-tax cash flow
 after fleet growth (c)                                         $   (335.1)
                                                                ==========




                                 Nine Months Ended September 30, 2009
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Income (loss) before income
 taxes                      $    164.4  $    (23.5) $   (244.5) $   (103.6)
  Depreciation, amortization
   and other purchase
   accounting                  1,335.2       300.7         6.2     1,642.1
  Interest, net of interest
   income                        221.3        42.2       230.7       494.2
  Noncontrolling interest            -           -       (11.4)      (11.4)
                            ----------  ----------  ----------  ----------
EBITDA                         1,720.9       319.4       (19.0)    2,021.3
Adjustments:
  Car rental fleet interest     (229.0)          -           -      (229.0)
  Car rental fleet
   depreciation               (1,220.6)          -           -    (1,220.6)
  Non-cash expenses and
   charges (a)                    90.8           -        27.6       118.4
  Extraordinary, unusual or
   non-recurring
   gains and losses (b)           82.4        29.2       (41.0)       70.6
                            ----------  ----------  ----------  ----------
Corporate EBITDA            $    444.5  $    348.6  $    (32.4)      760.7
                            ==========  ==========  ==========
  Equipment rental
   maintenance capital
   expenditures, net                                                (228.8)
  Non-fleet capital
   expenditures, net                                                 (45.1)
  Changes in working capital                                        (271.4)
  Changes in other assets
   and liabilities                                                   336.8
                                                                ----------
Unlevered pre-tax cash
 flow (c)                                                            552.2
  Corporate net cash
   interest                                                         (223.0)
  Corporate cash taxes                                               (20.7)
                                                                ----------
Levered after-tax cash flow
 before fleet growth (c)                                             308.5
 Equipment rental fleet
  growth capital
  expenditures                                                       285.2
  Car rental net fleet
   equity requirement                                               (415.6)
                                                                ----------
Levered after-tax cash flow
 after fleet growth (c)                                         $    178.1
                                                                ==========




                                 Nine Months Ended September 30, 2008
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Income (loss) before income
 taxes                      $    209.4  $    118.5  $   (264.6) $     63.3
  Depreciation, amortization
   and other purchase
   accounting                  1,519.7       315.6         4.6     1,839.9
  Interest, net of interest
   income                        316.9        87.4       212.4       616.7
  Noncontrolling interest            -           -       (16.1)      (16.1)
                            ----------  ----------  ----------  ----------
EBITDA                         2,046.0       521.5       (63.7)    2,503.8
Adjustments:
  Car rental fleet interest     (322.2)          -           -      (322.2)
  Car rental fleet
   depreciation               (1,399.7)          -           -    (1,399.7)
  Non-cash expenses and
   charges (a)                    49.3           -        20.3        69.6
  Extraordinary, unusual or
   non-recurring
   gains and losses (b)           66.0        57.0        11.7       134.7
                            ----------  ----------  ----------  ----------
Corporate EBITDA            $    439.4  $    578.5  $    (31.7)      986.2
                            ==========  ==========  ==========
  Equipment rental
   maintenance capital
   expenditures, net                                                (232.0)
  Non-fleet capital
   expenditures, net                                                (106.5)
  Changes in working capital                                        (323.1)
  Changes in other assets
   and liabilities                                                  (288.3)
                                                                ----------
Unlevered pre-tax cash
 flow (c)                                                             36.3
  Corporate net cash
   interest                                                         (269.5)
  Corporate cash taxes                                               (22.6)
                                                                ----------
Levered after-tax cash flow
 before fleet growth (c)                                            (255.8)
 Equipment rental fleet
  growth capital
  expenditures                                                       277.6
  Car rental net fleet
   equity requirement                                               (284.6)
                                                                ----------
Levered after-tax cash flow
 after fleet growth (c)                                         $   (262.8)
                                                                ==========

(a) As defined in the credit agreements for the senior credit facilities,
    Corporate EBITDA excludes the impact of certain non-cash expenses and
    charges. The adjustments reflect the following:



NON-CASH EXPENSES AND CHARGES
                                Three Months Ended September 30, 2009
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Non-cash amortization of
 debt costs included in
 car rental fleet interest  $     37.4  $        -  $        -  $     37.4
Non-cash stock-based
 employee compensation
 charges                             -           -         9.1         9.1
Derivative losses                    -           -         2.0         2.0
                            ----------  ----------  ----------  ----------
Total non-cash expenses
 and charges                $     37.4  $        -  $     11.1  $     48.5
                            ==========  ==========  ==========  ==========



NON-CASH EXPENSES AND CHARGES
                                Three Months Ended September 30, 2008
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Non-cash amortization of
 debt costs included in
 car rental fleet interest  $     13.7  $        -  $        -  $     13.7
Non-cash stock-based
 employee compensation
 charges                             -           -         6.8         6.8
Non-cash charges for public
 liability and property
 damage                              -           -         3.4         3.4
Derivative losses                 15.0           -           -        15.0
                            ----------  ----------  ----------  ----------
Total non-cash expenses
 and charges                $     28.7  $        -  $     10.2  $     38.9
                            ==========  ==========  ==========  ==========



NON-CASH EXPENSES AND CHARGES
                                 Nine Months Ended September 30, 2009
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Non-cash amortization of
 debt costs included in
 car rental fleet interest  $     90.8  $        -  $        -  $     90.8
Non-cash stock-based
 employee compensation
 charges                             -           -        25.6        25.6
Derivative losses                    -           -         2.0         2.0
                            ----------  ----------  ----------  ----------
Total non-cash expenses
 and charges                $     90.8  $        -  $     27.6  $    118.4
                            ==========  ==========  ==========  ==========



