SOURCE: The Hertz Corporation

The Hertz Corporation

February 23, 2009 19:31 ET

Hertz Reports Fourth Quarter and Full Year Operating Results

PARK RIDGE, NJ--(Marketwire - February 23, 2009) - Hertz Global Holdings, Inc. (NYSE: HTZ)

--  Revenues of $1.8 billion with an adjusted net loss of $73.0 million,
    or $(0.22) per share, and a net loss, on a GAAP basis, of $1,214.2
    million or $(3.76) per share for the fourth quarter 2008. The net loss
    includes a non-cash intangible asset charge of $985.2 million.
--  Revenues of $8.5 billion with adjusted net income of $135.7 million,
    or $0.42 per share, and a net loss, on a GAAP basis, of $1,203 million
    or $(3.73) per share for the full year 2008.
--  Total net cash flow(1) improved to $1.8 billion for the fourth
    quarter, resulting in a reduction of total debt of $1.9 billion;
    net cash provided by operating activities of $520.7 million for the
    fourth quarter.
--  Liquidity increased to approximately $4.8 billion(2) as of December
    31, 2008.

Hertz Global Holdings, Inc. (NYSE: HTZ) (with its subsidiaries, the "Company" or "we") reported fourth quarter 2008 worldwide revenues of $1.8 billion, a decrease of 16.4%, or $350 million, year-over-year (a 12.2% decrease in constant currency). Worldwide car rental revenues for the quarter decreased 15.2% (an 11.0% decrease in constant currency) to $1.4 billion. Revenues from worldwide equipment rental for the fourth quarter were $370.7 million, down 20.8% (a 16.7% decrease in constant currency) over the prior year period.

Fourth quarter 2008 adjusted pre-tax loss(3) was $103.7 million, versus adjusted pre-tax income of $152.5 million in 2007, and loss before income taxes and minority interest ("pre-tax loss"), on a GAAP basis, was $1,446.2 million, versus $81.3 million of pre-tax income in the fourth quarter of 2007. Corporate EBITDA(4) for the fourth quarter of 2008 was $116.9 million, a decrease of 69.7% from the same period in 2007. The Company conducted its annual goodwill and other intangible asset review during the fourth quarter of 2008, resulting in a non-cash intangible asset impairment charge of $985.2 million, after taxes, in the fourth quarter. This charge does not affect normal business operations or compliance with any of the Company's financial covenants.

Fourth quarter 2008 adjusted net loss(5) was $73.0 million, versus adjusted net income of $93.9 million from the same period in 2007, resulting in adjusted diluted loss per share(3) for the quarter of $(0.22), compared with adjusted diluted earnings per share of $0.29 for the fourth quarter of 2007. Fourth quarter 2008 net loss, on a GAAP basis, was $1,214.2 million, or $(3.76) per share on a diluted basis, compared with net income of $80.7 million, or $0.25 per share on a diluted basis, for the fourth quarter of 2007. The decline in GAAP net income is attributable primarily to the non-cash intangible asset impairment charge taken in the fourth quarter of 2008, decreased volume and pricing, increased restructuring and related costs and residual value declines.

Mark P. Frissora, the Company's Chairman and Chief Executive Officer, said, "Hertz experienced unprecedented volume, pricing and residual value contraction across all of its businesses in the fourth quarter of 2008. Nevertheless, we generated almost $117 million of Corporate EBITDA. Although there was an adjusted pre-tax loss for the quarter, we made significant progress towards achieving our objective of right-sizing the business to economic conditions. Due in part to our comprehensive, two-year efficiency program, Hertz achieved adjusted pre-tax income for the full year of almost $240 million. Additionally, for the fourth quarter, we generated improved total net cash flow of $1.8 billion, reducing total debt by $1.9 billion, and improved liquidity at year-end to approximately $4.8 billion(2). We are committed to further mitigating the impact of continued revenue declines on our profits, including a goal to eliminate an additional $350 million of costs in 2009, and generating positive total net cash flow throughout the current global recession," he added.

The Company took $94.3 million in restructuring and related charges in the fourth quarter, primarily attributable to costs associated with job reductions, the closure of rental locations and outsourcing/process reengineering.

INCOME MEASUREMENTS, FOURTH QUARTER 2008 & 2007

                            Q4 2008                        Q4 2007
                 ------------------------------  --------------------------
                                       Diluted                     Diluted
(in millions,                           Loss                       Earnings
 except per       Pre-tax      Net      Per      Pre-tax    Net      Per
 share amounts)    Loss       Loss      Share     Income   Income   Share
                 ---------  ---------  --------  -------  -------  --------
Earnings
 Measures, as
 reported (EPS
 based on
 323.0M and
 326.2M diluted
 shares)         $(1,446.2) $(1,214.2) $  (3.76) $  81.3  $  80.7  $   0.25
                            =========  ========           =======  ========
Adjustments:
  Purchase
   accounting         26.6                          26.2
  Non-cash debt
   charges            43.8                          18.6
  Restructuring
   and related
   charges            94.3                          31.0
  Impairment
   charge          1,168.9                             -
  Loss (gain)
   on derivatives      5.0                          (0.9)
  Management
   transition
   costs               3.9                           4.0
  Vacation
   accrual
   adjustment            -                          (7.7)
                 ---------                       -------
Adjusted pre-tax
 income (loss)      (103.7)    (103.7)             152.5    152.5
Assumed
 (provision)
 benefit for
 income taxes at
 34% and 35%                     35.3                       (53.3)
Minority
 interest                        (4.6)                       (5.3)
                 ---------  ---------            -------  -------
Earnings
 Measures, as
 adjusted (EPS
 based on 325.5M
 and 324.8M
 diluted shares) $  (103.7) $   (73.0) $  (0.22) $ 152.5  $  93.9  $   0.29
                 =========  =========  ========  =======  =======  ========

The Company ended the fourth quarter of 2008 with total debt of $10.97 billion and net corporate debt(1) of $3.82 billion, compared with total debt of $12.84 billion and net corporate debt of $4.25 billion as of September 30, 2008, a reduction in net corporate debt of $430.5 million. Levered cash flow(1) for the quarter was $430.5 million, compared with $586.8 million in the fourth quarter of 2007. The change in levered cash flow is attributable to lower earnings, partially offset by reduced equipment rental fleet investment. On a GAAP basis, net cash provided by operating activities was $520.7 million in the fourth quarter of 2008, compared to $881.0 million in 2007.

The Company generated total net cash flow yield(1) of approximately 19%, based on the Company's $593 million of total net cash flow, for the 12 months ending December 31, 2008, compared with total net cash flow yield of approximately 12%, based on the Company's $848 million of total net cash flow, for the 12 months ending December 31, 2007.

WORLDWIDE CAR RENTAL

Worldwide car rental revenues were $1.4 billion for the fourth quarter of 2008, a decrease of 15.2% (an 11.0% decrease in constant currency) from the prior year period. Transaction days for the quarter decreased 6.9% [(8.7)% U.S.; (3.0)% International]. U.S. off-airport revenues for the fourth quarter decreased 5.8% year-over-year, and transaction days declined 4.5%. Rental rate revenue per transaction day(1) ("RPD") for the quarter was 4.7% below the prior year period [(5.2)% U.S.; (4.3)% International].

Worldwide car rental adjusted pre-tax loss for the fourth quarter of 2008 was $66.7 million, compared with adjusted pre-tax income of $124.1 million last year. The decrease is attributable to decreased volume and pricing, residual value declines, and inflation in key areas including vehicle repair and maintenance, partially offset by strong cost management performance.

The worldwide average number of Company-operated cars for the fourth quarter of 2008 was 417,500, a decrease of 6.0% over the prior year period.

WORLDWIDE EQUIPMENT RENTAL

Worldwide equipment rental revenues were $370.7 million for the fourth quarter of 2008, a 20.8% decrease (a 16.7% decrease in constant currency) from the prior year period. HERC continued to achieve volume growth in Canada, especially in Western Canada, where oil industry-related rental activity remains relatively robust although the rate of growth has slowed. Also, HERC continues to improve diversification into industrial and fragmented sectors of the U.S. equipment rental market.

Adjusted pre-tax income for the fourth quarter of 2008 was $46.0 million, a 55.0% decrease over the prior year period, primarily attributable to the effects of reduced volume growth and pricing, partially offset by cost management initiatives. HERC achieved an adjusted pre-tax margin, based on revenues, of 12.4%, and a Corporate EBITDA margin, based on revenues, of 42.5% for the quarter.

The average acquisition cost of rental equipment operated during the fourth quarter of 2008 decreased by 11.0% year-over-year -- compared with an 11.2% increase in the fourth quarter of 2007 over the fourth quarter of 2006 -- to $3.1 billion, and net revenue earning equipment as of December 31, 2008 was $2.2 billion, an 18.8% decrease from the amount as of December 31, 2007.

FULL YEAR RESULTS

Worldwide revenues for the full year 2008 were $8.53 billion, a decrease of 1.8% over the prior year (a 3.5% decrease in constant currency). Worldwide car rental revenues for the year decreased 0.9% to $6.86 billion. Revenues from worldwide equipment rental for the year were $1.66 billion, down 5.6% over the prior year.

Adjusted pre-tax income for the year was $237.2 million, a 64.1% decrease from 2007 and pre-tax loss, on a GAAP basis, was $1,382.8 million, versus $386.8 million of pre-tax income in 2007. Corporate EBITDA for the year was $1.10 billion, a decrease of 28.6% from 2007.

