SOURCE: The Hertz Corporation

August 07, 2008 17:39 ET

Hertz Reports Solid Second Quarter Operating Results

PARK RIDGE, NJ--(Marketwire - August 7, 2008) - Hertz Global Holdings, Inc. (NYSE: HTZ)

--  Record second quarter worldwide revenues of $2.3 billion, up 4.6% year-
    over-year.
--  International revenues comprise 37.0% of total worldwide revenues, up
    from 32.4%.
--  Adjusted EPS for the quarter of $0.30 equal to second quarter 2007;
    GAAP EPS of $0.16 compared with $0.26 in 2007.
--  Levered cash flow of $305.0 million for the quarter, a significant
    year-over-year improvement; net cash provided by operating activities was
    $708.3 million.
    

Hertz Global Holdings, Inc. (NYSE: HTZ) (with its subsidiaries, the "Company" or "we") reported record second quarter 2008 worldwide revenues of $2.3 billion, an increase of 4.6% over the prior year (0.4% in constant currency). Revenue growth outside of the United States is a key element of the Company's diversification strategy, and revenues from international operations constituted 37.0% of worldwide revenues for the quarter, up from 32.4%. Overall revenue growth was led by a 5.2% increase in worldwide car rental revenues for the quarter to a record $1.8 billion. Revenues from worldwide equipment rental were a record for the second quarter at $443.3 million, up 2.4% over the prior year period.

Adjusted pre-tax income(1) for the second quarter of 2008 was $154.7 million, a decrease of 1.6% compared with the second quarter of 2007, and income before income taxes and minority interest ("pre-tax income"), on a GAAP basis, was $93.0 million, a 34.0% decrease from $141.0 million of pre-tax income in the second quarter of 2007. Corporate EBITDA(2) for the second quarter of 2008 was $378.3 million, an increase of 1.9% from 2007.

Second quarter 2008 adjusted net income(3) was $96.4 million, 1.0% lower than the second quarter of 2007, resulting in adjusted diluted earnings per share(3) for the quarter of $0.30, the same as the prior year period, with net income, on a GAAP basis, for the quarter, of $51.2 million, or $0.16 per share on a diluted basis, compared with a net income of $83.7 million, or $0.26 per share on a diluted basis, for the second quarter of 2007. The decline in GAAP net income is attributable primarily to increased restructuring and restructuring-related costs, the non-cash write-off of deferred debt costs related to the European fleet financing arrangement and the change in the mark-to-market values on our interest rate derivative contracts. Also, in 2007 we benefited from a change in the vacation accrual reserve.

INCOME MEASUREMENTS, SECOND QUARTER 2008 & 2007

                           Q2 2008                        Q2 2007
                  ---------------------------  ----------------------------
(in millions,                       Diluted                       Diluted
 except per      Pre-tax    Net     Earnings   Pre-tax    Net     Earnings
 share amounts)  Income    Income   Per Share  Income    Income   Per Share
                --------  --------  --------- --------  --------  ---------
Earnings
 Measures, as
 reported (EPS
 based on 322.7M
 and 327.6M
 diluted shares) $  93.0  $   51.2  $    0.16 $  141.0  $   83.7  $    0.26
                          ========  =========           ========  =========
Adjustments:
  Purchase
   accounting       24.4                          22.6
  Non-cash debt
   charges          21.7                           4.1
  Restructuring
   and related
   charges          40.1                          16.7
  Gains on
   derivatives     (23.8)                        (10.2)
  Vacation
   accrual
   adjustment       (0.7)                        (19.6)
  Other                -                           2.6
                --------                      --------
Adjusted
 pre-tax income    154.7     154.7               157.2     157.2
Assumed
 provision for
 income taxes
 at 34% and 35%              (52.6)                        (55.0)
Minority
 interest                     (5.7)                         (4.8)
                --------  --------            --------  --------
Earnings
 Measures, as
 adjusted (EPS
 based on
 325.5M and
 324.8M diluted
 shares)        $  154.7  $   96.4  $    0.30 $  157.2  $   97.4  $    0.30
                ========  ========  ========= ========  ========  =========

The Company ended the second quarter of 2008 with total debt of $12.69 billion and net corporate debt(4) of $3.91 billion, compared with total debt of $12.45 billion and net corporate debt of $4.37 billion as of June 30, 2007, an improvement in net corporate debt of $455.9 million. The reduction in net corporate debt during the second quarter is attributable to cash flows from earnings and reduced investments in car and equipment rental fleet growth. The Company's liquidity position remains strong and there is sufficient fleet debt capacity to meet 2008 fleet debt amortizations. In addition, levered cash flow(4) for the quarter was $305.0 million, compared with $46.1 million in the second quarter of 2007, attributable primarily to improved international car rental fleet debt utilization and reduced equipment rental fleet requirements.

Mark P. Frissora, the Company's Chairman and Chief Executive Officer, said, "Despite significant economic headwinds in the U.S. and European consumer travel markets, we nearly matched last year's profits for the second quarter because of our efficiency initiatives and especially strong performance by U.S. car rental which generated double-digit earnings growth in a difficult demand and pricing environment. Our results were affected by inflation in key areas including fuel, vehicle damage and concession fees. We are accelerating our efficiency initiatives and now expect to reduce expenses by $300 million this year to help overcome higher inflation. Additionally, we have generated $1.0 billion of levered cash flow over the past seven quarters, beating the target we set before the November 2006 IPO to generate a billion dollars of levered cash flow in 3 years. Net cash provided by operating activities for the same period was $5.3 billion."

WORLDWIDE CAR RENTAL

Worldwide car rental revenues were a record $1.8 billion for the second quarter of 2008, an increase of 5.2% over the prior year period. Transaction days for the quarter improved 1.4% [(2.2)% U.S.; 9.9% International] reflecting growth in the U.S. off-airport business and Europe. U.S. off-airport revenues for the second quarter increased 2.4% year-over-year, with transaction day growth of 1.9%. Rental rate revenue per transaction day(4) ("RPD") for the quarter was 1.9% below the prior year period [(0.9)% U.S.; (5.1)% International]. U.S. pricing improved towards the end of the quarter as Hertz implemented two price increases to take advantage of the summer vacation travel season.

Worldwide car rental adjusted pre-tax income for the second quarter of 2008 was $149.4 million, compared with $142.9 million last year, an increase of 4.5%. The improved result is attributable to cost initiatives, lower U.S. fleet costs and higher U.S. fleet utilization, partially offset by inflation in fuel and vehicle damage costs, as well as higher European fleet expenses.

The worldwide average number of Company-operated cars for the second quarter of 2008 was 474,900, an increase of 0.5% over the prior year period.

WORLDWIDE EQUIPMENT RENTAL

Worldwide equipment rental revenues were $443.3 million for the second quarter of 2008, a 2.4% increase over the prior year period, while pricing decreased approximately 1.1%. HERC achieved solid growth outside of the non-residential construction business in the U.S. as well as strong double-digit growth in Canada, especially Western Canada where economic activity related to the oil industry remains strong.

Adjusted pre-tax income for the second quarter of 2008 was $85.5 million, compared with $96.7 million last year, primarily attributable to the effects of reduced volume growth and pricing, partially offset by cost management initiatives.

The average acquisition cost of rental equipment operated during the second quarter of 2008 increased by 8.3% year-over-year -- compared with a 7.3% increase in the second quarter of 2007 over the prior year period -- to $3.5 billion, and net revenue earning equipment as of June 30, 2008 was $2.6 billion, a 3.5% decrease from the amount as of December 31, 2007.

OUTLOOK

For the full year 2008, and based on current visibility of economic conditions, the Company now forecasts total revenues of $8.7 billion to $8.8 billion. Corporate EBITDA is projected to be in the range of $1.40 billion to $1.465 billion; Adjusted pre-tax income in the range of $550 million to $600 million; Adjusted net income of between $340 million and $375 million, adjusted earnings per share are projected to be between $1.05 and $1.15 (using the normalized tax rate of 34% and 325.5 million shares, the number of diluted shares outstanding for the year ended December 31, 2007), and levered cash flows(4) of between $550 million and $650 million.(5)

RESULTS OF THE HERTZ CORPORATION

The Company's operating subsidiary, The Hertz Corporation ("Hertz"), posted the same revenues for the second quarter 2008 as the Company. Hertz's second quarter 2008 pre-tax income and net income were, however, slightly lower than those of the Company primarily because of additional interest expense recognized by Hertz on an inter-company loan from the Company.

