SOURCE: The Hertz Corporation

May 09, 2008 14:00 ET

Hertz Expands IBM Relationship to Provide Information Technology Services and Support

Key Component of Strategic Initiative to Transform Business Model

PARK RIDGE, NJ--(Marketwire - May 9, 2008) - The Hertz Corporation (NYSE: HTZ) has expanded its relationship with IBM (NYSE: IBM), signing a five-year contract for global information technology to support Hertz's overall reengineering and efficiency improvement efforts.

"Hertz has been reengineering its business over the past year with the aim of becoming the lowest cost, highest quality, and most customer-focused company in the markets we serve," said Mark P. Frissora, Chairman and Chief Executive Officer of The Hertz Corporation. "We continue to select service providers who will enable the Company to drive efficiencies as well as quality and service improvements worldwide."

"Hertz and IBM have a long standing, successful business partnership," added Hertz Senior Vice President and Chief Information Officer, Joseph Eckroth. "By expanding our relationship with IBM to encompass global services, we'll be able to adapt greater efficiencies throughout the organization through IBM's industry standards for development, deployment and service management processes."

Under the contract, IBM will expand its services to provide application maintenance and development services and management for the Company's rent a car technology systems, support and operations for mid-range hardware and software and will establish operations for a global help desk for internal Hertz support. In addition, IBM will continue to provide Hertz with application maintenance and development services for the Company's equipment rental and claims management divisions and will continue to provide technical support and operations of the IBM mainframe system.

"We chose to extend our agreement with IBM as its industry expertise, global delivery capabilities and secure, energy efficient data centers will enable Hertz to improve IT performance while reducing associated costs," continued Eckroth. "Partnering with IBM enables us to focus on strengthening our core competency of developing innovative solutions for the business while still delivering best-in-class technology services that increase the flexibility of Hertz's information technology environment."

In order to help Hertz achieve its technology goals, IBM will support the Company's global technology operations currently located in Oklahoma City, supporting global applications, including North America and European counter systems, global financial systems, and global reservation systems. IBM will support Hertz through its global delivery centers and will operate in the Hertz Technology Centers in Oklahoma City.

"We are working closely with Hertz to find new ways to use IBM's technology and industry know-how to strengthen the IT systems that support its business," said Bob Zapfel, IBM general manager, IT Delivery. "IBM's strong record of delivery excellence for Hertz has allowed them to reduce operational costs and increase productivity while focusing on their core business and customers."

The agreement was signed in the first quarter of 2008.

About the Hertz Corporation

The Hertz Corporation is the world's largest general use car rental brand, operating from approximately 8,000 locations in 147 countries worldwide. Hertz is the number one airport car rental brand in the U.S. and at 69 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. 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 through more than 360 branches in the United States, Canada, France and Spain.

About IBM

For more information, visit www.ibm.com/services.

Contact Information