Adjusted net income was $135.7 million, a 66.9% decrease from 2007, resulting in adjusted diluted earnings per share for the year of $0.42, compared with $1.26 in the prior year period, with net loss, on a GAAP basis, for the year, of $1,203.0 million, or $(3.73) per share on a diluted basis, compared with net income of $264.5 million, or $0.81 per share on a diluted basis, in the prior year period. The decline in GAAP net income is attributable primarily to the non-cash intangible asset impairment charge taken in the fourth quarter of 2008 decreased volume and pricing, increased restructuring and related costs and residual value declines.

INCOME MEASUREMENTS, FULL YEAR 2008 & 2007



                       Full Year 2008                   Full Year 2007
                -------------------------------  --------------------------
                                       Diluted                     Diluted
(in millions,    Pre-tax      Net     Earnings                     Earnings
 except per       Income     Income     (Loss)   Pre-tax    Net      Per
 share amounts)   (Loss)     (Loss)   Per Share  Income   Income    Share
                ---------  ---------  ---------  -------  -------  --------
Earnings
 Measures, as
 reported
 (EPS based on
 322.7M and
 325.5M diluted
 shares)        $(1,382.8) $(1,203.0) $   (3.73) $ 386.8  $ 264.5  $   0.81
                           =========  =========           =======  ========
Adjustments:
   Purchase
    accounting      101.0                           95.2
   Non-cash
    debt
    charges         100.2                          105.9
   Restructuring
    and
    related
    charges         242.5                           96.4
   Impairment
    charge        1,168.9                              -
   Loss (gain)
    on
    derivatives       2.2                           (4.1)
   Management
    transition
    costs             5.2                           15.0
   Vacation
    accrual
    adjustment          -                          (36.5)
   Secondary
    offering
    costs               -                            2.0
                ---------                        -------
Adjusted
 pre-tax income     237.2      237.2               660.7    660.7
Assumed
 provision for
 income taxes
 at 34% and 35%                (80.7)                      (231.2)
Minority
 interest                      (20.8)                       (19.7)
                ---------  ---------             -------  -------
Earnings
 Measures, as
 adjusted
 (EPS based on
 325.5M and
 324.8M diluted
 shares)        $   237.2  $   135.7  $    0.42  $ 660.7  $ 409.8  $   1.26
                =========  =========  =========  =======  =======  ========

The Company ended 2008 with net corporate debt of $3.82 billion, compared with $3.98 billion as of December 31, 2007, a reduction in net corporate debt of $167.7 million. Levered cash flow for the year was $167.7 million, compared with $552.6 million in 2007. The change in levered cash flow is attributable to lower earnings, partially offset by lower equipment rental fleet investment. On a GAAP basis, net cash provided by operating activities was $2.1 billion for the year, compared to $3.1 billion in 2007.

OUTLOOK

Due to continued volatility in car and equipment rental markets, with volume, pricing and residual value declines attributable to the global recession, the Company remains unable to provide specific quarterly or full year 2009 revenue, earnings and cash flow guidance.

RESULTS OF THE HERTZ CORPORATION

The Company's operating subsidiary, The Hertz Corporation ("Hertz"), posted the same revenues for the fourth quarter and full year 2008 as the Company. Hertz's fourth quarter and full year 2008 pre-tax loss was, however, slightly higher than that of the Company primarily because of additional interest expense recognized by Hertz on an inter-company loan from the Company.

(1) Total net cash flow, total net cash flow yield, net corporate debt, levered after-tax cash flow after fleet growth ("levered cash flow") and rental rate revenue per transaction day are non-GAAP measures. See the accompanying reconciliations. Total net cash flow yield is calculated as total net cash flow (see Table 9 of Attachments) divided by the pro forma diluted number of shares outstanding (325.5 million in 2008 and 324.8 million in 2007) as a percentage of the average stock price for the period ($9.52 for the year ended December 31, 2008 and $21.39 for the year ended December 31, 2007).

(2) Total liquidity of $4.8 billion is comprised of $0.6 billion of cash, $1.3 billion of unfunded corporate liquidity and $2.9 billion of fleet financing availability. Total liquidity is subject to borrowing base limitations and other factors -- we had $1.5 billion of the borrowing base available at December 31, 2008 and $0.6 billion of cash.

(3) Adjusted pre-tax income (loss), a non-GAAP measure of profitability, represents pre-tax income (loss) plus non-cash purchase accounting charges, non-cash debt charges relating to the amortization and write-off of debt financing costs and debt discounts and certain other one-time or non-operational items. See the accompanying reconciliations.

(4) Corporate EBITDA, a non-GAAP measure of profitability and liquidity, consists of earnings before net interest expense (other than interest expense relating to certain car rental fleet financing), income taxes, depreciation (other than depreciation related to the car rental fleet), amortization and certain other items specified in the credit agreements governing the Company's credit facilities. See the accompanying reconciliations.

(5) Adjusted net income (loss), a non-GAAP measure of profitability, represents the adjusted pre-tax income (loss) amount less a provision for income taxes derived utilizing a normalized income tax rate (34% in 2008 and 35% in 2007) and minority interest. Adjusted diluted earnings (loss) per share, a non-GAAP measure of profitability, is calculated as adjusted net income (loss) divided by the pro forma diluted number of shares outstanding (325.5 million in 2008 and 324.8 million in 2007). See the accompanying reconciliations.

CONFERENCE CALL INFORMATION

The Company's fourth quarter 2008 earnings conference call will be held on Tuesday, February 24, 2009, at 10:00 a.m. (EST). To access the conference call live, dial 1-800-288-9626 in the U.S. and 1-612-332-0530 for international callers using the passcode: 985183 or listen via webcast at www.hertz.com/investorrelations. The conference call will be available for replay through March 10, 2009 by calling 1-800-475-6701 in the U.S. or 1-320-365-3844 for international callers with the passcode: 985183. 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, the world's largest general use car rental brand, operates from approximately 8,100 locations in 144 countries worldwide. Hertz is the number one airport car rental brand in the United States 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 through approximately 345 branches in the United States, Canada, France, Spain and China.

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; 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 2007 Annual Report on Form 10-K for the fiscal year ended December 31, 2007, as filed with the United States Securities and Exchange Commission, or the "SEC," on February 29, 2008, and its Quarterly Report on Form 10-Q for the three months ended September 30, 2008, as filed with the SEC on November 7, 2008, 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
          Months and Year Ended December 31, 2008 and 2007
Table 2:  Condensed Consolidated Statements of Operations As Reported and
          As Adjusted for the Three Months and Year Ended December 31,
          2008 and 2007
Table 3:  Segment and Other Information for the Three Months and Year
          Ended December 31, 2008 and 2007
Table 4:  Selected Operating and Financial Data as of or for the Three
          Months and Year Ended December 31, 2008 compared to the prior
          year period or December 31, 2007
Table 5:  Non-GAAP Reconciliations of Adjusted Pre-Tax Income (Loss) and
          Adjusted Net Income (Loss) for the Three Months and Year Ended
          December 31, 2008 and 2007
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 Months and Year Ended December 31, 2008 and 2007
Table 7:  Non-GAAP Reconciliations of Adjusted Pre-Tax Income (Loss) to
          Corporate EBITDA for the Three Months and Year Ended December
          31, 2008 and 2007
Table 8:  Non-GAAP Reconciliations of Operating Cash Flows to EBITDA for
          the Three Months and Year Ended December 31, 2008 and 2007, Net
          Corporate Debt and Net Fleet Debt as of December 31, 2008, 2007
          and 2006 and September 30, 2008 and 2007, Car Rental Rate
          Revenue per Transaction Day and Equipment Rental and Rental
          Related Revenue for the Three Months and Year Ended December
          31, 2008 and 2007
Table 9:  Non-GAAP Reconciliation of Total Net Cash Flow for the Three
          Months and Year Ended December 31, 2008 and 2007




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


                                  Three Months Ended     As a Percent of
                                     December 31,         Total Revenues
                                -----------------------  ----------------
                                    2008        2007       2008     2007
                                ------------  ---------  -------  -------
Total revenues                  $    1,788.7  $ 2,138.8    100.0%   100.0%
                                ------------  ---------  -------  -------

Expenses:
  Direct operating                   1,128.2    1,149.0     63.1%    53.7%
  Depreciation of revenue
   earning equipment                   535.4      504.5     29.9%    23.6%
  Selling, general and
   administrative                      173.9      189.9      9.7%     8.9%
  Interest, net of interest
   income                              228.5      214.1     12.8%    10.0%
  Goodwill and other
   intangible asset impairment       1,168.9          -     65.3%       -%
                                ------------  ---------  -------  -------
Total expenses                       3,234.9    2,057.5    180.8%    96.2%
                                ------------  ---------  -------  -------
Income (loss) before income
 taxes and minority interest        (1,446.2)      81.3   (80.8)%     3.8%
Benefit for taxes on income            236.6        4.7     13.2%     0.2%
Minority interest                       (4.6)      (5.3)   (0.3)%    (0.2)%
                                ------------  ---------  -------  -------
Net income (loss)               $   (1,214.2) $    80.7   (67.9)%     3.8%
                                ============  =========  =======  =======

Weighted average number of
 shares outstanding:
   Basic                               323.0      321.7
   Diluted                             323.0      326.2

Earnings (loss) per share:
   Basic                        $      (3.76) $    0.25
   Diluted                      $      (3.76) $    0.25



                                      Year Ended         As a Percent of
                                     December 31,         Total Revenues
                                -----------------------  ----------------
                                    2008         2007      2008     2007
                                ------------  ---------  -------  -------
Total revenues                  $    8,525.1  $ 8,685.6    100.0%   100.0%
                                ------------  ---------  -------  -------