NON-CASH EXPENSES AND CHARGES
                                 Nine Months Ended September 30, 2008
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Non-cash amortization of
 debt costs included
 in car rental fleet
 interest                   $     37.3  $        -  $        -  $     37.3
Non-cash stock-based
 employee compensation
 charges                             -           -        20.3        20.3
Derivative losses                 12.0           -           -        12.0
                            ----------  ----------  ----------  ----------
Total non-cash expenses
 and charges                $     49.3  $        -  $     20.3  $     69.6
                            ==========  ==========  ==========  ==========


(b) As defined in the credit agreements for the senior credit facilities,
    Corporate EBITDA excludes the impact of extraordinary, unusual or
    non-recurring gains or losses or charges or credits.
    The adjustments reflect the following:



EXTRAORDINARY, UNUSUAL OR
 NON-RECURRING ITEMS            Three Months Ended September 30, 2009
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Restructuring charges       $     25.4  $      9.1  $      1.2  $     35.7
Restructuring related
 charges                          10.6         0.1         0.7        11.4
Management transition costs          -           -         0.3         0.3
Derivative gains                     -           -        (0.1)       (0.1)
                            ----------  ----------  ----------  ----------
Total extraordinary,
 unusual or non-recurring
 items                      $     36.0  $      9.2  $      2.1  $     47.3
                            ==========  ==========  ==========  ==========

EXTRAORDINARY, UNUSUAL OR
 NON-RECURRING ITEMS            Three Months Ended September 30, 2008
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Restructuring charges       $     36.4  $     36.6  $      1.9  $     74.9
Restructuring related
 charges                           8.3         0.8         1.0        10.1
Vacation accrual adjustment       (1.8)       (0.6)       (0.1)       (2.5)
                            ----------  ----------  ----------  ----------
Total extraordinary,
 unusual or non-recurring
 items                      $     42.9  $     36.8  $      2.8  $     82.5
                            ==========  ==========  ==========  ==========

EXTRAORDINARY, UNUSUAL OR
 NON-RECURRING ITEMS             Nine Months Ended September 30, 2009
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Restructuring charges       $     50.3  $     28.9  $      8.0  $     87.2
Restructuring related
 charges                          27.8         0.3         3.5        31.6
Third-party bankruptcy
 reserve                           4.3           -           -         4.3
Gain on debt buyback                 -           -       (48.5)      (48.5)
Derivative gains                     -           -        (5.0)       (5.0)
Management transition costs          -           -         1.0         1.0
                            ----------  ----------  ----------  ----------
Total extraordinary,
 unusual or non-recurring
 items                      $     82.4  $     29.2  $    (41.0) $     70.6
                            ==========  ==========  ==========  ==========

EXTRAORDINARY, UNUSUAL OR
 NON-RECURRING ITEMS             Nine Months Ended September 30, 2008
                            ----------------------------------------------
                                                       Other
                               Car      Equipment   Reconciling
                              Rental      Rental       Items       Total
                            ----------  ----------  ----------  ----------

Restructuring charges       $     64.7  $     55.0  $      7.5  $    127.2
Restructuring related
 charges                          16.1         2.0         2.9        21.0
Derivative gains                 (14.8)          -           -       (14.8)
Management transition costs          -           -         1.3         1.3
                            ----------  ----------  ----------  ----------
Total extraordinary,
 unusual or non-recurring
 items                      $     66.0  $     57.0  $     11.7  $    134.7
                            ==========  ==========  ==========  ==========


(c) Amounts include the effect of fluctuations in foreign currency.




                                                                    Table 7
                        HERTZ GLOBAL HOLDINGS, INC.
           RECONCILIATION OF GAAP TO NON-GAAP EARNINGS MEASURES
                      (In millions, except as noted)
                                Unaudited

RECONCILIATION FROM           Three Months Ended      Nine Months Ended
 OPERATING CASH FLOWS            September 30,           September 30,
 TO EBITDA:                 ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------

Net cash provided by
 operating activities       $    608.8  $    921.2  $  1,307.2  $  1,929.9
  Amortization of debt costs     (26.1)      (17.2)      (69.0)      (48.4)
  Derivative gains                (2.0)      (15.0)       (2.0)      (12.0)
  Loss (gain) on sale of
   property and equipment         (0.2)        1.8         1.1         9.4
  Amortization and
   ineffectiveness of
   cash flow hedges              (22.4)       (2.8)      (52.2)       (7.8)
  Stock-based compensation
   charges                       (10.1)       (6.8)      (26.6)      (20.3)
  Asset writedowns               (13.4)      (23.5)      (26.5)      (34.1)
  Noncontrolling interest         (4.4)       (5.6)      (11.4)      (16.1)
  Deferred income taxes          (80.2)       15.8       (99.9)       (5.0)
  Provision (benefit) for
   taxes on income                 6.9         2.9       (19.9)       36.0
  Interest expense, net of
   interest income               168.2       214.6       494.2       616.7
 Changes in assets and
  liabilities, net of
  provision for losses
  on doubtful accounts           171.1      (196.0)      526.3        55.5
                            ----------  ----------  ----------  ----------
EBITDA                      $    796.2  $    889.4  $  2,021.3  $  2,503.8
                            ==========  ==========  ==========  ==========