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

(2) Corporate EBITDA, a non-GAAP measure of profitability, 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.

(3) Adjusted net income, a non-GAAP measure of profitability, represents the adjusted pre-tax income 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 per share is calculated as adjusted net income divided by the pro forma number of shares outstanding (325.5 million in 2008 and 324.8 million in 2007). See the accompanying reconciliations.

(4) 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.

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

CONFERENCE CALL INFORMATION

The Company's second quarter 2008 earnings conference call will be held on Friday, August 8, 2008, at 10:00 a.m. (EDT). To access the conference call live, dial 800-230-1074 (U.S.) or 612-332-0107 (International) using the pass code 930051 or listen via webcast at www.hertz.com/investorrelations. The conference call will be available for replay through August 15, 2008 by calling 800-475-6701 (U.S.) or 320-365-3844 (International) using the pass code 930051. 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 147 countries worldwide. Hertz is the number one airport car rental brand in the United States and at 69 major airports in Europe, operating both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Australia and New Zealand. In addition the Company has licensee locations in cities and airports in Africa, Asia and the Middle East. Product and service initiatives such as Hertz #1 Club Gold, NeverLost® customized, onboard navigation systems, SIRIUS Satellite Radio, and unique cars and SUVs offered through the Company's Prestige, Fun and Green collections, set Hertz apart from the competition. Hertz also operates one of the world's largest equipment rental businesses, Hertz Equipment Rental Corporation, offering a diverse line of equipment, including tools and supplies, as well as new and used equipment for sale, to customers ranging from major industrial companies to local contractors and consumers through more than 360 branches in the United States, Canada, France and Spain.

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; anticipated growth; economies of scale; the economy; future economic performance; the Company's ability to maintain profitability during adverse economic cycles 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 March 31, 2008, as filed with the SEC on May 9, 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 and
          Six Months Ended June 30, 2008 and 2007
Table 2:  Condensed Consolidated Statements of Operations As Reported and
          As Adjusted for the Three and Six Months Ended June 30, 2008 and
          2007
Table 3:  Segment and Other Information for the Three and Six Months Ended
          June 30, 2008 and 2007
Table 4:  Selected Operating and Financial Data as of or for the Three and
          Six Months Ended June 30, 2008 compared to the prior year period
Table 5:  Non-GAAP Reconciliations of Adjusted Pre-Tax Income (Loss) and
          Adjusted Net Income (Loss) for the Three and Six Months Ended
          June 30, 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 and Six Months Ended June 30, 2008 and 2007
Table 7:  Non-GAAP Reconciliations of Adjusted Pre-Tax Income (Loss) to
          Corporate EBITDA for the Three and Six Months Ended June 30, 2008
          and 2007
Table 8:  Non-GAAP Reconciliations of Operating Cash Flows to EBITDA, Net
          Corporate Debt and Net Fleet Debt as of June 30, 2008 and 2007
          and December 31, 2007, Car Rental Rate Revenue per Transaction
          Day and Equipment Rental and Rental Related Revenue for the Three
          and Six Months Ended June 30, 2008 and 2007
Table 9:  Non-GAAP Reconciliations of EBITDA, Corporate EBITDA, Unlevered
          Pre-Tax Cash Flow, Levered After-Tax Cash Flow Before Fleet
          Growth and Levered After-Tax Cash Flow After Fleet Growth for the
          Twelve Months Ended June 30, 2008 and 2007, and the Three Months
          Ended December 31, 2006.

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

                                 Three Months Ended       As a Percent
                                      June 30,         of Total Revenues
                                --------------------  -------------------
                                  2008       2007       2008       2007
                                ---------  ---------  --------   --------
Total revenues                  $ 2,275.3  $ 2,175.7     100.0%     100.0%
                                ---------  ---------  --------   --------

Expenses:
 Direct operating                 1,278.5    1,164.7      56.2%      53.5%
 Depreciation of revenue
  earning equipment                 529.9      496.1      23.3%      22.8%
 Selling, general and
  administrative                    168.0      182.4       7.4%       8.4%
 Interest, net of interest
  income                            205.9      191.5       9.0%       8.8%
                                ---------  ---------  --------   --------
Total expenses                    2,182.3    2,034.7      95.9%      93.5%
                                ---------  ---------  --------   --------
Income before income taxes and
 minority interest                   93.0      141.0       4.1%       6.5%
Provision for taxes on income       (36.1)     (52.5)     (1.6)%     (2.4)%
Minority interest                    (5.7)      (4.8)     (0.2)%     (0.2)%
                                ---------  ---------  --------   --------
Net income                      $    51.2  $    83.7       2.3%       3.9%
                                =========  =========  ========   ========

Weighted average number of
 shares outstanding:
     Basic                          322.7      320.9
     Diluted                        322.7      327.6

Earnings per share:
     Basic                      $    0.16  $    0.26
     Diluted                    $    0.16  $    0.26


                                  Six Months Ended       As a Percent
                                      June 30,         of Total Revenues
                                --------------------  -------------------
                                  2008       2007       2008       2007
                                ---------  ---------  --------   --------
Total revenues                  $ 4,314.4  $ 4,097.2     100.0%     100.0%
                                ---------  ---------  --------   --------

Expenses:
 Direct operating                 2,450.1    2,279.0      56.8%      55.6%
 Depreciation of revenue
  earning equipment               1,063.7      963.9      24.6%      23.5%
 Selling, general and
  administrative                    361.4      382.8       8.4%       9.4%
 Interest, net of interest
  income                            402.1      421.1       9.3%      10.3%
                                ---------  ---------  --------   --------
Total expenses                    4,277.3    4,046.8      99.1%      98.8%
                                ---------  ---------  --------   --------
Income before income taxes and
 minority interest                   37.1       50.4       0.9%       1.2%
Provision for taxes on income       (33.1)     (20.4)     (0.8)%     (0.5)%
Minority interest                   (10.5)      (8.9)     (0.2)%     (0.2)%
                                ---------  ---------  --------   --------
Net income (loss)               $    (6.5) $    21.1      (0.1)%      0.5%
                                =========  =========  ========   ========

Weighted average number of
 shares outstanding:
     Basic                          322.5      320.8
     Diluted                        322.5      324.1

Earnings (loss) per share:
     Basic                      $   (0.02) $    0.07
     Diluted                    $   (0.02) $    0.07



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

                                       Three Months Ended June 30, 2008
                                     -------------------------------------
                                        As                          As
                                     Reported   Adjustments      Adjusted
                                     ---------  -----------      ---------
Total revenues                       $ 2,275.3  $         -      $ 2,275.3
                                     ---------  -----------      ---------

Expenses:
 Direct operating                      1,278.5        (47.7) (a)   1,230.8
 Depreciation of revenue earning
  equipment                              529.9         (4.6) (b)     525.3
 Selling, general and administrative     168.0         12.3  (c)     180.3
 Interest, net of interest income        205.9        (21.7) (d)     184.2
                                     ---------  -----------      ---------
Total expenses                         2,182.3        (61.7)       2,120.6
                                     ---------  -----------      ---------
Income before income taxes and
 minority interest                        93.0         61.7          154.7
Provision for taxes on income            (36.1)       (16.5) (e)     (52.6)
Minority interest                         (5.7)           -           (5.7)
                                     ---------  -----------      ---------
Net income                           $    51.2  $      45.2      $    96.4
                                     =========  ===========      =========

                                       Three Months Ended June 30, 2007
                                     -------------------------------------
                                        As                          As
                                     Reported   Adjustments      Adjusted
                                     ---------  -----------      ---------
Total revenues                       $ 2,175.7  $         -      $ 2,175.7
                                     ---------  -----------      ---------

Expenses:
 Direct operating                      1,164.7        (14.0) (a)   1,150.7
 Depreciation of revenue earning
  equipment                              496.1         (4.2) (b)     491.9
 Selling, general and administrative     182.4          6.1  (c)     188.5
 Interest, net of interest income        191.5         (4.1) (d)     187.4
                                     ---------  -----------      ---------
Total expenses                         2,034.7        (16.2)       2,018.5
                                     ---------  -----------      ---------
Income before income taxes and
 minority interest                       141.0         16.2          157.2
Provision for taxes on income            (52.5)        (2.5) (e)     (55.0)
Minority interest                         (4.8)           -           (4.8)
                                     ---------  -----------      ---------
Net income                           $    83.7  $      13.7      $    97.4
                                     =========  ===========      =========