Expenses:
   Direct operating                  4,930.0    4,644.1     57.8%    53.4%
   Depreciation of revenue
    earning equipment                2,194.2    2,003.4     25.8%    23.1%
   Selling, general and
    administrative                     769.6      775.9      9.0%     8.9%
   Interest, net of interest
    income                             845.2      875.4      9.9%    10.1%
   Goodwill and other intangible
    asset impairment                 1,168.9          -     13.7%       -%
                                ------------  ---------  -------  -------
Total expenses                       9,907.9    8,298.8    116.2%    95.5%
                                ------------  ---------  -------  -------
Income (loss) before income
 taxes and minority interest        (1,382.8)     386.8   (16.2)%     4.5%
(Provision) benefit for
 taxes on income                       200.6     (102.6)     2.4%   (1.2)%
Minority interest                      (20.8)     (19.7)   (0.2)%    (0.2)%
                                ------------  ---------  -------  -------
Net income (loss)               $   (1,203.0) $   264.5   (14.0)%     3.1%
                                ============  =========  =======  =======

Weighted average number of
 shares outstanding:
   Basic                               322.7      321.2
   Diluted                             322.7      325.5

Earnings (loss) per share:
   Basic                        $      (3.73) $    0.82
   Diluted                      $      (3.73) $    0.81




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


                                     Three Months Ended December 31, 2008
                                   ---------------------------------------
                                        As                          As
                                     Reported    Adjustments     Adjusted
                                   -----------   -----------     ---------
Total revenues                     $   1,788.7   $         -     $ 1,788.7
                                   -----------   -----------     ---------

Expenses:
   Direct operating                    1,128.2        (106.6)(a)   1,021.6
   Depreciation of revenue
    earning equipment                    535.4          (6.9)(b)     528.5
   Selling, general and
    administrative                       173.9         (16.3)(c)     157.6
   Interest, net of interest
    income                               228.5         (43.8)(d)     184.7
   Goodwill and other intangible
    asset impairment                   1,168.9      (1,168.9)(e)         -
                                   -----------   -----------     ---------
Total expenses                         3,234.9      (1,342.5)      1,892.4
                                   -----------   -----------     ---------
Income (loss) before income taxes
 and minority interest                (1,446.2)      1,342.5        (103.7)
(Provision) benefit for taxes on
 income                                  236.6(f)     (201.3)(g)      35.3
Minority interest                         (4.6)            -          (4.6)
                                   -----------   -----------     ---------
Net income (loss)                  $  (1,214.2)  $   1,141.2     $   (73.0)
                                   ===========   ===========     =========



                                     Three Months Ended December 31, 2007
                                   ---------------------------------------
                                        As                          As
                                     Reported    Adjustments     Adjusted
                                   -----------   -----------     ---------
Total revenues                     $   2,138.8   $         -     $ 2,138.8
                                   -----------   -----------     ---------

Expenses:
   Direct operating                    1,149.0         (22.9)(a)   1,126.1
   Depreciation of revenue
    earning equipment                    504.5          (6.6)(b)     497.9
   Selling, general and
    administrative                       189.9         (23.1)(c)     166.8
   Interest, net of interest
    income                               214.1         (18.6)(d)     195.5
                                   -----------   -----------     ---------
Total expenses                         2,057.5         (71.2)      1,986.3
                                   -----------   -----------     ---------
Income before income taxes
 and minority interest                    81.3          71.2         152.5
(Provision) benefit for taxes on
 income                                    4.7(f)      (58.0)(g)     (53.3)
Minority interest                         (5.3)            -          (5.3)
                                   -----------  ------------     ---------
Net income                         $      80.7  $       13.2     $    93.9
                                   ===========  ============     =========



                                          Year Ended December 31, 2008
                                   ---------------------------------------
                                        As                          As
                                     Reported    Adjustments     Adjusted
                                   -----------   -----------     ---------
Total revenues                     $   8,525.1   $         -     $ 8,525.1
                                   -----------   -----------     ---------

Expenses:
   Direct operating                    4,930.0        (263.5)(a)   4,666.5
   Depreciation of revenue
    earning equipment                  2,194.2         (22.6)(b)   2,171.6
   Selling, general and
    administrative                       769.6         (64.8)(c)     704.8
   Interest, net of interest
    income                               845.2        (100.2)(d)     745.0
   Goodwill and other intangible
    asset impairment                   1,168.9      (1,168.9)(e)         -
                                   -----------   -----------     ---------
Total expenses                         9,907.9      (1,620.0)      8,287.9
                                   -----------   -----------     ---------
Income (loss) before income taxes
 and minority interest                (1,382.8)      1,620.0         237.2
(Provision) benefit for taxes on
 income                                  200.6(f)     (281.3)(g)     (80.7)
Minority interest                        (20.8)            -         (20.8)
                                   -----------   -----------     ---------
Net income (loss)                  $  (1,203.0)  $   1,338.7     $   135.7
                                   ===========   ===========     =========



                                          Year Ended December 31, 2007
                                   ---------------------------------------
                                        As                          As
                                     Reported    Adjustments     Adjusted
                                   -----------   -----------     ---------
Total revenues                     $   8,685.6   $         -     $ 8,685.6
                                   -----------   -----------     ---------

Expenses:
   Direct operating                    4,644.1         (85.0)(a)   4,559.1
   Depreciation of revenue
    earning equipment                  2,003.4         (19.6)(b)   1,983.8
   Selling, general and
    administrative                       775.9         (63.4)(c)     712.5
   Interest, net of interest
    income                               875.4        (105.9)(d)     769.5
                                   -----------   -----------     ---------
Total expenses                         8,298.8        (273.9)      8,024.9
                                   -----------   -----------     ---------
Income before income taxes
 and minority interest                   386.8         273.9         660.7
Provision for taxes on income           (102.6)       (128.6)(g)    (231.2)
Minority interest                        (19.7)            -         (19.7)
                                   -----------   -----------     ---------
Net income                         $     264.5   $     145.3     $   409.8
                                   ===========   ===========     =========


(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 December 31, 2008 and 2007, also includes restructuring
     and restructuring related charges of $87.1 million and $10.8 million,
     respectively.  For the years ended December 31, 2008 and 2007, also
     includes restructuring and restructuring related charges of $185.9
     million and $41.2 million, respectively.  For the three months and
     year ended December 31, 2007, also includes vacation accrual
     adjustments of $6.3 million and $29.8 million, respectively.
(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 December
     31, 2008 and 2007, also includes restructuring and restructuring
     related charges of $7.2 million and $20.2 million, respectively.  For
     the years ended December 31, 2008 and 2007, also includes
     restructuring and restructuring related charges of $56.6 million and
     $55.2 million, respectively.  For the three months and year ended
     December 31, 2007, also includes vacation accrual adjustments of $1.4
     million and $6.5 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
     months and year ended December 31, 2008, also includes $4.0 million
     and $11.8 million, respectively, associated with the ineffectiveness
     of our interest rate swaps.  For the three months and year ended
     December 31, 2007, also includes $2.7 million and $20.4 million,
     respectively, associated with the ineffectiveness of our interest
     rate swaps. For the three months and year ended December 31, 2008,
     also includes the write-off of $22.3 million and $30.0 million,
     respectively,  of unamortized debt costs relating to those countries
     who did not participate in the take-out asset-based facilities. For
     the year ended December 31, 2007, also includes the write-off of
     $16.2 million of unamortized debt costs associated with a debt
     modification.  Total adjusted interest, net of interest income, for
     the three months and year ended December 31, 2008, consists of net
     corporate interest of $72.4 million and $267.3 million, respectively,
     and net fleet interest of $112.3 million and $477.7 million,
     respectively, and for the three months and year ended December 31,
     2007, net corporate interest of $66.1 million and $275.3 million,
     respectively, and net fleet interest of $129.4 million and $494.2
     million, respectively.
(e) Represents a non-cash goodwill and other intangible asset impairment
     charge.
(f) For the three months ended December 31, 2007, includes tax benefits
     primarily related to the reduction of statutory tax rates in certain
     jurisdictions.  For the three months and year ended December 31,
     2008, includes valuation allowances for losses in certain non-U.S.
     jurisdictions and the recording of valuation allowances on certain
     U.S. deferred tax assets that management believes may not be realized.
(g) Represents a provision for income taxes derived utilizing a normalized
     income tax rate (34% for 2008 and 35% for 2007).