NET CORPORATE DEBT,
 NET FLEET DEBT           September 30, June 30, December 31, September 30,
 AND TOTAL NET DEBT            2009        2009        2008        2008
                            ----------  ----------  ----------  ----------

Corporate Debt
Debt, less:                 $ 10,348.4  $  9,795.8  $ 10,972.3  $ 12,844.2
  U.S Fleet Debt and
   Pre-Acquisition Notes       3,546.2     3,370.2     4,254.5     4,745.8
  International Fleet Debt
   and other facilities        1,843.0     1,556.0     1,871.4     2,470.7
  Fleet Financing Facility       144.6       144.5       149.3       154.2
  Canadian Fleet Financing
   Facility                      126.8        53.0       111.6       268.7
                            ----------  ----------  ----------  ----------
     Fleet Debt             $  5,660.6  $  5,123.7  $  6,386.8  $  7,639.4
                            ==========  ==========  ==========  ==========
     Corporate Debt         $  4,687.8  $  4,672.1  $  4,585.5  $  5,204.8
                            ==========  ==========  ==========  ==========

Corporate Restricted Cash
Restricted Cash, less:      $    404.7  $    188.5  $    731.4  $    514.0
  Restricted Cash Associated
   with Fleet Debt              (282.5)      (95.3)     (557.2)     (288.2)
                            ----------  ----------  ----------  ----------
     Corporate Restricted
      Cash                  $    122.2  $     93.2  $    174.2  $    225.8
                            ==========  ==========  ==========  ==========

Net Corporate Debt
Corporate Debt, less:       $  4,687.8  $  4,672.1  $  4,585.5  $  5,204.8
  Cash and Equivalents          (926.7)     (570.9)     (594.3)     (731.5)
  Corporate Restricted Cash     (122.2)      (93.2)     (174.2)     (225.8)
                            ----------  ----------  ----------  ----------
     Net Corporate Debt     $  3,638.9  $  4,008.0  $  3,817.0  $  4,247.5
                            ==========  ==========  ==========  ==========

Net Fleet Debt
Fleet Debt, less:           $  5,660.6  $  5,123.7  $  6,386.8  $  7,639.4
  Restricted Cash Associated
   with Fleet Debt              (282.5)      (95.3)     (557.2)     (288.2)
                            ----------  ----------  ----------  ----------
   Net Fleet Debt           $  5,378.1  $  5,028.4  $  5,829.6  $  7,351.2
                            ==========  ==========  ==========  ==========

Total Net Debt              $  9,017.0  $  9,036.4  $  9,646.6  $ 11,598.7
                            ==========  ==========  ==========  ==========


NET CORPORATE DEBT,
 NET FLEET DEBT              June 30, December 31, September 30,
 AND TOTAL NET DEBT            2008        2007        2007
                            ----------  ----------  ----------

Corporate Debt
Debt, less:                 $ 12,693.8  $ 11,960.1  $ 13,035.0
  U.S Fleet Debt and
   Pre-Acquisition Notes       4,698.0     4,603.5     5,099.6
  International Fleet Debt
   and other facilities        2,765.9     2,228.0     2,487.4
  Fleet Financing Facility       158.1       170.4       166.3
  Canadian Fleet Financing
   Facility                      245.0       155.4       272.7
                            ----------  ----------  ----------
     Fleet Debt             $  7,867.0  $  7,157.3  $  8,026.0
                            ==========  ==========  ==========
     Corporate Debt         $  4,826.8  $  4,802.8  $  5,009.0
                            ==========  ==========  ==========

Corporate Restricted Cash
Restricted Cash, less:      $    161.4  $    661.0  $    430.2
  Restricted Cash Associated
   with Fleet Debt               (58.4)     (573.1)     (390.0)
                            ----------  ----------  ----------
     Corporate Restricted
      Cash                  $    103.0  $     87.9  $     40.2
                            ==========  ==========  ==========

Net Corporate Debt
Corporate Debt, less:       $  4,826.8  $  4,802.8  $  5,009.0
  Cash and Equivalents          (811.4)     (730.2)     (397.3)
  Corporate Restricted Cash     (103.0)      (87.9)      (40.2)
                            ----------  ----------  ----------
     Net Corporate Debt     $  3,912.4  $  3,984.7  $  4,571.5
                            ==========  ==========  ==========

Net Fleet Debt
Fleet Debt, less:           $  7,867.0  $  7,157.3  $  8,026.0
  Restricted Cash Associated
   with Fleet Debt               (58.4)     (573.1)     (390.0)
                            ----------  ----------  ----------
     Net Fleet Debt         $  7,808.6  $  6,584.2  $  7,636.0
                            ==========  ==========  ==========

Total Net Debt              $ 11,721.0  $ 10,568.9  $ 12,207.5
                            ==========  ==========  ==========


                              Three Months Ended       Nine Months Ended
                                 September 30,           September 30,
CAR RENTAL RATE REVENUE PER ----------------------  ----------------------
 TRANSACTION DAY (a)           2009        2008        2009        2008
                            ----------  ----------  ----------  ----------