                                        Six Months Ended June 30, 2008
                                     -------------------------------------
                                        As                          As
                                     Reported   Adjustments      Adjusted
                                     ---------  -----------      ---------
Total revenues                       $ 4,314.4  $         -      $ 4,314.4
                                     ---------  -----------      ---------

Expenses:
 Direct operating                      2,450.1        (80.1) (a)   2,370.0
 Depreciation of revenue earning
  equipment                            1,063.7         (9.6) (b)   1,054.1
 Selling, general and administrative     361.4         (8.7) (c)     352.7
 Interest, net of interest income        402.1        (36.2) (d)     365.9
                                     ---------  -----------      ---------
Total expenses                         4,277.3       (134.6)       4,142.7
                                     ---------  -----------      ---------
Income before income taxes and
   minority interest                      37.1        134.6          171.7
Provision for taxes on income            (33.1)       (25.3) (e)     (58.4)
Minority interest                        (10.5)           -          (10.5)
                                     ---------  -----------      ---------
Net income (loss)                    $    (6.5) $     109.3      $   102.8
                                     =========  ===========      =========


                                        Six Months Ended June 30, 2007
                                     -------------------------------------
                                        As                          As
                                     Reported   Adjustments      Adjusted
                                     ---------  -----------      ---------
Total revenues                       $ 4,097.2  $         -      $ 4,097.2
                                     ---------  -----------      ---------

Expenses:
 Direct operating                      2,279.0        (45.5) (a)   2,233.5
 Depreciation of revenue earning
     equipment                           963.9         (8.5) (b)     955.4
 Selling, general and administrative     382.8        (16.4) (c)     366.4
 Interest, net of interest income        421.1        (52.5) (d)     368.6
                                     ---------  -----------      ---------
Total expenses                         4,046.8       (122.9)       3,923.9
                                     ---------  -----------      ---------
Income before income taxes and
   minority interest                      50.4        122.9          173.3
Provision for taxes on income            (20.4)       (40.3) (e)     (60.7)
Minority interest                         (8.9)           -           (8.9)
                                     ---------  -----------      ---------
Net income                           $    21.1  $      82.6      $   103.7
                                     =========  ===========      =========

(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 June 30, 2008 and 2007, also includes restructuring and
    restructuring related charges of $28.8 million and $12.0 million,
    respectively.  For the six months ended June 30, 2008 and 2007, also
    includes restructuring and restructuring related charges of $38.5
    million and $24.9 million, respectively.  For the three months ended
    June 30, 2008 and 2007, also includes vacation accrual adjustments of
    $(0.7) million and $(16.1) million, respectively.  For the six months
    ended June 30, 2008 and 2007, also includes vacation accrual
    adjustments of $2.4 million and $(16.1) million, respectively.
(b) Represents the increase in depreciation of revenue earning equipment
    based upon its revaluation relating to purchase accounting.
(c) For the three months ended June 30, 2008 and 2007, also includes
    restructuring and  restructuring related charges of $11.3 million and
    $4.7 million, respectively.  For the six months ended June 30, 2008
    and 2007, also includes restructuring and related charges of
    $24.7 million and $24.4 million, respectively.  For the three and six
    months ended June 30, 2008 and 2007, also includes an increase in
    depreciation of property and equipment relating to purchase
    accounting, among other adjustments which are detailed in Table 5.
(d) Represents non-cash debt charges relating to the amortization of
    deferred debt financing costs and debt discounts.  For the three and
    six months ended June 30, 2008,  also includes $2.7 million and $5.0
    million, respectively, associated with the ineffectiveness of our
    interest rate swaps.  For the three months ended June 30, 2007, also
    includes $12.8 million associated with the reversal of the
    ineffectiveness of our interest rate swaps originally recorded in the
    three months ended March 31, 2007 and for the six months ended June
    30,  2007, 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 and six months ended June 30,
    2008, consists of net corporate cash interest of $65.8 million and
    $130.3 million, respectively,  and net fleet interest of $118.4
    million and $235.6 million, respectively, and for the three and six
    months ended June 30, 2007, net corporate interest of $68.6 million
    and $142.6 million, respectively, and net fleet interest of $118.8
    million and $226.0 million, respectively.
(e) 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     Six Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------
Revenues:
  Car rental                    $ 1,830.2  $ 1,740.3  $ 3,456.3  $ 3,270.0
  Equipment rental                  443.3      433.0      854.3      822.9
  Other reconciling items             1.8        2.4        3.8        4.3
                                ---------  ---------  ---------  ---------
                                $ 2,275.3  $ 2,175.7  $ 4,314.4  $ 4,097.2
                                =========  =========  =========  =========

Depreciation of property and
 equipment:
  Car rental                    $    34.2  $    33.8  $    64.6  $    68.0
  Equipment rental                   10.4        9.9       21.1       19.8
  Other reconciling items             1.4        1.6        3.1        3.2
                                ---------  ---------  ---------  ---------
                                $    46.0  $    45.3  $    88.8  $    91.0
                                =========  =========  =========  =========

Amortization of other
 intangible assets:
  Car rental                    $     8.7  $     7.3  $    17.0  $    14.6
  Equipment rental                    8.1        8.1       16.2       16.2
                                ---------  ---------  ---------  ---------
                                $    16.8  $    15.4  $    33.2  $    30.8
                                =========  =========  =========  =========

Income (loss) before income
 taxes and minority interest:
  Car rental                    $   129.4  $   145.5  $   123.6  $   128.7
  Equipment rental                   52.2       83.8       91.6      129.8
  Other reconciling items           (88.6)     (88.3)    (178.1)    (208.1)
                                ---------  ---------  ---------  ---------
                                $    93.0  $   141.0  $    37.1  $    50.4
                                =========  =========  =========  =========


Corporate EBITDA (a) (b):
  Car rental                    $   180.8  $   177.6  $   246.2  $   251.0
  Equipment rental                  197.7      202.0      378.8      376.4
  Other reconciling items            (0.2)      (8.5)     (21.5)     (18.6)
                                ---------  ---------  ---------  ---------
                                $   378.3  $   371.1  $   603.5  $   608.8
                                =========  =========  =========  =========

Adjusted pre-tax income
 (loss) (a) (b):
  Car rental                    $   149.4  $   142.9  $   188.7  $   179.8
  Equipment rental                   85.5       96.7      144.8      162.3
  Other reconciling items           (80.2)     (82.4)    (161.8)    (168.8)
                                ---------  ---------  ---------  ---------
                                $   154.7  $   157.2  $   171.7  $   173.3
                                =========  =========  =========  =========

Adjusted net income
 (loss) (a) (b):
  Car rental                    $    98.6  $    92.9  $   124.5  $   116.9
  Equipment rental                   56.4       62.9       95.6      105.5
  Other reconciling
   items                            (58.6)     (58.4)    (117.3)    (118.7)
                                ---------  ---------  ---------  ---------
                                $    96.4  $    97.4  $   102.8  $   103.7
                                =========  =========  =========  =========

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

Adjusted diluted earnings per
 share (a)                      $    0.30  $    0.30  $    0.32  $    0.32


(a)    Represents a non-GAAP measure, see the accompanying
       reconciliations and definitions.
(b)    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                  Six
                                 Months     Percent    Months     Percent
                                 Ended,     change     Ended,     change
                                or as of     from     or as of     from
                                 June 30, prior year   June 30, prior year
                                   2008     period      2008      period
                                ---------  --------   ---------  --------

Selected Car Rental Operating Data

Worldwide number of transactions
 (in thousands)                     7,460      (2.4)%    14,025      (2.0)%
  Domestic                          5,416      (5.7)%    10,316      (4.6)%
  International                     2,044       7.7%      3,709       6.2%

Worldwide number of transaction
 days (in thousands)               33,279       1.4%     63,517       2.9%
  Domestic                         22,477      (2.2)%    43,740      (0.2)%
  International                    10,802       9.9%     19,777      10.5%