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



                              Three Months Ended          Year Ended
                                 December 31,            December 31,
                            ----------------------  ----------------------
                               2008        2007        2008        2007
                            ----------  ----------  ----------  ----------
Revenues:
   Car rental               $  1,415.3  $  1,668.4  $  6,858.2  $  6,920.6
   Equipment rental              370.7       468.1     1,658.1     1,755.9
   Other reconciling items         2.7         2.3         8.8         9.1
                            ----------  ----------  ----------  ----------
                            $  1,788.7  $  2,138.8  $  8,525.1  $  8,685.6
                            ==========  ==========  ==========  ==========

Depreciation of property
 and equipment:
   Car rental               $     31.4  $     31.0  $    126.0  $    130.8
   Equipment rental                8.5        10.6        40.8        40.4
   Other reconciling items         1.5         1.1         6.0         5.9
                            ----------  ----------  ----------  ----------
                            $     41.4  $     42.7  $    172.8  $    177.1
                            ==========  ==========  ==========  ==========

Amortization of other
 intangible assets:
   Car rental               $      8.5  $      8.2  $     33.9  $     30.4
   Equipment rental                8.1         7.9        32.4        32.2
                            ----------  ----------  ----------  ----------
                            $     16.6  $     16.1  $     66.3  $     62.6
                            ==========  ==========  ==========  ==========

Income (loss) before income
 taxes and minority
 interest:
   Car rental (a)           $   (594.7) $     89.4  $   (385.3) $    468.6
   Equipment rental (a)         (747.9)       84.3      (629.3)      308.5
   Other reconciling items      (103.6)      (92.4)     (368.2)     (390.3)
                            ----------  ----------  ----------  ----------
                            $ (1,446.2) $     81.3  $ (1,382.8) $    386.8
                            ==========  ==========  ==========  ==========

Corporate EBITDA (b) (c):
   Car rental               $    (36.3) $    154.4  $    402.8  $    737.9
   Equipment rental              157.7       230.3       736.0       834.1
   Other reconciling items        (4.5)        0.5       (38.6)      (30.5)
                            ----------  ----------  ----------  ----------
                            $    116.9  $    385.2  $  1,100.2  $  1,541.5
                            ==========  ==========  ==========  ==========

Adjusted pre-tax income
 (loss) (b) (c):
   Car rental               $    (66.7) $    124.1  $    289.1  $    605.0
   Equipment rental               46.0       102.3       272.0       373.8
   Other reconciling items       (83.0)      (73.9)     (323.9)     (318.1)
                            ----------  ----------  ----------  ----------
                            $   (103.7) $    152.5  $    237.2  $    660.7
                            ==========  ==========  ==========  ==========

Adjusted net income (loss)
 (b) (c):
   Car rental               $    (44.0) $     80.7  $    190.8  $    393.3
   Equipment rental               30.4        66.5       179.5       243.0
   Other reconciling items       (59.4)      (53.3)     (234.6)     (226.5)
                            ----------  ----------  ----------  ----------
                            $    (73.0) $     93.9  $    135.7  $    409.8
                            ==========  ==========  ==========  ==========

Pro forma diluted number
 of shares outstanding (b)       325.5       324.8       325.5       324.8

Adjusted diluted earnings
 (loss) per share (b)       $    (0.22) $     0.29  $     0.42  $     1.26


(a) For the three months and year ended December 31, 2008, includes the
    non-cash goodwill and other intangible asset impairment charges.  See
    Tables 5 through 7.
(b) Represents a non-GAAP measure, see the accompanying reconciliations and
    definitions.
(c) In 2008, the Company has reclassified its 2007 realized and unrealized
    gains/losses on derivatives from "other reconciling items" to "car
    rental."  See Tables 5 through 7.
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 through 7.




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

                       Three
                      Months       Percent        Year         Percent
                     Ended, or     change       Ended, or      change
                        as          from            as          from
                    of Dec. 31,  prior year     of Dec. 31,  prior year
                        2008       period          2008        period
                    -----------  -----------    -----------  -----------

Selected Car Rental Operating Data

Worldwide number of
 transactions (in
 thousands)               6,217        (11.2)%       27,375         (5.5)%
   Domestic               4,453        (13.6)%       19,822         (8.0)%
   International          1,764         (4.7)%        7,553          1.7%

Worldwide
 transaction days
 (in thousands)          28,856         (6.9)%      127,897         (1.1)%
   Domestic              19,348         (8.7)%       85,701         (3.7)%
   International          9,508         (3.0)%       42,196          4.5%

Worldwide rental
 rate revenue
 per transaction
 day (a)            $     43.19         (4.7)%  $     45.04         (2.3)%
   Domestic         $     41.05         (5.2)%  $     42.88         (2.0)%
   International
   (b)              $     47.56         (4.3)%  $     49.45         (3.5)%

Worldwide average
 number of
 company-operated
 cars during
 period                 417,500         (6.0)%      455,200         (1.3)%
   Domestic             275,900         (7.3)%      302,200         (3.6)%
   International        141,600         (3.3)%      153,000          3.5%

Worldwide revenue
 earning equipment,
 net (in millions)  $   6,501.4        (14.6)%  $   6,501.4        (14.6)%

Selected Worldwide Equipment Rental Operating Data

Rental and rental
 related revenue
 (in millions)
 (a)(b)             $     342.0        (18.4)%  $   1,481.8         (7.2)%
Same store revenue
 growth, including
 initiatives (a)(b)       -13.8%         N/M           -5.7%         N/M
Average acquisition
 cost of revenue
 earning equipment
 operated during
 period (in
 millions)          $   3,135.0        (11.0)%  $   3,364.3          1.8%
Revenue earning
 equipment, net
 (in millions)      $   2,190.1        (18.8)%  $   2,190.1        (18.8)%

Other Financial Data (in millions)

Cash flows provided
 by operating
 activities         $     520.7        (40.9)%  $   2,095.5        (32.2)%
Levered after-tax
 cash flow before
 fleet growth (a)         (28.7)         N/M         (273.9)         N/M
Levered after-tax
 cash flow after
 fleet growth (a)         430.5        (26.6)%        167.7        (69.7)%
Total net cash flow
 (a)                    1,767.0          2.2%         593.1        (30.0)%
EBITDA (a)               (628.9)         N/M        1,874.9        (46.2)%
Corporate EBITDA
 (a)                      116.9        (69.7)%      1,100.2        (28.6)%

Selected Balance Sheet Data (in millions)
                      December                    December
                      31, 2008                    31, 2007
                     ----------                 -----------
Cash and
 equivalents        $     594.3                 $     730.2
Total revenue
 earning
 equipment, net         8,691.5                    10,307.9
Total assets           16,451.4                    19,255.7
Total debt             10,972.3                    11,960.1
Net corporate debt
 (a)                    3,817.0                     3,984.7
Net fleet debt (a)      5,829.6                     6,584.2
Total stockholders'
 equity                 1,474.4                     2,913.4


(a) Represents a non-GAAP measure, see the accompanying reconciliations
    and definitions.
(b) Based on 12/31/07 foreign exchange rates.
N/M Percentage change not meaningful.




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


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

                               Three Months Ended December 31, 2008
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                          Rental       Rental        Items        Total
                        -----------  -----------  -----------  -----------
Total revenues:         $   1,415.3  $     370.7  $       2.7  $   1,788.7
                        -----------  -----------  -----------  -----------
Expenses:
  Direct operating and
   selling, general
   and administrative         995.1        279.2         27.8      1,302.1
  Depreciation of
   revenue earning
   equipment                  444.0         91.4            -        535.4
  Interest, net of
   interest income            127.9         22.1         78.5        228.5
  Goodwill and other
   intangible asset
   impairment                 443.0        725.9            -      1,168.9
                        -----------  -----------  -----------  -----------
Total expenses              2,010.0      1,118.6        106.3      3,234.9
                        -----------  -----------  -----------  -----------
Loss before income
 taxes and minority
 interest                    (594.7)      (747.9)      (103.6)    (1,446.2)
Adjustments:
  Purchase accounting
  (a):
    Direct operating
     and selling,
     general and
     administrative             9.7          9.5          0.5         19.7
    Depreciation of
     revenue earning
     equipment                    -          6.9            -          6.9
  Non-cash debt
   charges (b)                 33.2          2.3          8.3         43.8
  Restructuring
   charges (c)                 33.7         48.2          7.1         89.0
  Restructuring
   related charges
   (c)                          3.4          1.1          0.8          5.3
  Goodwill and
   other intangible
   asset impairment           443.0        725.9            -      1,168.9
  Realized loss on
   derivative (d)               5.0            -            -          5.0
  Management
   transition costs
   (d)                            -            -          3.9          3.9
                        -----------  -----------  -----------  -----------
Adjusted pre-tax
 income (loss)                (66.7)        46.0        (83.0)      (103.7)
Assumed (provision)
 benefit for
 income taxes of 34%           22.7        (15.6)        28.2         35.3
Minority interest                 -            -         (4.6)        (4.6)
                        -----------  -----------  -----------  -----------
Adjusted net income
 (loss)                 $     (44.0) $      30.4  $     (59.4) $     (73.0)
                        ===========  ===========  ===========  ===========

Pro forma diluted
 number of shares
 outstanding                                                         325.5

Adjusted diluted loss
 per share                                                     $     (0.22)



                               Three Months Ended December 31, 2007
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                          Rental        Rental       Items        Total
                        -----------  -----------  -----------  -----------
Total revenues:         $   1,668.4  $     468.1  $       2.3  $   2,138.8
                        -----------  -----------  -----------  -----------
Expenses:
  Direct operating and
   selling, general
   and administrative       1,055.1        256.1         27.7      1,338.9
  Depreciation of
   revenue earning
   equipment                  415.7         88.8            -        504.5
  Interest, net of
   interest income            108.2         38.9         67.0        214.1
                        -----------  -----------  -----------  -----------
Total expenses              1,579.0        383.8         94.7      2,057.5
                        -----------  -----------  -----------  -----------
Income (loss) before
 income taxes and
 minority interest             89.4         84.3        (92.4)        81.3
Adjustments:
  Purchase accounting
   (a):
    Direct operating
     and selling,
     general and
     administrative            10.3          8.8          0.5         19.6
    Depreciation of
     revenue earning
     equipment                 (0.1)         6.7            -          6.6
  Non-cash debt
   charges (b)                 12.6          2.9          3.1         18.6
  Restructuring
   charges (c)                 18.2          1.5         11.3         31.0
  Vacation accrual
   adjustment (c)              (5.4)        (1.9)        (0.4)        (7.7)
  Unrealized gain on
   derivative (d)              (0.9)           -            -         (0.9)
  Management transition
   costs (d)                      -            -          4.0          4.0
                        -----------  -----------  -----------  -----------
Adjusted pre-tax income
 (loss)                       124.1        102.3        (73.9)       152.5
Assumed (provision)
 benefit for
 income taxes of 35%          (43.4)       (35.8)        25.9        (53.3)
Minority interest                 -            -         (5.3)        (5.3)
                        -----------  -----------  -----------  -----------
Adjusted net income
 (loss)                 $      80.7  $      66.5  $     (53.3) $      93.9
                        ===========  ===========  ===========  ===========