Car rental revenue per
 statement of
 operations (b)             $  1,724.9  $  1,946.1  $  4,436.7  $  5,340.0
Non-rental rate revenue (c)     (219.6)     (262.8)     (590.6)     (740.2)
Foreign currency adjustment      (34.0)      (90.4)      (16.7)     (257.0)
                            ----------  ----------  ----------  ----------
Rental rate revenue         $  1,471.3  $  1,592.9  $  3,829.4  $  4,342.8
                            ==========  ==========  ==========  ==========
Transactions days (in
 thousands)                     33,456      35,525      89,293      99,041
Rental rate revenue per
 transaction
 day (in whole dollars)     $    43.98  $    44.84  $    42.89  $    43.85


EQUIPMENT RENTAL              Three Months Ended       Nine Months Ended
 AND RENTAL                      September 30,           September 30,
 RELATED REVENUE (a)        ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------

Equipment rental revenue
 per statement
 of operations              $    280.3  $    432.9  $    836.4  $  1,286.8
Equipment sales and other
 revenue                         (26.3)      (44.8)      (82.2)     (137.4)
Foreign currency adjustment       (5.1)      (13.4)       (3.3)      (46.2)
                            ----------  ----------  ----------  ----------
Rental and rental related
 revenue                    $    248.9  $    374.7  $    750.9  $  1,103.2
                            ==========  ==========  ==========  ==========

(a)    Based on 12/31/08 foreign exchange rates.
(b)    Includes U.S. off-airport revenues of $277.1 million and $279.9
       million for the three months ended September 30, 2009 and 2008,
       respectively, and $722.8 million and $758.2 million for the nine
       months ended September 30, 2009 and 2008, respectively.
(c)    Consists of domestic revenues of $149.4 million and $185.8 million
       and international revenues of $70.2 million and $77.0 million for
       the three months ended September 30, 2009 and 2008, respectively,
       and domestic revenues of $411.0 million and $528.8 million and
       international revenues of $179.6 million and $211.4 million for the
       nine months ended September 30, 2009 and 2008, respectively.




                                                                    Table 8
                        HERTZ GLOBAL HOLDINGS, INC.
            RECONCILIATION OF GAAP TO NON-GAAP EARNINGS MEASURES
                               (In millions)
                                 Unaudited

EBITDA, CORPORATE EBITDA, UNLEVERED PRE-TAX CASH FLOW, LEVERED
AFTER-TAX CASH FLOW BEFORE FLEET GROWTH AND
AFTER FLEET GROWTH

                               Last Twelve        Nine           Three
                               Months Ended   Months Ended   Months Ended
                               September 30,  September 30,  December 31,
                                   2009           2009           2008
                               -------------  -------------  -------------

Loss before income taxes       $    (1,549.8) $      (103.6) $    (1,446.2)
  Depreciation, amortization
   and other purchase
   accounting                        2,235.5        1,642.1          593.4
  Interest, net of interest
   income                              722.7          494.2          228.5
  Impairment charges                 1,168.9              -        1,168.9
  Noncontrolling interest              (16.0)         (11.4)          (4.6)
                               -------------  -------------  -------------
EBITDA                               2,561.3        2,021.3          540.0
Adjustments:
  Car rental fleet interest           (357.5)        (229.0)        (128.5)
  Car rental fleet depreciation     (1,664.6)      (1,220.6)        (444.0)
  Non-cash expenses and charges        164.6          118.4           46.2
  Non-cash expenses and charges
   to arrive at LTM (a)                 (3.5)             -              -
  Extraordinary, unusual or
   non-recurring gains and
   losses                              173.8           70.6          103.2
                               -------------  -------------  -------------
Corporate EBITDA                       874.1          760.7          116.9
  Equipment rental maintenance
   capital expenditures, net          (309.1)        (228.8)         (80.3)
  Non-fleet capital
   expenditures, net                   (43.5)         (45.1)           1.6
  Changes in working capital            43.9         (271.4)         315.3
  Changes in other assets
   and liabilities                      54.2          336.8         (282.6)
  Changes in other assets and
   liabilities to arrive at
   LTM (a)                               3.5              -              -
                               -------------  -------------  -------------
Unlevered pre-tax cash flow (b)        623.1          552.2           70.9
  Corporate net cash interest         (311.8)        (223.0)         (88.8)
  Corporate cash taxes                 (31.5)         (20.7)         (10.8)
                               -------------  -------------  -------------
Levered after-tax cash flow
 before fleet growth (b)               279.8          308.5          (28.7)
  Equipment rental fleet growth
   capital expenditures                500.3          285.2          215.1
  Car rental net fleet
   equity requirement                 (171.5)        (415.6)         244.1
                               -------------  -------------  -------------
Levered after-tax cash flow
 after fleet growth (b)        $       608.6  $       178.1  $       430.5
                               =============  =============  =============




                               Last Twelve        Nine           Three
                               Months Ended   Months Ended   Months Ended
                               September 30,  September 30,  December 31,
                                   2008           2008           2007
                               -------------  -------------  -------------