Worldwide rental rate revenue
 per transaction day (a)        $   44.94      (1.9)% $   44.94      (2.3)%
  Domestic                      $   42.10      (0.9)% $   42.58      (1.9)%
  International (b)             $   50.85      (5.1)% $   50.15      (4.1)%

Worldwide average number of
 company-operated cars during
 period                           474,900       0.5%    456,200       1.8%
  Domestic                        316,000      (3.1)%   310,200      (1.3)%
  International                   158,900       8.5%    146,000       9.2%

Worldwide revenue earning
 equipment, net (in millions)   $ 9,498.3       3.0%  $ 9,498.3       3.0%

Selected Worldwide Equipment
 Rental Operating Data

Rental and rental related revenue
 (in millions) (a) (b)          $   387.4      (1.5)% $   755.0       0.1%
Same store revenue growth,
 including initiatives (a) (b)       -1.1%      N/M        -0.8%      N/M
Average acquisition cost of
 revenue earning equipment
 operated during period
 (in millions)                  $ 3,476.7       8.3%  $ 3,478.8      10.2%
Revenue earning equipment,
 net (in millions)              $ 2,601.8       1.0%  $ 2,601.8       1.0%

Other Financial Data (in millions)

Cash flows provided by
 operating activities           $   708.3     (34.2)% $ 1,836.5     (16.5)%
Levered after-tax cash flow
 before fleet growth (a)             74.9     (79.0)%     395.7     (50.3)%
Levered after-tax cash flow
 after fleet growth (a)             305.0     561.6%       72.3     (57.2)%
EBITDA (a)                          885.9       0.2%    1,614.4       4.3%
Corporate EBITDA (a)                378.3       1.9%      603.5      (0.9)%


Selected Balance Sheet Data (in millions)

                                 June 30,            December 31,
                                   2008                  2007
                                ---------             ---------
Cash and equivalents            $   811.4             $   730.2
Total revenue earning
 equipment, net                  12,100.1              10,307.9
Total assets                     20,690.9              19,255.7
Total debt                       12,693.8              11,960.1
Net corporate debt (a)            3,912.4               3,984.7
Net fleet debt (a)                7,808.6               6,584.2
Stockholders' equity              2,975.8               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 EARNINGS MEASURES
                  (In millions, except per share amounts)
                                Unaudited

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

                                     Three Months Ended June 30, 2008
                                ------------------------------------------
                                                        Other
                                   Car     Equipment Reconciling
                                  Rental     Rental     Items      Total
                                ---------  ---------  ---------  ---------
Total revenues:                 $ 1,830.2  $   443.3  $     1.8  $ 2,275.3
                                ---------  ---------  ---------  ---------
Expenses:
 Direct operating and selling,
  general and administrative      1,145.5      281.4       19.6    1,446.5
 Depreciation of revenue
  earning equipment                 448.2       81.7          -      529.9
 Interest, net of interest
  income                            107.1       28.0       70.8      205.9
                                ---------  ---------  ---------  ---------
Total expenses                    1,700.8      391.1       90.4    2,182.3
                                ---------  ---------  ---------  ---------
Income (loss) before income
 taxes and minority interest        129.4       52.2      (88.6)      93.0
Adjustments:
 Purchase accounting (a):
     Direct operating and
      selling, general and
      administrative                 10.3        9.0        0.5       19.8
     Depreciation of revenue
      earning equipment                 -        4.6          -        4.6
 Non-cash debt charges (b)           15.8        2.7        3.2       21.7
 Restructuring charges (c)           12.5       16.7        3.5       32.7
 Restructuring related charges (c)    5.7        0.5        1.2        7.4
 Vacation accrual adjustment (c)     (0.5)      (0.2)         -       (0.7)
 Unrealized gain on derivative (d)   (9.0)         -          -       (9.0)
 Realized gain on derivative (d)    (14.8)         -          -      (14.8)
                                ---------  ---------  ---------  ---------
Adjusted pre-tax income (loss)      149.4       85.5      (80.2)     154.7
Assumed (provision) benefit
 for income taxes of 34%            (50.8)     (29.1)      27.3      (52.6)
Minority interest                       -          -       (5.7)      (5.7)
                                ---------  ---------  ---------  ---------
Adjusted net income (loss)      $    98.6  $    56.4  $   (58.6) $    96.4
                                =========  =========  =========  =========

Pro forma diluted number of
 shares outstanding                                                  325.5

Adjusted diluted earnings per share                              $    0.30


                                     Three Months Ended June 30, 2007
                                ------------------------------------------
                                                        Other
                                   Car     Equipment Reconciling
                                  Rental     Rental     Items      Total
                                ---------  ---------  ---------  ---------
Total revenues:                 $ 1,740.3  $   433.0  $     2.4  $ 2,175.7
                                ---------  ---------  ---------  ---------
Expenses:
 Direct operating and selling,
  general and administrative      1,080.1      245.4       21.6    1,347.1
 Depreciation of revenue
  earning equipment                 426.9       69.2          -      496.1
 Interest, net of interest
  income                             87.8       34.6       69.1      191.5
                                ---------  ---------  ---------  ---------
Total expenses                    1,594.8      349.2       90.7    2,034.7
                                ---------  ---------  ---------  ---------
Income (loss) before income
 taxes and minority interest        145.5       83.8      (88.3)     141.0
Adjustments:
 Purchase accounting (a):
     Direct operating and
      selling, general and
      administrative                  9.1        8.7        0.5       18.3
     Depreciation of revenue
      earning equipment              (0.8)       5.1          -        4.3
 Non-cash debt charges (b)           (1.5)       2.7        2.9        4.1
 Restructuring charges (c)           14.7        1.2        0.8       16.7
 Vacation accrual adjustment (c)    (13.9)      (4.8)      (0.9)     (19.6)
 Unrealized gain on derivative (d)  (10.2)         -          -      (10.2)
 Secondary offering costs (d)           -          -        2.0        2.0
 Management transition costs (d)        -          -        0.6        0.6
                                ---------  ---------  ---------  ---------
Adjusted pre-tax income (loss)      142.9       96.7      (82.4)     157.2
Assumed (provision) benefit
 for income taxes of 35%            (50.0)     (33.8)      28.8      (55.0)
Minority interest                       -          -       (4.8)      (4.8)
                                ---------  ---------  ---------  ---------
Adjusted net income (loss)      $    92.9  $    62.9  $   (58.4) $    97.4
                                =========  =========  =========  =========

Pro forma diluted number of
 shares outstanding                                                  324.8

Adjusted diluted earnings per share                              $    0.30


                                      Six Months Ended June 30, 2008
                                ------------------------------------------
                                                        Other
                                   Car     Equipment Reconciling
                                  Rental     Rental     Items      Total
                                ---------  ---------  ---------  ---------
Total revenues:                 $ 3,456.3  $   854.3  $     3.8  $ 4,314.4
                                ---------  ---------  ---------  ---------
Expenses:
 Direct operating and selling,
  general and administrative      2,237.6      533.0       40.9    2,811.5
 Depreciation of revenue
  earning equipment                 895.5      168.2          -    1,063.7
 Interest, net of interest
  income                            199.6       61.5      141.0      402.1
                                ---------  ---------  ---------  ---------
Total expenses                    3,332.7      762.7      181.9    4,277.3
                                ---------  ---------  ---------  ---------
Income (loss) before income
 taxes and minority interest        123.6       91.6     (178.1)      37.1
Adjustments:
 Purchase accounting (a):
     Direct operating and
      selling, general and
      administrative                 20.7       17.9        1.0       39.6
     Depreciation of revenue
      earning equipment              (0.1)       9.7          -        9.6
 Non-cash debt charges (b)           24.4        5.4        6.4       36.2
 Restructuring charges (c)           28.3       18.4        5.6       52.3
 Restructuring related charges (c)    7.8        1.2        1.9       10.9
 Vacation accrual adjustment (c)      1.8        0.6        0.1        2.5
 Unrealized gain on derivative (d)   (3.0)         -          -       (3.0)
 Realized gain on derivative (d)    (14.8)         -          -      (14.8)
 Management transition costs (d)        -          -        1.3        1.3
                                ---------  ---------  ---------  ---------
Adjusted pre-tax income (loss)      188.7      144.8     (161.8)     171.7
Assumed (provision) benefit
 for income taxes of 34%            (64.2)     (49.2)      55.0      (58.4)
Minority interest                       -          -      (10.5)     (10.5)
                                ---------  ---------  ---------  ---------
Adjusted net income (loss)      $   124.5  $    95.6  $  (117.3) $   102.8
                                =========  =========  =========  =========