Pro forma diluted
 number of shares
 outstanding                                                         324.8

Adjusted diluted
 earnings per share                                            $      0.29



                                    Year Ended December 31, 2008
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                          Rental        Rental       Items        Total
                        -----------  -----------  -----------  -----------
Total revenues:         $   6,858.2  $   1,658.1  $       8.8  $   8,525.1
                        -----------  -----------  -----------  -----------
Expenses:
  Direct operating and
   selling, general
   and administrative       4,511.9      1,101.6         86.1      5,699.6
  Depreciation of
   revenue earning
   equipment                1,843.8        350.4            -      2,194.2
  Interest, net of
   interest income            444.8        109.5        290.9        845.2
  Goodwill and other
   intangible asset
   impairment                 443.0        725.9            -      1,168.9
                        -----------  -----------  -----------  -----------
Total expenses              7,243.5      2,287.4        377.0      9,907.9
                        -----------  -----------  -----------  -----------
Loss before income
 taxes and minority
 interest                    (385.3)      (629.3)      (368.2)    (1,382.8)
Adjustments:
  Purchase accounting
   (a):
    Direct operating and
     selling, general
     and administrative        40.4         36.0          2.0         78.4
    Depreciation of
     revenue earning
     equipment                 (0.2)        22.8            -         22.6
  Non-cash debt
   charges (b)                 71.1         10.3         18.8        100.2
  Restructuring
   charges (c)                 98.4        103.2         14.6        216.2
  Restructuring
   related charges (c)         19.5          3.1          3.7         26.3
  Goodwill and other
   intangible
   asset impairment           443.0        725.9            -      1,168.9
  Unrealized loss on
   derivative (d)              12.0            -            -         12.0
  Realized gain on
   derivative (d)              (9.8)           -            -         (9.8)
  Management
   transition costs (d)           -            -          5.2          5.2
                        -----------  -----------  -----------  -----------
Adjusted pre-tax income
 (loss)                       289.1        272.0       (323.9)       237.2
Assumed (provision)
 benefit for
 income taxes of 34%          (98.3)       (92.5)       110.1        (80.7)
Minority interest                 -            -        (20.8)       (20.8)
                        -----------  -----------  -----------  -----------
Adjusted net income
 (loss)                 $     190.8  $     179.5  $    (234.6) $     135.7
                        ===========  ===========  ===========  ===========

Pro forma diluted
 number of shares
 outstanding                                                         325.5

Adjusted diluted
 earnings per share                                            $      0.42



                                    Year Ended December 31, 2007
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                          Rental        Rental       Items        Total
                        -----------  -----------  -----------  -----------
Total revenues:         $   6,920.6  $   1,755.9  $       9.1  $   8,685.6
                        -----------  -----------  -----------  -----------
Expenses:
  Direct operating and
   selling, general
   and administrative       4,319.8        993.1        107.1      5,420.0
  Depreciation of
   revenue earning
   equipment                1,695.4        308.0            -      2,003.4
  Interest, net of
   interest income            436.8        146.3        292.3        875.4
                        -----------  -----------  -----------  -----------
Total expenses              6,452.0      1,447.4        399.4      8,298.8
                        -----------  -----------  -----------  -----------
Income (loss) before
 income taxes and
 minority interest            468.6        308.5       (390.3)       386.8
Adjustments:
  Purchase accounting
   (a):
    Direct operating
     and selling,
     general and
     administrative            38.3         35.3          1.8         75.4
    Depreciation of
     revenue earning
     equipment                 (3.0)        22.8            -         19.8
  Non-cash debt
   charges (b)                 66.5         11.2         28.2        105.9
  Restructuring
   charges (c)                 64.5          4.9         27.0         96.4
  Restructuring
   related charges (c)            -            -            -            -
  Vacation accrual
   adjustment (c)             (25.8)        (8.9)        (1.8)       (36.5)
  Unrealized gain on
   derivative (d)              (4.1)           -            -         (4.1)
  Secondary offering
   costs (d)                      -            -          2.0          2.0
  Management
   transition costs (d)           -            -         15.0         15.0
                        -----------  -----------  -----------  -----------
Adjusted pre-tax income
 (loss)                       605.0        373.8       (318.1)       660.7
Assumed (provision)
 benefit for
 income taxes of 35%         (211.7)      (130.8)       111.3       (231.2)
Minority interest                 -            -        (19.7)       (19.7)
                        -----------  -----------  -----------  -----------
Adjusted net income
 (loss)                 $     393.3  $     243.0  $    (226.5) $     409.8
                        ===========  ===========  ===========  ===========

Pro forma diluted
 number of shares
 outstanding                                                         324.8

Adjusted diluted
 earnings per share                                            $      1.26


(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 months
    and year ended December 31, 2008, also includes $4.0 million and
    $11.8 million, respectively, associated with the ineffectiveness of our
    interest rate swaps. For the three months and year ended December 31,
    2007, also includes $2.7 million and $20.4 million, respectively,
    associated with the ineffectiveness of our interest rate swaps. For the
    three months and year ended December 31, 2008, also includes the
    write-off of $22.3 million and $30.0 million, respectively, of
    unamortized debt costs relating to those countries who did not
    participate in the take-out asset-based facilities. For the year ended
    December 31, 2007, also includes the write-off of $16.2 million of
    unamortized debt costs associated with a debt modification.
(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.



                                                                   Table 6
                        HERTZ GLOBAL HOLDINGS, INC.
                RECONCILIATION OF GAAP TO NON-GAAP 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 December 31, 2008
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                          Rental       Rental        Items        Total
                        -----------  -----------  -----------  -----------

Loss before income
 taxes and minority
 interest               $    (594.7) $    (747.9) $    (103.6) $  (1,446.2)
  Depreciation and
   amortization               483.9        108.0          1.5        593.4
  Interest, net of
   interest income            127.9         22.1         78.5        228.5
  Minority interest               -            -         (4.6)        (4.6)
                        -----------  -----------  -----------  -----------
EBITDA                         17.1       (617.8)       (28.2)      (628.9)
Adjustments:
  Car rental fleet
   interest                  (128.5)           -            -       (128.5)
  Car rental fleet
   depreciation              (444.0)           -            -       (444.0)
  Non-cash expenses
   and charges (a)             34.0          0.3         11.9         46.2
  Extraordinary,
   unusual or
   non-recurring
   gains and losses (b)       485.1        775.2         11.8      1,272.1
                        -----------  -----------  -----------  -----------
Corporate EBITDA        $     (36.3) $     157.7  $      (4.5)       116.9
                        ===========  ===========  ===========
  Equipment rental maintenance capital expenditures, net             (80.3)
  Non-fleet capital expenditures, net                                  1.6
  Changes in working capital (c)                                     315.3
  Changes in other assets and liabilities (c)                       (282.6)
                                                               -----------
Unlevered pre-tax cash flow (d)                                       70.9
  Corporate net cash interest                                        (88.8)
  Corporate cash taxes                                               (10.8)
                                                               -----------
Levered after-tax cash flow before fleet growth (d)                  (28.7)
  Equipment rental fleet growth capital expenditures                 215.1
  Car rental net fleet equity requirement                            244.1
                                                               -----------
Levered after-tax cash flow after fleet growth (d)             $     430.5
                                                               ===========



                               Three Months Ended December 31, 2007
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental      Rental        Items        Total
                        -----------  -----------  -----------  -----------

Income (loss) before
 income taxes and
 minority interest      $      89.4  $      84.3  $     (92.4) $      81.3
  Depreciation and
   amortization               454.9        107.3          1.1        563.3
  Interest, net of
   interest income            108.2         38.9         67.0        214.1
  Minority interest               -            -         (5.3)        (5.3)
                        -----------  -----------  -----------  -----------
EBITDA                        652.5        230.5        (29.6)       853.4
Adjustments:
  Car rental fleet
   interest                  (107.1)           -            -       (107.1)
  Car rental fleet
   depreciation              (415.7)           -            -       (415.7)
  Non-cash expenses
   and charges (a)             11.9          0.2         15.2         27.3
  Extraordinary,
   unusual or
   non-recurring
   gains and losses (b)        12.8         (0.4)        14.9         27.3
                        -----------  -----------  -----------  -----------
Corporate EBITDA        $     154.4  $     230.3  $       0.5        385.2
                        ===========  ===========  ===========
  Equipment rental maintenance capital expenditures, net             (78.7)
  Non-fleet capital expenditures, net                                (23.9)
  Changes in working capital (c)                                     176.6
  Changes in other assets and liabilities (c)                        (33.9)
                                                               -----------
Unlevered pre-tax cash flow (d)                                      425.3
  Corporate net cash interest                                        (99.3)
  Corporate cash taxes                                                (9.9)
                                                               -----------
Levered after-tax cash flow before fleet growth (d)                  316.1
  Equipment rental fleet growth capital expenditures                  15.7
  Car rental net fleet equity requirement                            255.0
                                                               -----------
Levered after-tax cash flow after fleet growth (d)             $     586.8
                                                               ===========



                                    Year Ended December 31, 2008
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental      Rental        Items        Total
                        -----------  -----------  -----------  -----------