Income before income taxes     $       144.6  $        63.3  $        81.3
  Depreciation, amortization
   and other purchase
   accounting                        2,403.2        1,839.9          563.3
  Interest, net of interest
   income                              830.8          616.7          214.1
  Noncontrolling interest              (21.4)         (16.1)          (5.3)
                               -------------  -------------  -------------
EBITDA                               3,357.2        2,503.8          853.4
Adjustments:
  Car rental fleet interest           (429.3)        (322.2)        (107.1)
  Car rental fleet depreciation     (1,815.4)      (1,399.7)        (415.7)
  Non-cash expenses and charges         96.9           69.6           27.3
  Non-cash expenses and charges
   to arrive at LTM (a)                 (2.9)             -              -
  Extraordinary, unusual or
   non-recurring gains and
   losses                              162.0          134.7           27.3
                               -------------  -------------  -------------
Corporate EBITDA                     1,368.5          986.2          385.2
  Equipment rental maintenance
   capital expenditures, net          (310.7)        (232.0)         (78.7)
  Non-fleet capital
   expenditures, net                  (130.4)        (106.5)         (23.9)
  Changes in working capital          (146.5)        (323.1)         176.6
  Changes in other assets
   and liabilities                    (322.2)        (288.3)         (33.9)
  Changes in other assets and
   liabilities to arrive at
   LTM (a)                               2.9              -              -
                               -------------  -------------  -------------
Unlevered pre-tax cash flow (b)        461.6           36.3          425.3
  Corporate net cash interest         (368.8)        (269.5)         (99.3)
  Corporate cash taxes                 (32.5)         (22.6)          (9.9)
                               -------------  -------------  -------------
Levered after-tax cash flow
 before fleet growth (b)                60.3         (255.8)         316.1
  Equipment rental fleet growth
   capital expenditures                293.3          277.6           15.7
  Car rental net fleet
   equity requirement                  (29.6)        (284.6)         255.0
                               -------------  -------------  -------------
Levered after-tax cash flow
 after fleet growth (b)        $       324.0  $      (262.8) $       586.8
                               =============  =============  =============


(a)   Adjustment necessary due to the nature of the calculation of non-cash
      expenses and charges where, on a quarterly basis the cash payments
      for a specific liability may exceed the related non-cash expense, but
      not on a cumulative last twelve month basis.
(b)   Amounts include the effect of fluctuations in foreign currency.




                                                                    Table 9
                        HERTZ GLOBAL HOLDINGS, INC.
                RECONCILIATION OF GAAP TO NON-GAAP MEASURES
                              (In millions)
                                Unaudited

TOTAL NET CASH FLOW

                   Three          Three           Nine           Nine
                Months Ended   Months Ended   Months Ended   Months Ended
                September 30,  September 30,  September 30,  September 30,
                    2009           2008           2009           2008
                -------------  -------------  -------------  -------------

Net cash
 provided by
 operating
 activities     $       608.8  $       921.2  $     1,307.2  $     1,929.9
Net cash used
 in investing
 activities            (926.8)      (1,399.1)        (843.8)      (2,892.0)
Net change in
 restricted cash        213.2          355.5         (330.6)        (146.1)
Payment of
 financing
 costs                  (34.1)         (23.3)         (40.9)         (33.8)
Payment of debt
 offering costs          (0.3)             -          (15.3)             -
Proceeds from
 exercise of
 stock options            2.1            1.2            4.8            6.8
Proceeds from
 employee stock
 purchase plan            0.4              -            1.8              -
Distributions
 to noncontrol-
 ling interest           (3.9)          (7.0)         (11.9)         (13.0)
Proceeds from
 sale of stock
 and conversion
 feature on debt        200.1              -          646.9              -
Proceeds from
 disgorgement
 of stockholder
 short-swing
 profits                    -              -              -            0.1
Cash overdraft
 reclass                 11.3           (6.2)         (14.6)         (25.8)
                -------------  -------------  -------------  -------------

Total net cash
 flow           $        70.8  $      (157.7) $       703.6  $    (1,173.9)
                =============  =============  =============  =============



                   Twelve           Nine          Three
                Months Ended   Months Ended    Months Ended
                September 30,  September 30,   December 31,
                    2009           2009            2008
                -------------  -------------  -------------

Net cash
 provided by
 operating
 activities     $     1,921.5  $     1,307.2  $       614.3
Net cash
 provided by
 (used in)
 investing
 activities             139.9         (843.8)         983.7
Net change in
 restricted cash       (112.7)        (330.6)         217.9
Payment of
 financing
 costs                  (68.3)         (40.9)         (27.4)
Payment of debt
 offering costs         (15.3)         (15.3)             -
Proceeds from
 exercise of
 stock options            4.8            4.8              -
Proceeds from
 employee stock
 purchase plan            1.8            1.8              -
Distributions
 to noncontrol-
 ling interest          (23.1)         (11.9)         (11.2)
Proceeds from
 sale of stock
 and conversion
 feature on debt        646.9          646.9              -
Cash overdraft
 reclass                (24.9)         (14.6)         (10.3)
                -------------  -------------  -------------

Total net cash
 flow           $     2,470.6  $       703.6  $     1,767.0
                =============  =============  =============



                   Twelve           Nine          Three
                Months Ended   Months Ended    Months Ended
                September 30,  September 30,   December 31,
                    2008           2008            2007
                -------------  -------------  -------------

Net cash
 provided by
 operating
 activities     $     2,723.6  $     1,929.9  $       793.7
Net cash
 provided by
 (used in)
 investing
 activities          (2,175.4)      (2,892.0)         716.6
Net change in
 restricted
 cash                    83.8         (146.1)         229.9
Payment of
 financing
 costs                  (49.4)         (33.8)         (15.6)
Proceeds from
 exercise of
 stock options            8.1            6.8            1.3
Distributions
 to noncontrol-
 ling interest          (20.7)         (13.0)          (7.7)
Proceeds from
 disgorgement
 of stockholder
 short-swing
 profits                  0.1            0.1              -
Cash overdraft
 reclass                (14.9)         (25.8)          10.9
                -------------  -------------  -------------

Total net cash
 flow           $       555.2  $    (1,173.9) $     1,729.1
                =============  =============  =============


                                                                  Exhibit 1

Non-GAAP Measures: Definitions and Use/Importance

Hertz Global Holdings, Inc. ("Hertz Holdings") is our top-level holding company. The Hertz Corporation ("Hertz") is our primary operating company. The term "GAAP" refers to accounting principles generally accepted in the United States of America.