Pro forma diluted number of
 shares outstanding                                                  325.5

Adjusted diluted earnings per share                              $    0.32


                                     Six Months Ended June 30, 2007
                                ------------------------------------------
                                                        Other
                                   Car     Equipment Reconciling
                                  Rental     Rental     Items      Total
                                ---------  ---------  ---------  ---------
Total revenues:                 $ 3,270.0  $   822.9  $     4.3  $ 4,097.2
                                ---------  ---------  ---------  ---------
Expenses:
 Direct operating and selling,
  general and administrative      2,125.3      482.4       54.1    2,661.8
 Depreciation of revenue
  earning equipment                 822.8      141.1          -      963.9
 Interest, net of interest
  income                            193.2       69.6      158.3      421.1
                                ---------  ---------  ---------  ---------
Total expenses                    3,141.3      693.1      212.4    4,046.8
                                ---------  ---------  ---------  ---------
Income (loss) before income
 taxes and minority interest        128.7      129.8     (208.1)      50.4
Adjustments:
 Purchase accounting (a):
     Direct operating and
      selling, general and
      administrative                 18.7       17.5        0.9       37.1
     Depreciation of revenue
      earning equipment              (2.7)      11.3          -        8.6
 Non-cash debt charges (b)           24.8        5.5       22.2       52.5
 Restructuring charges (c)           34.4        3.0       11.9       49.3
 Vacation accrual adjustment (c)    (13.9)      (4.8)      (0.9)     (19.6)
 Unrealized gain on derivative (d)  (10.2)         -          -      (10.2)
 Secondary offering costs (d)           -          -        2.0        2.0
 Management transition costs (d)        -          -        3.2        3.2
                                ---------  ---------  ---------  ---------
Adjusted pre-tax income (loss)      179.8      162.3     (168.8)     173.3
Assumed (provision) benefit
 for income taxes of 35%            (62.9)     (56.8)      59.0      (60.7)
Minority interest                       -          -       (8.9)      (8.9)
                                ---------  ---------  ---------  ---------
Adjusted net income (loss)      $   116.9  $   105.5  $  (118.7) $   103.7
                                =========  =========  =========  =========

Pro forma diluted number of
 shares outstanding                                                  324.8

Adjusted diluted earnings per share                              $    0.32


(a) Represents the purchase accounting effects of the acquisition of all
    of Hertz's common stock on December 21, 2005, and any subsequent
    acquisitions on our results of operations relating to increased
    depreciation and amortization of tangible and intangible assets and
    accretion of revalued workers' compensation and public liability and
    property damage liabilities.
(b) Represents non-cash debt charges relating to the amortization of
    deferred debt financing costs and debt discounts.  For the three and
    six months ended June 30, 2008, also includes $2.7 million and $5.0
    million, respectively, associated with the ineffectiveness of our
    interest rate swaps.  For the three months ended June 30, 2007, also
    includes $12.8 million associated with the reversal of the
    ineffectiveness of our interest rate swaps originally recorded in the
    three months ended March 31, 2007 and for the six months ended June
    30, 2007, 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 EARNINGS MEASURES
                              (In millions)
                                Unaudited

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


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

Income (loss) before income
 taxes and minority interest    $ 129.4  $      52.2  $     (88.6) $  93.0
  Depreciation and amortization   491.1        100.2          1.4    592.7
  Interest, net of interest
   income                         107.1         28.0         70.8    205.9
  Minority interest                   -            -         (5.7)    (5.7)
                                -------  -----------  -----------  -------
EBITDA                            727.6        180.4        (22.1)   885.9
Adjustments:
  Car rental fleet interest      (108.3)           -            -   (108.3)
  Car rental fleet depreciation  (448.2)           -            -   (448.2)
  Non-cash expenses and charges
   (a)                              6.8          0.3         17.2     24.3
  Extraordinary, unusual or
   non-recurring gains and
   losses (b)                       2.9         17.0          4.7     24.6
                                -------  -----------  -----------  -------
Corporate EBITDA                $ 180.8  $     197.7  $      (0.2)   378.3
                                =======  ===========  ===========
  Equipment rental maintenance
   capital expenditures, net                                         (73.4)
  Non-fleet capital
   expenditures, net                                                 (47.0)
  Changes in working capital                                         (17.8)
  Changes in other assets and
   liabilities                                                       (70.1)
                                                                   -------
Unlevered pre-tax cash flow (c)                                      170.0
  Corporate net cash interest                                        (89.1)
  Corporate cash taxes                                                (6.0)
                                                                   -------
Levered after-tax cash flow
 before fleet growth (c)                                              74.9
  Equipment rental fleet growth
   capital expenditures                                               34.2
  Car rental net fleet equity
   requirement                                                       195.9
                                                                   -------
Levered after-tax cash flow
 after fleet growth (c)                                            $ 305.0
                                                                   =======


                                     Three Months Ended June 30, 2007
                                ------------------------------------------
                                                         Other
                                   Car    Equipment   Reconciling
                                 Rental    Rental        Items      Total
                                -------  -----------  -----------  -------

Income (loss) before income
 taxes and minority interest    $ 145.5  $      83.8  $     (88.3) $ 141.0
  Depreciation and amortization   468.0         87.2          1.6    556.8
  Interest, net of interest
   income                          87.8         34.6         69.1    191.5
  Minority interest                   -            -         (4.8)    (4.8)
                                -------  -----------  -----------  -------
EBITDA                            701.3        205.6        (22.4)   884.5
Adjustments:
  Car rental fleet interest       (85.4)           -            -    (85.4)
  Car rental fleet depreciation  (426.9)           -            -   (426.9)
  Non-cash expenses and charges
   (a)                            (12.2)           -         11.4     (0.8)
  Extraordinary, unusual or
   non-recurring gains and
   losses (b)                       0.8         (3.6)         2.5     (0.3)
                                -------  -----------  -----------  -------
Corporate EBITDA                $ 177.6  $     202.0  $      (8.5)   371.1
                                =======  ===========  ===========
  Equipment rental maintenance
   capital expenditures, net                                         (61.6)
  Non-fleet capital
   expenditures, net                                                 (52.9)
  Changes in working capital                                         192.0
  Changes in other assets and
   liabilities                                                        10.7
                                                                   -------
Unlevered pre-tax cash flow (c)                                      459.3
  Corporate net cash interest                                        (97.8)
  Corporate cash taxes                                                (4.6)
                                                                   -------
Levered after-tax cash flow
 before fleet growth (c)                                             356.9
  Equipment rental fleet growth
   capital expenditures                                             (162.5)
  Car rental net fleet equity
   requirement                                                      (148.3)
                                                                   -------
Levered after-tax cash flow
 after fleet growth (c)                                            $  46.1
                                                                   =======


                                       Six Months Ended June 30, 2008
                                ------------------------------------------
                                                         Other
                                  Car     Equipment   Reconciling
                                 Rental     Rental       Items      Total
                                -------  -----------  -----------  -------

Income (loss) before income
 taxes and minority interest    $ 123.6  $      91.6  $    (178.1) $  37.1
  Depreciation and amortization   977.1        205.5          3.1  1,185.7
  Interest, net of interest
   income                         199.6         61.5        141.0    402.1
  Minority interest                   -            -        (10.5)   (10.5)
                                -------  -----------  -----------  -------
EBITDA                          1,300.3        358.6        (44.5) 1,614.4
Adjustments:
  Car rental fleet interest      (202.3)           -            -   (202.3)
  Car rental fleet depreciation  (895.5)           -            -   (895.5)
  Non-cash expenses and charges
   (a)                             20.6            -         14.1     34.7
  Extraordinary, unusual or
   non-recurring gains and
   losses (b)                      23.1         20.2          8.9     52.2
                                -------  -----------  -----------  -------
Corporate EBITDA                $ 246.2  $     378.8  $     (21.5)   603.5
                                =======  ===========  ===========
  Equipment rental maintenance
   capital expenditures, net                                        (151.5)
  Non-fleet capital
   expenditures, net                                                 (94.3)
  Changes in working capital                                         331.3
  Changes in other assets and
   liabilities                                                       (95.2)
                                                                   -------
Unlevered pre-tax cash flow (c)                                      593.8
  Corporate net cash interest                                       (183.2)
  Corporate cash taxes                                               (14.9)
                                                                   -------
Levered after-tax cash flow
 before fleet growth (c)                                             395.7
  Equipment rental fleet growth
   capital expenditures                                               86.6
  Car rental net fleet equity
   requirement                                                      (410.0)
                                                                   -------
Levered after-tax cash flow
 after fleet growth (c)                                            $  72.3
                                                                   =======