Loss before income
 taxes and minority
 interest               $    (385.3) $    (629.3) $    (368.2) $  (1,382.8)
  Depreciation and
   amortization             2,003.7        423.6          6.0      2,433.3
  Interest, net of
   interest income            444.8        109.5        290.9        845.2
  Minority interest               -            -        (20.8)       (20.8)
                        -----------  -----------  -----------  -----------
EBITDA                      2,063.2        (96.2)       (92.1)     1,874.9
Adjustments:
  Car rental fleet
   interest                  (450.7)           -            -       (450.7)
  Car rental fleet
   depreciation            (1,843.8)           -            -     (1,843.8)
  Non-cash expenses
   and charges (a)             83.0            -         30.0        113.0
 Extraordinary,
  unusual or
  non-recurring
  gains and losses (b)        551.1        832.2         23.5      1,406.8
                        -----------  -----------  -----------  -----------
Corporate EBITDA        $     402.8  $     736.0  $     (38.6)     1,100.2
                        ===========  ===========  ===========
  Equipment rental maintenance capital expenditures, net            (312.3)
  Non-fleet capital expenditures, net                               (104.8)
  Changes in working capital (c)                                      (6.8)
  Changes in other assets and liabilities (c)                       (558.4)
                                                               -----------
Unlevered pre-tax cash flow (d)                                      117.9
  Corporate net cash interest                                       (358.4)
  Corporate cash taxes                                               (33.4)
                                                               -----------
Levered after-tax cash flow before fleet growth (d)                 (273.9)
  Equipment rental fleet growth capital expenditures                 492.7
  Car rental net fleet equity requirement                            (51.1)
                                                               -----------
Levered after-tax cash flow after fleet growth (d)             $     167.7
                                                               ===========



                                    Year Ended December 31, 2007
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental      Rental        Items        Total
                        -----------  -----------  -----------  -----------

Income (loss) before
 income taxes and
 minority interest      $     468.6  $     308.5  $    (390.3) $     386.8
  Depreciation and
   amortization             1,856.6        380.6          5.9      2,243.1
  Interest, net of
   interest income            436.8        146.3        292.3        875.4
  Minority interest               -            -        (19.7)       (19.7)
                        -----------  -----------  -----------  -----------
EBITDA                      2,762.0        835.4       (111.8)     3,485.6
Adjustments:
  Car rental fleet
   interest                  (427.8)           -            -       (427.8)
  Car rental fleet
   depreciation            (1,695.4)           -            -     (1,695.4)
  Non-cash expenses
   and charges (a)             60.4          2.7         39.1        102.2
  Extraordinary,
   unusual or
   non-recurring
   gains and losses (b)        38.7         (4.0)        42.2         76.9
                        -----------  -----------  -----------  -----------
Corporate EBITDA        $     737.9  $     834.1  $     (30.5)     1,541.5
                        ===========  ===========  ===========
  Equipment rental maintenance capital expenditures, net            (272.8)
  Non-fleet capital expenditures, net                               (154.6)
  Changes in working capital (c)                                     233.4
  Changes in other assets and liabilities (c)                        (77.3)
                                                               -----------
Unlevered pre-tax cash flow (d)                                    1,270.2
  Corporate net cash interest                                       (399.6)
  Corporate cash taxes                                               (28.3)
                                                               -----------
Levered after-tax cash flow before fleet growth (d)                  842.3
  Equipment rental fleet growth capital expenditures                (281.8)
  Car rental net fleet equity requirement                             (7.9)
                                                               -----------
Levered after-tax cash flow after fleet growth (d)             $     552.6
                                                               ===========


(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 December 31, 2008
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental      Rental        Items        Total
                        -----------  -----------  -----------  -----------

Non-cash amortization
 and write-off of debt
 costs included in car
 rental fleet interest  $      33.5  $         -  $         -  $      33.5
Non-cash stock-based
 employee
 compensation charges             -            -          7.7          7.7
Non-cash charges for
 workers' compensation          0.5          0.3          0.1          0.9
Non-cash charges for
 pension                          -            -          4.1          4.1
                        -----------  -----------  -----------  -----------
Total non-cash expenses
 and charges            $      34.0  $       0.3  $      11.9  $      46.2
                        ===========  ===========  ===========  ===========


NON-CASH EXPENSES AND
 CHARGES                       Three Months Ended December 31, 2007
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental      Rental        Items        Total
                        -----------  -----------  -----------  -----------

Non-cash amortization
 and write-off of debt
 costs included in car
 rental fleet interest  $      12.2  $         -  $         -  $      12.2
Non-cash stock-based
 employee
 compensation charges             -            -          6.0          6.0
Non-cash charges for
 workers' compensation          0.6          0.2            -          0.8
Non-cash charges for
 pension                          -            -          9.2          9.2
Unrealized gain on
 derivative                    (0.9)           -            -         (0.9)
                        -----------  -----------  -----------  -----------
Total non-cash expenses
 and charges            $      11.9  $       0.2  $      15.2  $      27.3
                        ===========  ===========  ===========  ===========


NON-CASH EXPENSES AND
 CHARGES                            Year Ended December 31, 2008
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental      Rental        Items        Total
                        -----------  -----------  -----------  -----------

Non-cash amortization
 and write-off of debt
 costs included in car
 rental fleet interest  $      71.0  $         -  $         -  $      71.0
Non-cash stock-based
 employee
 compensation charges             -            -         28.0         28.0
Non-cash charges for
 pension                          -            -          2.0          2.0
Unrealized loss on
 derivative                    12.0            -            -         12.0
                        -----------  -----------  -----------  -----------
Total non-cash expenses
 and charges            $      83.0  $         -  $      30.0  $     113.0
                        ===========  ===========  ===========  ===========


NON-CASH EXPENSES AND
 CHARGES                            Year Ended December 31, 2007
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental       Rental       Items        Total
                        -----------  -----------  -----------  -----------

Non-cash amortization
 and write-off of debt
 costs included in car
 rental fleet interest  $      64.4  $         -  $         -  $      64.4
Non-cash stock-based
 employee
 compensation charges             -            -         26.8         26.8
Non-cash charges for
 workers' compensation         (0.2)         2.7          0.1          2.6
Non-cash charges for
 pension                          -            -         12.2         12.2
Unrealized gain on
 derivative                    (3.8)           -            -         (3.8)
                        -----------  -----------  -----------  -----------
Total non-cash expenses
 and charges            $      60.4  $       2.7  $      39.1  $     102.2
                        ===========  ===========  ===========  ===========


(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 December 31, 2008
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental      Rental        Items        Total
                        -----------  -----------  -----------  -----------

Restructuring charges   $      33.7  $      48.2  $       7.1  $      89.0
Restructuring related
 charges                        3.4          1.1          0.8          5.3
Goodwill and other
 intangible
 asset impairment             443.0        725.9            -      1,168.9
Realized loss on
 derivative                     5.0            -            -          5.0
Management transition
 costs                            -            -          3.9          3.9
                        -----------  -----------  -----------  -----------
Total extraordinary,
 unusual or
 non-recurring items    $     485.1  $     775.2  $      11.8  $   1,272.1
                        ===========  ===========  ===========  ===========


EXTRAORDINARY, UNUSUAL
 OR NON-RECURRING ITEMS        Three Months Ended December 31, 2007
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental       Rental       Items        Total
                        -----------  -----------  -----------  -----------

Restructuring charges   $      18.2  $       1.5  $      11.3  $      31.0
Vacation accrual
 adjustment                    (5.4)        (1.9)        (0.4)        (7.7)
Management transition
 costs                            -            -          4.0          4.0
                        -----------  -----------  -----------  -----------
Total extraordinary,
 unusual or
 non-recurring items    $      12.8  $      (0.4) $      14.9  $      27.3
                        ===========  ===========  ===========  ===========


EXTRAORDINARY, UNUSUAL
 OR NON-RECURRING ITEMS             Year Ended December 31, 2008
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental       Rental       Items        Total
                        -----------  -----------  -----------  -----------

Restructuring charges   $      98.4  $     103.2  $      14.6  $     216.2
Restructuring related
 charges                       19.5          3.1          3.7         26.3
Goodwill and other
 intangible
  asset impairment            443.0        725.9            -      1,168.9
Realized gain on
 derivative                    (9.8)           -            -         (9.8)
Management transition
 costs                            -            -          5.2          5.2
                        -----------  -----------  -----------  -----------
Total extraordinary,
 unusual or
 non-recurring items    $     551.1  $     832.2  $      23.5  $   1,406.8
                        ===========  ===========  ===========  ===========


EXTRAORDINARY, UNUSUAL
 OR NON-RECURRING ITEMS             Year Ended December 31, 2007
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental      Rental        Items        Total
                        -----------  -----------  -----------  -----------

Restructuring charges   $      64.5  $       4.9  $      27.0  $      96.4
Vacation accrual
 adjustment                   (25.8)        (8.9)        (1.8)       (36.5)
Secondary offering
 costs                            -            -          2.0          2.0
Management transition
 costs                            -            -         15.0         15.0
                        -----------  -----------  -----------  -----------
Total extraordinary,
 unusual or
 non-recurring items    $      38.7  $      (4.0) $      42.2  $      76.9
                        ===========  ===========  ===========  ===========

(c) In 2008, the Company has reclassified its December 31, 2007 interest
    rate swap liability balance from "changes in working capital" to
    "changes in other assets and liabilities."
(d) Amounts include the effect of fluctuations in foreign currency.