Definitions of non-GAAP measures utilized in Hertz Holdings' October 29, 2009 Press Release are set forth below. Also set forth below is a summary of the reasons why management of Hertz Holdings and Hertz believes that the presentation of the non-GAAP financial measures included in the Press Release provide useful information regarding Hertz Holdings' and Hertz's financial condition and results of operations and additional purposes, if any, for which management of Hertz Holdings and Hertz utilize the non-GAAP measures.

1. Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), Corporate EBITDA and Corporate EBITDA Retention

We present EBITDA and Corporate EBITDA to provide investors with supplemental measures of our operating performance and liquidity and, in the case of Corporate EBITDA, information utilized in the calculation of the financial covenants under Hertz's senior credit facilities. EBITDA is defined as consolidated net income before net interest expense, consolidated income taxes and consolidated depreciation and amortization. Corporate EBITDA differs from the term "EBITDA" as it is commonly used. Corporate EBITDA means "EBITDA" as that term is defined under Hertz's senior credit facilities, which is generally consolidated net income before net interest expense (other than interest expense relating to certain car rental fleet financing), consolidated income taxes, consolidated depreciation (other than depreciation related to the car rental fleet) and amortization and before certain other items, in each case as more fully defined in the agreements governing Hertz's senior credit facilities. The other items excluded in this calculation include, but are not limited to: non-cash expenses and charges; extraordinary, unusual or non-recurring gains or losses; gains or losses associated with the sale or write-down of assets not in the ordinary course of business; and earnings to the extent of cash dividends or distributions paid from non-controlled affiliates. Further, the covenants in Hertz's senior credit facilities are calculated using Corporate EBITDA for the most recent four fiscal quarters as a whole. As a result, the measure can be disproportionately affected by a particularly strong or weak quarter. Further, it may not be comparable to the measure for any subsequent four-quarter period or for any complete fiscal year. Corporate EBITDA retention is calculated as one minus the year over year change in Corporate EBITDA divided by the year over year change in revenue; see Table 3 for amounts utilized in the calculation.

Management uses EBITDA and Corporate EBITDA as performance and cash flow metrics for internal monitoring and planning purposes, including the preparation of our annual operating budget and monthly operating reviews, as well as to facilitate analysis of investment decisions. In addition, both metrics are important to allow us to evaluate profitability and make performance trend comparisons between us and our competitors. Further, we believe EBITDA and Corporate EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industries.

EBITDA is also used by management and investors to evaluate our operating performance exclusive of financing costs and depreciation policies. Further, because we have two business segments that are financed differently and have different underlying depreciation characteristics, EBITDA enables investors to isolate the effects on profitability of operating metrics such as revenue, operating expenses and selling, general and administrative expenses. In addition to its use to monitor performance trends, EBITDA provides a comparative metric to management and investors that is consistent across companies with different capital structures and depreciation policies. This enables management and investors to compare our performance on a consolidated basis and on a segment basis to that of our peers. In addition, our management uses consolidated EBITDA as a proxy for cash flow available to finance fleet expenditures and the costs of our capital structure on a day-to-day basis so that we can more easily monitor our cash flows when a full statement of cash flows is not available.

Corporate EBITDA also serves as an important measure of our performance. Corporate EBITDA for our car rental segment enables us to assess our operating performance inclusive of fleet management performance, depreciation assumptions and the cost of financing our fleet. In addition, Corporate EBITDA for our car rental segment allows us to compare our performance, inclusive of fleet mix and financing decisions, to the performance of our competitors. Since most of our competitors utilize asset-backed fleet debt to finance fleet acquisitions, this measure is relevant for evaluating our operating efficiency inclusive of our fleet acquisition and utilization. For our equipment rental segment, Corporate EBITDA provides an appropriate measure of performance because the investment in our equipment fleet is longer-term in nature than for our car rental segment and therefore Corporate EBITDA allows management to assess operating performance exclusive of interim changes in depreciation assumptions. Further, unlike our car rental segment, our equipment rental fleet is not financed through separate securitization-based fleet financing facilities, but rather through our corporate debt. Corporate EBITDA for our equipment rental segment is a key measure used to make investment decisions because it enables us to evaluate return on investments. For both segments, Corporate EBITDA provides a relevant profitability metric for use in comparison of our performance against our public peers, many of whom publicly disclose a comparable metric. In addition, we believe that investors, analysts and rating agencies consider EBITDA and Corporate EBITDA useful in measuring our ability to meet our debt service obligations and make capital expenditures. Several of Hertz's material debt covenants are based on financial ratios utilizing Corporate EBITDA and non-compliance with those covenants could result in the requirement to immediately repay all amounts outstanding under those agreements, which could have a material adverse effect on our results of operations, financial position and cash flows.