                                      Six Months Ended June 30, 2007
                                ------------------------------------------
                                                         Other
                                   Car    Equipment   Reconciling
                                 Rental     Rental       Items      Total
                                -------  -----------  -----------  -------

Income (loss) before income
 taxes and minority interest    $ 128.7  $     129.8  $    (208.1) $  50.4
  Depreciation and amortization   905.4        177.1          3.2  1,085.7
  Interest, net of interest
   income                         193.2         69.6        158.3    421.1
  Minority interest                   -            -         (8.9)    (8.9)
                                -------  -----------  -----------  -------
EBITDA                          1,227.3        376.5        (55.5) 1,548.3
Adjustments:
  Car rental fleet interest      (188.2)           -            -   (188.2)
  Car rental fleet depreciation  (822.8)           -            -   (822.8)
  Non-cash expenses and charges
   (a)                             14.2          1.7         20.7     36.6
  Extraordinary, unusual or
   non-recurring gains and
   losses (b)                      20.5         (1.8)        16.2     34.9
                                -------  -----------  -----------  -------
Corporate EBITDA                $ 251.0  $     376.4  $     (18.6)   608.8
                                =======  ===========  ===========
  Equipment rental maintenance
   capital expenditures, net                                        (124.2)
  Non-fleet capital
   expenditures, net                                                 (84.2)
  Changes in working capital                                         638.0
  Changes in other assets and
   liabilities                                                       (33.5)
                                                                   -------
Unlevered pre-tax cash flow (c)                                    1,004.9
  Corporate net cash interest                                       (200.7)
  Corporate cash taxes                                                (7.8)
                                                                   -------
Levered after-tax cash flow
 before fleet growth (c)                                             796.4
  Equipment rental fleet growth
   capital expenditures                                             (154.8)
  Car rental net fleet equity
   requirement                                                      (472.6)
                                                                   -------
Levered after-tax cash flow
 after fleet growth (c)                                            $ 169.0
                                                                   =======

(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 June 30, 2008
                                ------------------------------------------
                                                         Other
                                   Car    Equipment   Reconciling
                                 Rental     Rental       Items      Total
                                -------  -----------  -----------  -------

Non-cash amortization of debt
 costs included in car rental
 fleet interest                 $  15.4  $         -  $         -  $  15.4
Non-cash stock-based employee
 compensation charges                 -            -          7.5      7.5
Non-cash charges for
 workers' compensation              0.4          0.3            -      0.7
Non-cash charges for pension          -            -          4.5      4.5
Non-cash charges for public
 liability and property damage        -            -          5.2      5.2
Unrealized gain on derivative      (9.0)           -            -     (9.0)
                                -------  -----------  -----------  -------
Total non-cash expenses and
 charges                        $   6.8  $       0.3  $      17.2  $  24.3
                                =======  ===========  ===========  =======

NON-CASH EXPENSES AND CHARGES
                                       Three Months Ended June 30, 2007
                                ------------------------------------------
                                                         Other
                                   Car    Equipment   Reconciling
                                 Rental     Rental       Items      Total
                                -------  -----------  -----------  -------

Non-cash amortization of debt
 costs included in car rental
 fleet interest                 $  (2.0) $         -  $         -  $  (2.0)
Non-cash stock-based employee
 compensation charges                 -            -          7.7      7.7
Non-cash charges for pension          -            -          0.4      0.4
Non-cash charges for public
 liability and property damage        -            -          3.3      3.3
Unrealized gain on derivative     (10.2)           -            -    (10.2)
                                -------  -----------  -----------  -------
Total non-cash expenses and
 charges                        $ (12.2) $         -  $      11.4  $  (0.8)
                                =======  ===========  ===========  =======

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

Non-cash amortization of debt
 costs included in car rental
 fleet interest                 $  23.6  $         -  $         -  $  23.6
Non-cash stock-based employee
 compensation charges                 -            -         13.5     13.5
Non-cash charges for pension          -            -          0.6      0.6
Unrealized gain on derivative      (3.0)           -            -     (3.0)
                                -------  -----------  -----------  -------
Total non-cash expenses and
 charges                        $  20.6  $         -  $      14.1  $  34.7
                                =======  ===========  ===========  =======

NON-CASH EXPENSES AND CHARGES
                                      Six Months Ended June 30, 2007
                                ------------------------------------------
                                                         Other
                                   Car    Equipment   Reconciling
                                 Rental     Rental       Items      Total
                                -------  -----------  -----------  -------

Non-cash amortization of debt
 costs included in car rental
 fleet interest                 $  23.7  $         -  $         -  $  23.7
Non-cash stock-based employee
 compensation charges                 -            -         13.8     13.8
Non-cash charges for workers'
 compensation                       0.4          1.7          0.1      2.2
Non-cash charges for pension          -            -          1.7      1.7
Non-cash charges for public
 liability and property damage        -            -          5.1      5.1
Unrealized gain on derivative      (9.9)           -            -     (9.9)
                                -------  -----------  -----------  -------
Total non-cash expenses and
 charges                        $  14.2  $       1.7  $      20.7  $  36.6
                                =======  ===========  ===========  =======

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

EXTRAORDINARY, UNUSUAL OR NON-RECURRING ITEMS

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

Restructuring charges           $  12.5  $      16.7  $       3.5  $  32.7
Restructuring related charges       5.7          0.5          1.2      7.4
Vacation accrual adjustment        (0.5)        (0.2)           -     (0.7)
Realized gain on derivative       (14.8)           -            -    (14.8)
                                -------  -----------  -----------  -------
Total extraordinary, unusual or
 non-recurring items            $   2.9  $      17.0  $       4.7  $  24.6
                                =======  ===========  ===========  =======

EXTRAORDINARY, UNUSUAL OR NON-RECURRING ITEMS

                                      Three Months Ended June 30, 2007
                                ------------------------------------------
                                                         Other
                                   Car    Equipment   Reconciling
                                 Rental     Rental       Items      Total
                                -------  -----------  -----------  -------

Restructuring charges           $  14.7  $       1.2  $       0.8  $  16.7
Vacation accrual adjustment       (13.9)        (4.8)        (0.9)   (19.6)
Secondary offering costs              -            -          2.0      2.0
Management transition costs           -            -          0.6      0.6
                                -------  -----------  -----------  -------
Total extraordinary, unusual or
 non-recurring items            $   0.8  $      (3.6) $       2.5  $  (0.3)
                                =======  ===========  ===========  =======

EXTRAORDINARY, UNUSUAL OR NON-RECURRING ITEMS

                                      Six Months Ended June 30, 2008
                                ------------------------------------------
                                                         Other
                                   Car    Equipment   Reconciling
                                 Rental     Rental       Items      Total
                                -------  -----------  -----------  -------

Restructuring charges           $  28.3  $      18.4  $       5.6  $  52.3
Restructuring related charges       7.8          1.2          1.9     10.9
Vacation accrual adjustment         1.8          0.6          0.1      2.5
Realized gain on derivative       (14.8)           -            -    (14.8)
Management transition costs           -            -          1.3      1.3
                                -------  -----------  -----------  -------
Total extraordinary, unusual or
 non-recurring items            $  23.1  $      20.2  $       8.9  $  52.2
                                =======  ===========  ===========  =======

EXTRAORDINARY, UNUSUAL OR NON-RECURRING ITEMS

                                      Six Months Ended June 30, 2007
                                ------------------------------------------
                                                         Other
                                   Car    Equipment  Reconciling
                                 Rental     Rental       Items      Total
                                -------  -----------  -----------  -------