                                                                   Table 7
                        HERTZ GLOBAL HOLDINGS, INC.
                    RECONCILIATION OF NON-GAAP MEASURES
                              (In millions)
                                Unaudited


RECONCILIATION FROM ADJUSTED PRE-TAX INCOME (LOSS) TO CORPORATE EBITDA

                               Three Months Ended December 31, 2008
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                          Rental       Rental        Items        Total
                        -----------  -----------  -----------  -----------
Adjusted pre-tax income
 (loss) (a)             $     (66.7) $      46.0  $     (83.0) $    (103.7)
  Depreciation of
   property and
   equipment                   31.4          8.5          1.5         41.4
  Amortization of other
   intangible assets            8.5          8.1            -         16.6
  Equipment rental
   fleet depreciation             -         91.4            -         91.4
  Interest, net of
   interest income            127.9         22.1         78.5        228.5
  Car rental fleet
   interest                  (128.5)           -            -       (128.5)
  Non-cash debt charges       (33.2)        (2.3)        (8.3)       (43.8)
  Non-cash amortization
   and write-off of
   debt costs included
   in car rental fleet
   interest                    33.5            -            -         33.5
  Purchase accounting          (9.7)       (16.4)        (0.5)       (26.6)
  Non-cash stock-based
   employee
   compensation charges           -            -          7.7          7.7
  Non-cash charges for
   workers'
   compensation                 0.5          0.3          0.1          0.9
  Non-cash charges for
   pension                        -            -          4.1          4.1
  Minority interest               -            -         (4.6)        (4.6)
                        -----------  -----------  -----------  -----------
Corporate EBITDA (a)    $     (36.3) $     157.7  $      (4.5) $     116.9
                        ===========  ===========  ===========  ===========



                               Three Months Ended December 31, 2007
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental      Rental        Items        Total
                        -----------  -----------  -----------  -----------
Adjusted pre-tax income
 (loss) (a)             $     124.1  $     102.3  $     (73.9) $     152.5
  Depreciation of
   property and
   equipment                   31.0         10.6          1.1         42.7
  Amortization of other
   intangible assets            8.2          7.9            -         16.1
  Equipment rental
   fleet depreciation             -         88.8            -         88.8
  Interest, net of
   interest income            108.2         38.9         67.0        214.1
  Car rental fleet
   interest                  (107.1)           -            -       (107.1)
  Non-cash debt charges       (12.6)        (2.9)        (3.1)       (18.6)
  Non-cash amortization
   and write-off of
   debt costs included
   in car rental fleet
   interest                    12.2            -            -         12.2
  Purchase accounting         (10.2)       (15.5)        (0.5)       (26.2)
  Non-cash stock-based
   employee
   compensation charges           -            -          6.0          6.0
  Non-cash charges for
   workers'
   compensation                 0.6          0.2            -          0.8
  Non-cash charges for
   pension                        -            -          9.2          9.2
  Minority interest               -            -         (5.3)        (5.3)
                        -----------  -----------  -----------  -----------
Corporate EBITDA (a)    $     154.4  $     230.3  $       0.5  $     385.2
                        ===========  ===========  ===========  ===========



                                    Year Ended December 31, 2008
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental      Rental        Items        Total
                        -----------  -----------  -----------  -----------
Adjusted pre-tax income
 (loss) (a)             $     289.1  $     272.0  $    (323.9) $     237.2
  Depreciation of
   property and
   equipment                  126.0         40.8          6.0        172.8
  Amortization of other
   intangible assets           33.9         32.4            -         66.3
  Equipment rental
   fleet depreciation             -        350.4            -        350.4
  Interest, net of
   interest income            444.8        109.5        290.9        845.2
  Car rental fleet
   interest                  (450.7)           -            -       (450.7)
  Non-cash debt charges       (71.1)       (10.3)       (18.8)      (100.2)
  Non-cash amortization
   and write-off of
   debt costs included
   in car rental fleet
   interest                    71.0            -            -         71.0
  Purchase accounting         (40.2)       (58.8)        (2.0)      (101.0)
  Non-cash stock-based
   employee
   compensation charges           -            -         28.0         28.0
  Non-cash charges for
   pension                        -            -          2.0          2.0
  Minority interest               -            -        (20.8)       (20.8)
                        -----------  -----------  -----------  -----------
Corporate EBITDA (a)    $     402.8  $     736.0  $     (38.6) $   1,100.2
                        ===========  ===========  ===========  ===========



                                    Year Ended December 31, 2007
                        --------------------------------------------------
                                                     Other
                            Car       Equipment   Reconciling
                           Rental      Rental        Items        Total
                        -----------  -----------  -----------  -----------
Adjusted pre-tax income
 (loss) (a)             $     605.0  $     373.8  $    (318.1) $     660.7
  Depreciation of
   property and
   equipment                  130.8         40.4          5.9        177.1
  Amortization of other
   intangible assets           30.4         32.2            -         62.6
  Equipment rental
   fleet depreciation             -        308.0            -        308.0
  Interest, net of
   interest income            436.8        146.3        292.3        875.4
  Car rental fleet
   interest                  (427.8)           -            -       (427.8)
  Non-cash debt charges       (66.5)       (11.2)       (28.2)      (105.9)
  Non-cash amortization
   and write-off of
   debt costs included
   in car rental fleet
   interest                    64.4            -            -         64.4
  Purchase accounting         (35.3)       (58.1)        (1.8)       (95.2)
  Non-cash stock-based
   employee
   compensation charges           -            -         26.8         26.8
  Non-cash charges for
   workers'
   compensation                (0.2)         2.7          0.1          2.6
  Non-cash charges for
   pension                        -            -         12.2         12.2
  Unrealized loss on
   derivative                   0.3            -            -          0.3
  Minority interest               -            -        (19.7)       (19.7)
                        -----------  -----------  -----------  -----------
Corporate EBITDA (a)    $     737.9  $     834.1  $     (30.5) $   1,541.5
                        ===========  ===========  ===========  ===========

(a) Represents a non-GAAP measure, see the accompanying reconciliations and
    definitions.




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


                                        Three Months Ended
                                           December 31,
RECONCILIATION FROM OPERATING        ------------------------
 CASH FLOWS TO EBITDA:                   2008         2007
                                     -----------  -----------

Net cash provided by operating
 activities                          $     520.7  $     881.0
  Amortization and write-off of
   debt costs and debt
   modification costs                      (39.7)       (15.8)
  Provision for losses on doubtful
   accounts                                 (9.4)        (3.5)
  Unrealized gain on derivative                -          0.9
  Gain on sale of property and
   equipment                                 0.2         10.4
  Loss on ineffectiveness of
   interest rate swaps                      (4.0)        (2.7)
  Stock-based employee
   compensation charges                     (7.7)        (8.6)
  Asset writedowns                         (59.1)           -
  Goodwill and other intangible
   asset impairment                     (1,168.9)           -
  Minority interest                         (4.6)        (5.3)
  Deferred income taxes                    243.6         (1.6)
  Benefit for taxes on income             (236.6)        (4.7)
  Interest, net of interest income         228.5        214.1
  Net changes in assets and
   liabilities                             (91.9)      (210.8)
                                     -----------  -----------
EBITDA                               $    (628.9) $     853.4
                                     ===========  ===========

                                            Year Ended
                                           December 31,
RECONCILIATION FROM OPERATING        ------------------------
 CASH FLOWS TO EBITDA:                   2008         2007
                                     -----------  -----------

Net cash provided by operating
 activities                          $   2,095.5  $   3,089.5
  Amortization and write-off of
   debt costs and debt
   modification costs                      (88.1)       (85.3)
  Provision for losses on doubtful
   accounts                                (31.1)       (13.9)
  Unrealized gain (loss) on
   derivative                              (12.0)         3.9
  Gain on sale of property and
   equipment                                 9.6         24.8
  Loss on ineffectiveness of
   interest rate swaps                     (11.8)       (20.4)
  Stock-based employee
   compensation charges                    (28.0)       (32.9)
  Asset writedowns                         (93.2)           -
  Goodwill and other intangible
   asset impairment                     (1,168.9)           -
  Minority interest                        (20.8)       (19.7)
  Deferred income taxes                    238.6        (59.7)
  Provision (benefit) for taxes on
   income                                 (200.6)       102.6
  Interest, net of interest income         845.2        875.4
  Net changes in assets and
   liabilities                             340.5       (378.7)
                                     -----------  -----------
EBITDA                               $   1,874.9  $   3,485.6
                                     ===========  ===========


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

Corporate Debt
Debt, less:                          $  10,972.3  $  12,844.2  $  11,960.1
  U.S. Fleet Debt and
   Pre-Acquisition Notes                 4,254.5      4,745.8      4,603.5
  International Fleet Debt               1,027.1      1,377.6      1,912.4
  U.K. Leveraged Financing                 167.8        278.8        222.7
  Fleet Financing Facility                 149.3        154.2        170.4
  Canadian Fleet Financing Facility        111.6        268.7        155.4
  International ABS Fleet Financing
   Facility                                591.1        711.9            -
  Other International Facilities            85.4        102.4         92.9
                                     -----------  -----------  -----------
    Fleet Debt                       $   6,386.8  $   7,639.4  $   7,157.3
                                     ===========  ===========  ===========
    Corporate Debt                   $   4,585.5  $   5,204.8  $   4,802.8
                                     ===========  ===========  ===========

Corporate Restricted Cash
Restricted Cash, less:               $     731.4  $     514.0  $     661.0
  Restricted Cash Associated with
   Fleet Debt                             (557.2)      (288.2)      (573.1)
                                     -----------  -----------  -----------
    Corporate Restricted Cash        $     174.2  $     225.8  $      87.9
                                     ===========  ===========  ===========