EBITDA and Corporate EBITDA are not recognized measurements under GAAP. When evaluating our operating performance or liquidity, investors should not consider EBITDA and Corporate EBITDA in isolation of, or as a substitute for, measures of our financial performance and liquidity as determined in accordance with GAAP, such as net income, operating income or net cash provided by operating activities. EBITDA and Corporate EBITDA may have material limitations as performance measures because they exclude items that are necessary elements of our costs and operations. Because other companies may calculate EBITDA and Corporate EBITDA differently than we do, EBITDA may not be, and Corporate EBITDA as presented is not, comparable to similarly titled measures reported by other companies.

Borrowings under Hertz's senior credit facilities are a key source of our liquidity. Hertz's ability to borrow under these senior credit facilities depends upon, among other things, the maintenance of a sufficient borrowing base and compliance with the financial ratio covenants based on Corporate EBITDA set forth in the credit agreements for Hertz's senior credit facilities. Hertz's senior term loan facility requires the maintenance of a specified consolidated leverage ratio and a consolidated interest expense coverage ratio based on Corporate EBITDA, while its senior asset-based loan facility requires that a specified consolidated leverage ratio and consolidated fixed charge coverage ratio be maintained for periods during which there is less than $200 million of available borrowing capacity under the senior asset-based loan facility. These financial covenants became applicable to Hertz beginning September 30, 2006, reflecting the four quarter period ending thereon. Failure to comply with these financial ratio covenants would result in a default under the credit agreements for Hertz's senior credit facilities and, absent a waiver or an amendment from the lenders, permit the acceleration of all outstanding borrowings under the senior credit facilities. As of September 30, 2009, we performed the calculations associated with the above noted financial covenants and determined that Hertz is in compliance with such covenants.

2. Adjusted Pre-Tax Income and Profit Retention

Adjusted pre-tax income is calculated as income before income taxes and noncontrolling interest plus non-cash purchase accounting charges, non-cash debt charges relating to the amortization of debt financing costs and debt discounts and certain one-time charges and non-operational items. Adjusted pre-tax profit retention is calculated as one minus the year over year change in adjusted pre-tax income divided by the year over year change in revenue; see Table 3 for amounts utilized in the calculation. Adjusted pre-tax income is important to management because it allows management to assess operational performance of our business, exclusive of the items mentioned above. It also allows management to assess the performance of the entire business on the same basis as the segment measure of profitability. Management believes that it is important to investors for the same reasons it is important to management and because it allows them to assess the operational performance of the Company on the same basis that management uses internally.

3. Adjusted Net Income

Adjusted net income is calculated as adjusted pre-tax income less a provision for income taxes derived utilizing a normalized income tax rate (34% in 2009 and 2008) and noncontrolling interest. The normalized income tax rate is management's estimate of our long-term tax rate. Adjusted net income is important to management and investors because it represents our operational performance exclusive of the effects of purchase accounting, non-cash debt charges, one-time charges and items that are not operational in nature or comparable to those of our competitors.

4. Adjusted Diluted Earnings Per Share

Adjusted diluted earnings per share is calculated as adjusted net income divided by, for 2009, 407.7 million which represents the actual diluted weighted average number of shares outstanding for the year ended December 31, 2008 plus 85 million shares offered in the 2009 common stock offerings and for 2008, the actual diluted weighted average number of shares outstanding for the year ended December 31, 2007 of 325.5 million. Adjusted diluted earnings per share is important to management and investors because it represents a measure of our operational performance exclusive of the effects of purchase accounting adjustments, non-cash debt charges, one-time charges and items that are not operational in nature or comparable to those of our competitors.

5. Transaction Days

Transaction days represent the total number of days that vehicles were on rent in a given period.

6. Car Rental Rate Revenue, Rental Rate Revenue Per Transaction Day and Rental Rate Revenue Per Transaction

Car rental rate revenue consists of all revenue, net of discounts, associated with the rental of cars including charges for optional insurance products, but excluding revenue derived from fueling and concession and other expense pass-throughs, NeverLost units in the U.S. and certain ancillary revenue. Rental rate revenue per transaction day is calculated as total rental rate revenue, divided by the total number of transaction days, with all periods adjusted to eliminate the effect of fluctuations in foreign currency. Rental rate revenue per transaction is calculated as total rental rate revenue, divided by the total number of transactions, with all periods adjusted to eliminate the effects of fluctuations in foreign currency. Our management believes eliminating the effect of fluctuations in foreign currency is appropriate so as not to affect the comparability of underlying trends. These statistics are important to management and investors as they represents the best measurements of the changes in underlying pricing in the car rental business and encompasses the elements in car rental pricing that management has the ability to control. The optional insurance products are packaged within certain negotiated corporate, government and membership programs and within certain retail rates being charged. Based upon these existing programs and rate packages, management believes that these optional insurance products should be consistently included in the daily pricing of car rental transactions. On the other hand, non-rental rate revenue items such as refueling and concession pass-through expense items are driven by factors beyond the control of management (i.e. the price of fuel and the concession fees charged by airports). Additionally, NeverLost units are an optional revenue product which management does not consider to be part of their daily pricing of car rental transactions.

7. Equipment Rental and Rental Related Revenue

Equipment rental and rental related revenue consists of all revenue, net of discounts, associated with the rental of equipment including charges for delivery, loss damage waivers and fueling, but excluding revenue arising from the sale of equipment, parts and supplies and certain other ancillary revenue. Rental and rental related revenue is adjusted in all periods to eliminate the effect of fluctuations in foreign currency. Our management believes eliminating the effect of fluctuations in foreign currency is appropriate so as not to affect the comparability of underlying trends. This statistic is important to our management and to investors as it is utilized in the measurement of rental revenue generated per dollar invested in fleet on an annualized basis and is comparable with the reporting of other industry participants.