Restructuring charges           $  34.4  $       3.0  $      11.9  $  49.3
Vacation accrual adjustment       (13.9)        (4.8)        (0.9)   (19.6)
Secondary offering costs              -            -          2.0      2.0
Management transition costs           -            -          3.2      3.2
                                -------  -----------  -----------  -------
Total extraordinary, unusual or
 non-recurring items            $  20.5  $      (1.8) $      16.2  $  34.9
                                =======  ===========  ===========  =======

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




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

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


                                     Three Months Ended June 30, 2008
                                ------------------------------------------
                                                         Other
                                  Car     Equipment   Reconciling
                                Rental     Rental        Items      Total
                                -------  -----------  -----------  -------
Adjusted pre-tax income (loss)
 (a)                            $ 149.4  $      85.5  $     (80.2) $ 154.7
    Depreciation of property
    and equipment                  34.2         10.4          1.4     46.0
    Amortization of other
     intangible assets              8.7          8.1            -     16.8
    Equipment rental fleet
     depreciation                     -         81.7            -     81.7
    Interest, net of interest
     income                       107.1         28.0         70.8    205.9
    Car rental fleet interest    (108.3)           -            -   (108.3)
    Non-cash debt charges         (15.8)        (2.7)        (3.2)   (21.7)
    Non-cash amortization of
     debt costs included in
     car rental fleet interest     15.4            -            -     15.4
    Purchase accounting           (10.3)       (13.6)        (0.5)   (24.4)
    Non-cash stock-based
     employee compensation
     charges                          -            -          7.5      7.5
    Non-cash charges for
     workers' compensation          0.4          0.3            -      0.7
    Non-cash charges for
     pension                          -            -          4.5      4.5
    Non-cash charges for public
     liability and property
     damage                           -            -          5.2      5.2
    Minority interest                 -            -         (5.7)    (5.7)
                                -------  -----------  -----------  -------
Corporate EBITDA (a)            $ 180.8  $     197.7  $      (0.2) $ 378.3
                                =======  ===========  ===========  =======


                                      Three Months Ended June 30, 2007
                                ------------------------------------------
                                                         Other
                                  Car     Equipment   Reconciling
                                Rental     Rental        Items      Total
                                -------  -----------  -----------  -------
Adjusted pre-tax income (loss)
 (a)                            $ 142.9  $      96.7  $     (82.4) $ 157.2
    Depreciation of property
     and equipment                 33.8          9.9          1.6     45.3
    Amortization of other
     intangible assets              7.3          8.1            -     15.4
    Equipment rental fleet
     depreciation                     -         69.2            -     69.2
    Interest, net of interest
     income                        87.8         34.6         69.1    191.5
    Car rental fleet interest     (85.4)           -            -    (85.4)
    Non-cash debt charges           1.5         (2.7)        (2.9)    (4.1)
    Non-cash amortization of
     debt costs included in car
     rental fleet interest         (2.0)           -            -     (2.0)
    Purchase accounting            (8.3)       (13.8)        (0.5)   (22.6)
    Non-cash stock-based
     employee compensation
     charges                          -            -          7.7      7.7
    Non-cash charges for
     pension                          -            -          0.4      0.4
    Non-cash charges for public
     liability and property
     damage                           -            -          3.3      3.3
    Minority interest                 -            -         (4.8)    (4.8)
                                -------  -----------  -----------  -------
Corporate EBITDA (a)            $ 177.6  $     202.0  $      (8.5) $ 371.1
                                =======  ===========  ===========  =======

                                      Six Months Ended June 30, 2008
                                ------------------------------------------
                                                         Other
                                  Car     Equipment   Reconciling
                                Rental     Rental        Items      Total
                                -------  -----------  -----------  -------
Adjusted pre-tax income (loss)
 (a)                            $ 188.7  $     144.8  $    (161.8) $ 171.7
    Depreciation of property
     and equipment                 64.6         21.1          3.1     88.8
    Amortization of other
     intangible assets             17.0         16.2            -     33.2
    Equipment rental fleet
     depreciation                     -        168.2            -    168.2
    Interest, net of interest
     income                       199.6         61.5        141.0    402.1
    Car rental fleet interest    (202.3)           -            -   (202.3)
    Non-cash debt charges         (24.4)        (5.4)        (6.4)   (36.2)
    Non-cash amortization of
     debt costs included in car
     rental fleet interest         23.6            -            -     23.6
    Purchase accounting           (20.6)       (27.6)        (1.0)   (49.2)
    Non-cash stock-based
     employee compensation
     charges                          -            -         13.5     13.5
    Non-cash charges for
     pension                          -            -          0.6      0.6
    Minority interest                 -            -        (10.5)   (10.5)
                                -------  -----------  -----------  -------
Corporate EBITDA (a)            $ 246.2  $     378.8  $     (21.5) $ 603.5
                                =======  ===========  ===========  =======

                                      Six Months Ended June 30, 2007
                                ------------------------------------------
                                                         Other
                                  Car     Equipment   Reconciling
                                Rental     Rental        Items      Total
                                -------  -----------  -----------  -------
Adjusted pre-tax income (loss)
 (a)                            $ 179.8  $     162.3  $    (168.8) $ 173.3
    Depreciation of property
     and equipment                 68.0         19.8          3.2     91.0
    Amortization of other
     intangible assets             14.6         16.2            -     30.8
    Equipment rental fleet
     depreciation                     -        141.1            -    141.1
    Interest, net of interest
     income                       193.2         69.6        158.3    421.1
    Car rental fleet interest    (188.2)           -            -   (188.2)
    Non-cash debt charges         (24.8)        (5.5)       (22.2)   (52.5)
    Non-cash amortization of
     debt costs included in car
     rental fleet interest         23.7            -            -     23.7
    Purchase accounting           (16.0)       (28.8)        (0.9)   (45.7)
    Non-cash stock-based
     employee compensation
     charges                          -            -         13.8     13.8
    Non-cash charges for
     workers' compensation          0.4          1.7          0.1      2.2
    Non-cash charges for
     pension                          -            -          1.7      1.7
    Non-cash charges for public
     liability and property
     damage                           -            -          5.1      5.1
    Unrealized loss on
     derivative                     0.3            -            -      0.3
    Minority interest                 -            -         (8.9)    (8.9)
                                -------  -----------  -----------  -------
Corporate EBITDA (a)            $ 251.0  $     376.4  $     (18.6) $ 608.8
                                =======  ===========  ===========  =======

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



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

RECONCILIATION FROM OPERATING CASH FLOWS TO EBITDA:

                                         Three Months Ended
                                              June 30,
                                      ------------------------
                                         2008         2007
                                      ----------  ------------

Net cash provided by operating
 activities                           $    708.3  $    1,076.1
    Amortization of debt and
     debt modification costs               (19.0)        (16.8)
    Provision for losses on
     doubtful accounts                      (7.3)         (3.4)
    Unrealized gain on derivative            9.0          10.2
    Gain on sale of property and
     equipment                               2.2           1.6
    Gain (loss) on ineffectiveness
     of interest rate swaps                 (2.7)         12.8
    Stock-based employee
     compensation charges                   (7.5)         (7.7)
    Asset writedowns                       (10.6)            -
    Minority interest                       (5.7)         (4.8)
    Deferred income taxes                  (33.6)        (40.1)
    Provision for taxes on income           36.1          52.5
    Interest, net of interest income       205.9         191.5
    Net changes in assets and
     liabilities                            10.8        (387.4)
                                      ----------  ------------
EBITDA                                $    885.9  $      884.5
                                      ==========  ============


                                          Six Months Ended
                                              June 30,
                                      ------------------------
                                        2008          2007
                                      ----------  ------------

Net cash provided by operating
 activities                           $  1,836.5  $    2,199.5
    Amortization of debt and
     debt modification costs               (31.2)        (52.4)
    Provision for losses on
     doubtful accounts                     (13.3)         (6.3)
    Unrealized gain on derivative            3.0           9.9
    Gain on sale of property and
     equipment                               7.6           3.0
    Loss on ineffectiveness of
     interest rate swaps                    (5.0)            -
    Stock-based employee
     compensation charges                  (13.5)        (13.8)
    Asset writedowns                       (10.6)            -
    Minority interest                      (10.5)         (8.9)
    Deferred income taxes                  (20.8)        (15.9)
    Provision for taxes on income           33.1          20.4
    Interest, net of interest income       402.1         421.1
    Net changes in assets and
     liabilities                          (563.0)     (1,008.3)
                                      ----------  ------------
EBITDA                                $  1,614.4  $    1,548.3
                                      ==========  ============