Net Corporate Debt
Corporate Debt, less:                $   4,585.5  $   5,204.8  $   4,802.8
  Cash and Equivalents                    (594.3)      (731.5)      (730.2)
  Corporate Restricted Cash               (174.2)      (225.8)       (87.9)
                                     -----------  -----------  -----------
    Net Corporate Debt               $   3,817.0  $   4,247.5  $   3,984.7
                                     ===========  ===========  ===========

Net Fleet Debt
Fleet Debt, less:                    $   6,386.8  $   7,639.4  $   7,157.3
  Restricted Cash Associated with
   Fleet Debt                             (557.2)      (288.2)      (573.1)
                                     -----------  -----------  -----------
    Net Fleet Debt                   $   5,829.6  $   7,351.2  $   6,584.2
                                     ===========  ===========  ===========

Total Net Debt                       $   9,646.6  $  11,598.7  $  10,568.9
                                     ===========  ===========  ===========



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

                                      September     December
NET CORPORATE DEBT                        30,          31,
 AND NET FLEET DEBT                      2007         2006
                                     -----------  -----------

Corporate Debt
Debt, less:                          $  13,035.0  $  12,276.2
  U.S. Fleet Debt and
   Pre-Acquisition Notes                 5,099.6      4,845.2
  International Fleet Debt               2,398.8      1,987.8
  Fleet Financing Facility                 166.3        165.9
  Canadian Fleet Financing Facility        272.7            -
  Other International Facilities            88.6            -
                                     -----------  -----------
    Fleet Debt                       $   8,026.0  $   6,998.9
                                     ===========  ===========
    Corporate Debt                   $   5,009.0  $   5,277.3
                                     ===========  ===========

Corporate Restricted Cash
Restricted Cash, less:               $     430.2  $     552.5
  Restricted Cash Associated with
   Fleet Debt                             (390.0)      (487.0)
                                     -----------  -----------
    Corporate Restricted Cash        $      40.2  $      65.5
                                     ===========  ===========

Net Corporate Debt
Corporate Debt, less:                $   5,009.0  $   5,277.3
  Cash and Equivalents                    (397.3)      (674.5)
  Corporate Restricted Cash                (40.2)       (65.5)
                                     -----------  -----------
    Net Corporate Debt               $   4,571.5  $   4,537.3
                                     ===========  ===========

Net Fleet Debt
Fleet Debt, less:                    $   8,026.0  $   6,998.9
  Restricted Cash Associated with
   Fleet Debt                             (390.0)      (487.0)
                                     -----------  -----------
    Net Fleet Debt                   $   7,636.0  $   6,511.9
                                     ===========  ===========

Total Net Debt                       $  12,207.5  $  11,049.2
                                     ===========  ===========


                                        Three Months Ended
                                           December 31,
CAR RENTAL RATE REVENUE PER          ------------------------
 TRANSACTION DAY (a)                     2008         2007
                                     -----------  -----------

Car rental revenue per
 statement of operations (b)         $   1,390.4  $   1,639.5
Non-rental rate revenue (c)               (214.1)      (236.8)
Foreign currency adjustment                 70.1          2.6
                                     -----------  -----------
Rental rate revenue                  $   1,246.4  $   1,405.3
                                     ===========  ===========
Transactions days (in thousands)          28,856       31,000
Rental rate revenue per transaction
 day (in whole dollars)              $     43.19  $     45.33

                                           Year Ended
CAR RENTAL RATE REVENUE PER                December 31,
                                     ------------------------
 TRANSACTION DAY (a)                     2008         2007
                                     -----------  -----------

Car rental revenue per
 statement of operations (b)         $   6,730.4  $   6,800.7
Non-rental rate revenue (c)               (989.0)      (972.9)
Foreign currency adjustment                 19.7        136.4
                                     -----------  -----------
Rental rate revenue                  $   5,761.1  $   5,964.2
                                     ===========  ===========
Transactions days (in thousands)         127,897      129,355
Rental rate revenue per transaction
 day (in whole dollars)              $     45.04  $     46.11


                                        Three Months Ended
                                           December 31,
EQUIPMENT RENTAL AND RENTAL          ------------------------
 RELATED REVENUE (a)                     2008         2007
                                     -----------  -----------

Equipment rental revenue per
 statement of operations             $     370.4  $     467.9
Equipment sales and other revenue          (39.6)       (49.5)
Foreign currency adjustment                 11.2          0.6
                                     -----------  -----------
Rental and rental related revenue    $     342.0  $     419.0
                                     ===========  ===========

                                            Year Ended
                                           December 31,
EQUIPMENT RENTAL AND RENTAL          ------------------------
 RELATED REVENUE (a)                     2008         2007
                                     -----------  -----------

Equipment rental revenue per
 statement of operations             $   1,657.3  $   1,755.3
Equipment sales and other revenue         (177.0)      (190.2)
Foreign currency adjustment                  1.5         31.0
                                     -----------  -----------
Rental and rental related revenue    $   1,481.8  $   1,596.1
                                     ===========  ===========


(a) Based on 12/31/07 foreign exchange rates.
(b) Includes U.S. off-airport revenues of $216.8 million and $230.1 million
    for the three months ended December 31, 2008 and 2007, respectively,
    and $971.8 million and $963.8 million for the years ended December 31,
    2008 and 2007, respectively.
(c) Consists of domestic revenues of $142.3 million and $160.0 million and
    international revenues of $71.8 million and $76.8 million for the three
    months ended December 31, 2008 and 2007, respectively, and domestic
    revenues of $671.1 million and $650.0 million and international
    revenues of $317.9 million and $322.9 million for the years ended
    December 31, 2008 and 2007, respectively.




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


TOTAL NET CASH FLOW
                                                   Three         Three
                                                Months Ended  Months Ended
                                                December 31,  December 31,
                                                    2008          2007
                                                ------------  ------------


Net cash provided by operating activities       $      520.7  $      881.0
Net cash provided by investing activities            1,077.3         629.3
Net change in restricted cash                          217.9         229.9
Payment of financing costs                             (27.4)        (15.6)
Exercise of stock options                                  -           1.3
Distributions of minority interest                     (11.2)         (7.7)
Cash overdraft reclass                                 (10.3)         10.9
                                                ------------  ------------

Total net cash flow                             $    1,767.0  $    1,729.1
                                                ============  ============


                                                 Year Ended    Year Ended
                                                December 31,  December 31,
                                                    2008          2007
                                                ------------  ------------


Net cash provided by operating activities       $    2,095.5  $    3,089.5
Net cash used in investing activities               (1,459.6)     (2,343.6)
Net change in restricted cash                           71.8         105.9
Payment of financing costs                             (61.2)        (39.9)
Exercise of stock options                                6.8           5.6
Distributions of minority interest                     (24.2)        (13.5)
Proceeds from the disgorgement of
 stockholder short-swing profits                           -           4.8
Cash overdraft reclass                                 (36.0)         39.0
                                                ------------  ------------

Total net cash flow                             $      593.1  $      847.8
                                                ============  ============

Non-GAAP Measures: Definitions and Use/Importance

On December 21, 2005 ("Closing Date") an indirect, wholly owned subsidiary of Hertz Global Holdings, Inc. ("Hertz Holdings") acquired all of The Hertz Corporation's ("Hertz") common stock from Ford Holdings LLC ("Ford Holdings") pursuant to a Stock Purchase Agreement, dated as of September 12, 2005, among Ford Motor Company ("Ford"), Ford Holdings and Hertz Holdings (previously known as CCMG Holdings, Inc.). As a result of this transaction, investment funds associated with or designated by Clayton, Dubilier & Rice, Inc., The Carlyle Group and Merrill Lynch Global Private Equity (collectively, the "Sponsors"), owned all of the common stock of Hertz Holdings. After giving effect to the initial public offering of the common stock of Hertz Holdings in November 2006 and a secondary offering in June 2007, the Sponsors now own approximately 55% of the common stock of Hertz Holdings. We refer to the acquisition of all of Hertz's common stock as the "Acquisition." We refer to the Acquisition, together with related transactions entered into to finance the cash consideration for the Acquisition, to refinance certain of our existing indebtedness and to pay related transaction fees and expenses, as the "Transactions." The term "GAAP" refers to accounting principles generally accepted in the United States of America.

Definitions of non-GAAP measures utilized in Hertz Holdings' February 23, 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") and Corporate EBITDA

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.

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 it to maintain 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 December 31, 2008, 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

Adjusted pre-tax income is calculated as income before income taxes and minority 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 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 and minority 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 2008, the actual diluted weighted average number of shares outstanding for the year ended December 31, 2007, and for 2007, the pro forma post-IPO number of shares outstanding. 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. Utilizing the pro forma post-IPO number of shares outstanding in 2007 is important to management and investors because it represents a measure of our earnings per share as if the effects of the initial public offering were applicable to all periods in 2007.

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 and Rental Rate Revenue Per Transaction Day

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. 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 management and investors as it represents the best measurement 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 minority 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 short-term investments, if any, and corporate restricted cash. Corporate debt consists of senior notes issued prior to the Acquisition; borrowings under our Senior Term Facility; borrowings under our Senior ABL Facility; our Senior Notes; our Senior Subordinated 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. 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 lease financings 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, the U.K. Leveraged Financing and the pre- Acquisition ABS Notes. This measure is important to management, investors and ratings agencies as it helps measure our leverage.

16. Total Net Debt

Total net debt is calculated as net corporate debt plus net fleet debt.

17. 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.

18. 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.

19. Total Net Cash Flow

Total net cash flow is calculated as the change in the cash and equivalents, restricted cash and debt balances, adjusted for the effects of foreign currency. Total net cash flow is important to management and investors 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 as a percentage of the average stock price for the period.