8. Same Store Revenue Growth

Same store revenue growth represents the change in the current period total same store revenue over the prior period total same store revenue as a percentage of the prior period. The same store revenue amounts are adjusted in all periods to eliminate the effect of fluctuations in foreign currency. Our management believes eliminating the effect of fluctuations in foreign currency is appropriate so as not to affect the comparability of underlying trends.

9. Unlevered Pre-Tax Cash Flow

Unlevered pre-tax cash flow is calculated as Corporate EBITDA less equipment rental fleet depreciation including gain (loss) on sale, non-fleet capital expenditures, net of non-fleet disposals, plus changes in working capital (accounts receivable, inventories, prepaid expenses, accounts payable and accrued liabilities), and changes in other assets and liabilities (including public liability and property damage, U.S. pension liability, other assets and liabilities, equity and noncontrolling interest). Unlevered pre-tax cash flow is important to management and investors as it represents funds available to pay corporate interest and taxes and to grow our fleet or reduce debt.

10. Levered After-Tax Cash Flow Before Fleet Growth

Levered after-tax cash flow before fleet growth is calculated as Unlevered Pre-Tax Cash Flow less corporate net cash interest and corporate cash taxes. Levered after-tax cash flow before fleet growth is important to management and investors as it represents the funds available to grow our fleet or reduce our debt.

11. Corporate Net Cash Interest (used in the calculation of Levered After-Tax Cash Flow Before Fleet Growth)

Corporate net cash interest represents total interest expense, net of total interest income, less car rental fleet interest expense, net of car rental fleet interest income, and non-cash corporate interest charges. Non-cash corporate interest charges represent the amortization of corporate debt financing costs and corporate debt discounts. Corporate net cash interest helps management and investors measure the ongoing costs of financing the business exclusive of the costs associated with the fleet financing.

12. Corporate Cash Taxes (used in the calculation of Levered After-Tax Cash Flow Before Fleet Growth)

Corporate cash taxes represents cash paid by the Company during the period for income taxes.

13. Levered After-Tax Cash Flow After Fleet Growth

Levered after-tax cash flow after fleet growth is calculated as Levered After-Tax Cash Flow Before Fleet Growth less equipment rental fleet growth capital expenditures and less gross car rental fleet growth capital expenditures plus car rental fleet financing. Levered after-tax cash flow after fleet growth is important to management and investors as it represents the funds available for the reduction of corporate debt.

14. Net Corporate Debt

Net corporate debt is calculated as total debt excluding fleet debt less cash and equivalents and corporate restricted cash. Corporate debt consists of senior notes issued prior to the acquisition of all of Hertz's common stock on December 21, 2005; borrowings under our Senior Term Facility; borrowings under our Senior ABL Facility; our Senior Notes; our Senior Subordinated Notes; our 5.25% Convertible Senior Notes and certain other indebtedness of our domestic and foreign subsidiaries. Net Corporate Debt is important to management, investors and ratings agencies as it helps measure our leverage. Net Corporate Debt also assists in the evaluation of our ability to service our non-fleet-related debt without reference to the expense associated with the fleet debt, which is fully collateralized by assets not available to lenders under the non-fleet debt facilities.

15. Corporate Restricted Cash (used in the calculation of Net Corporate Debt)

Total restricted cash includes cash and equivalents that are not readily available for our normal disbursements. Total restricted cash and equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet Debt facilities, our like-kind exchange programs and to satisfy certain of our self insurance regulatory reserve requirements. Corporate restricted cash is calculated as total restricted cash less restricted cash associated with fleet debt.

16. Net Fleet Debt

Net fleet debt is calculated as total fleet debt less restricted cash associated with fleet debt. Fleet debt consists of our U.S. ABS Fleet Debt, the Fleet Financing Facility, obligations incurred under our International Fleet Debt Facilities, Capital Leases relating to revenue earning equipment that are outside the International Fleet Debt Facilities, the International ABS Fleet Financing Facility, the Belgian Fleet Financing Facility, the Brazilian Fleet Financing Facility, the Canadian Fleet Financing Facility and the pre-Acquisition ABS Notes. This measure is important to management, investors and ratings agencies as it helps measure our leverage.

17. Restricted Cash Associated with Fleet Debt (used in the calculation of Net Fleet Debt and Corporate Restricted Cash)

Restricted cash associated with fleet debt is restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet Debt facilities and our car rental like-kind exchange program.

18. Total Net Debt

Total net debt is calculated as net corporate debt plus net fleet debt. This measure is important to management, investors and ratings agencies as it helps measure our leverage.

19. Total Net Cash Flow

Total net cash flow is calculated as the change in the debt balances less the change in cash and equivalents and restricted cash, adjusted for the effects of foreign currency. Total net cash flow is important to management, investors and rating agencies as it represents funds available to grow our fleet or reduce our debt.

20. Total Net Cash Flow Yield

Total net cash flow yield is calculated as total net cash flow divided by the pro forma diluted number of shares outstanding during the period (407.7 million in 2009 and 325.5 million in 2008) as a percentage of the average stock price for the period ($6.43 for the twelve months ended September 30, 2009 and $13.35 for the twelve months ended September 30, 2008). Total net cash flow yield is important to management, investors and ratings agencies as it represents the relative movements between total net cash flow and our stock price.