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

Corporate Debt
Debt, less:                           $ 12,693.8  $   11,960.1  $ 12,452.5
    U.S. Fleet Debt and
     Pre-Acquisition Notes               4,698.0       4,603.5     5,198.2
    International Fleet Debt             2,338.4       1,912.4     1,937.4
    U.K. Leveraged Financing               311.1         222.7           -
    Fleet Financing Facility               158.1         170.4       178.1
    Canadian Fleet Financing Facility      245.0         155.4       223.4
    Other International Facilities         116.4          92.9        81.6
                                      ----------  ------------  ----------
      Fleet Debt                      $  7,867.0  $    7,157.3  $  7,618.7
                                      ==========  ============  ==========
      Corporate Debt                  $  4,826.8  $    4,802.8  $  4,833.8
                                      ==========  ============  ==========

Corporate Restricted Cash
Restricted Cash, less:                $    161.4  $      661.0  $    212.2
    Restricted Cash Associated with
     Fleet Debt                            (58.4)       (573.1)     (148.3)
                                      ----------  ------------  ----------
      Corporate Restricted Cash       $    103.0  $       87.9  $     63.9
                                      ==========  ============  ==========

Net Corporate Debt
Corporate Debt, less:                 $  4,826.8  $    4,802.8  $  4,833.8
    Cash and Equivalents                  (811.4)       (730.2)     (401.6)
    Corporate Restricted Cash             (103.0)        (87.9)      (63.9)
                                      ----------  ------------  ----------
      Net Corporate Debt              $  3,912.4  $    3,984.7  $  4,368.3
                                      ==========  ============  ==========

Net Fleet Debt
Fleet Debt, less:                     $  7,867.0  $    7,157.3  $  7,618.7
    Restricted Cash Associated with
     Fleet Debt                            (58.4)       (573.1)     (148.3)
                                      ----------  ------------  ----------
      Net Fleet Debt                  $  7,808.6  $    6,584.2  $  7,470.4
                                      ==========  ============  ==========

CAR RENTAL RATE REVENUE PER TRANSACTION DAY (a)
                                         Three Months Ended
                                              June 30,
                                      ------------------------
                                        2008          2007
                                      ----------  ------------
Car rental revenue per statement of
 operations (b)                       $  1,795.8  $    1,711.7
Non-rental rate revenue (c)               (270.7)       (253.5)
Foreign currency adjustment                (29.6)         45.7
                                      ----------  ------------
Rental rate revenue                   $  1,495.5  $    1,503.9
                                      ==========  ============
Transactions days (in thousands)          33,279        32,817
Rental rate revenue per transaction
 day (in whole dollars)               $    44.94  $      45.83

                                          Six Months Ended
                                             June 30,
                                      ------------------------
                                         2008          2007
                                      ----------  ------------
Car rental revenue per statement of
 operations (b)                       $  3,393.8  $    3,216.8
Non-rental rate revenue (c)               (499.0)       (471.0)
Foreign currency adjustment                (40.4)         92.7
                                      ----------  ------------
Rental rate revenue                   $  2,854.4  $    2,838.5
                                      ==========  ============
Transactions days (in thousands)          63,517        61,729
Rental rate revenue per transaction
 day (in whole dollars)               $    44.94  $      45.98

EQUIPMENT RENTAL AND RENTAL RELATED REVENUE (a)
                                          Three Months Ended
                                              June 30,
                                      ------------------------
                                         2008          2007
                                      ----------  ------------
Equipment rental revenue per
 statement of operations              $    443.1  $      432.8
Equipment sales and other revenue          (50.9)        (49.5)
Foreign currency adjustment                 (4.8)          9.9
                                      ----------  ------------
Rental and rental related revenue     $    387.4  $      393.2
                                      ==========  ============

                                          Six Months Ended
                                              June 30,
                                      ------------------------
                                         2008          2007
                                      ----------  ------------
Equipment rental revenue per
 statement of operations              $    853.9  $      822.6
Equipment sales and other revenue          (92.6)        (91.3)
Foreign currency adjustment                 (6.3)         23.0
                                      ----------  ------------
Rental and rental related revenue     $    755.0  $      754.3
                                      ==========  ============


(a)    Based on 12/31/07 foreign exchange rates.
(b)    Includes U.S. off-airport revenues of $244.1 million and $238.4
       million for the three months ended June 30, 2008 and 2007,
       respectively, and $476.5 million and $456.4 million for the six
       months ended June 30, 2008 and 2007, respectively.
(c)    Consists of domestic revenues of $182.9 million and $171.8 million
       and international revenues of $87.8 million and $81.7 million for
       the three months ended June 30, 2008 and 2007, respectively, and
       domestic revenues of $343.0 million and $324.4 million and
       international revenues of $156.0 million and $146.6 million for
       the six months ended June 30, 2008 and 2007, respectively.



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

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


                          C-B+A         A         B         C
                       -----------
                       Last Twelve    Six       Six
                         Months      Months    Months    Year
                         Ended       Ended     Ended     Ended
                         June 30,   June 30,  June 30,  Dec. 31,
                           2008       2008      2007      2007
                       -----------  --------  --------  --------

Income before income
 taxes and minority
 interest              $     373.5  $   37.1  $   50.4  $  386.8
    Depreciation and
     amortization          2,343.1   1,185.7   1,085.7   2,243.1
    Interest, net of
     interest income         856.4     402.1     421.1     875.4
    Minority interest        (21.3)    (10.5)     (8.9)    (19.7)
                       -----------  --------  --------  --------
EBITDA                     3,551.7   1,614.4   1,548.3   3,485.6
Adjustments:
    Car rental fleet
     interest               (441.9)   (202.3)   (188.2)   (427.8)
    Car rental
     fleet depreciation   (1,768.1)   (895.5)   (822.8) (1,695.4)
    Non-cash expenses
     and charges             100.3      34.7      36.6     102.2
    Non-cash expenses
     and charges to
     arrive at LTM (a)        4.7         -         -         -
    Extraordinary,
     unusual or
     non-recurring
     gains and losses         94.2      52.2      34.9      76.9
                       -----------  --------  --------  --------
Corporate EBITDA           1,540.9     603.5     608.8   1,541.5
    Equipment rental
     maintenance
     capital
     expenditures, net      (300.1)   (151.5)   (124.2)   (272.8)
    Non-fleet capital
     expenditures, net      (164.7)    (94.3)    (84.2)   (154.6)
    Changes in working
     capital (b)             (73.3)    331.3     638.0     233.4
    Changes in other
     assets and
     liabilities (b)        (139.0)    (95.2)    (33.5)    (77.3)
    Changes in other
     assets and
     liabilities to
     arrive at LTM (a)        (4.7)        -         -         -
                       -----------  --------  --------  --------
Unlevered pre-tax
 cash flow (c)               859.1     593.8   1,004.9   1,270.2
    Corporate net cash
     interest               (382.1)   (183.2)   (200.7)   (399.6)
    Corporate cash
     taxes                   (35.4)    (14.9)     (7.8)    (28.3)
                       -----------  --------  --------  --------
Levered after-tax cash
 flow before fleet
 growth (c)                  441.6     395.7     796.4     842.3
    Equipment rental
     fleet growth
     capital
     expenditures            (40.4)     86.6    (154.8)   (281.8)
    Car rental net
     fleet
     equity requirement       54.7    (410.0)   (472.6)     (7.9)
                       -----------  --------  --------  --------
Levered after-tax cash
 flow after fleet
 growth(c)             $     455.9  $   72.3  $  169.0  $  552.6
                       ===========  ========  ========  ========



                          C-B+A        A         B         C
                       -----------
                       Last Twelve    Six       Six                Three
                         Months      Months    Months    Year      Months
                         Ended       Ended     Ended     Ended     Ended
                        June 30,    June 30,  June 30,  Dec. 31,  Dec. 31,
                          2007        2007      2006      2006      2006
                       -----------  --------  --------  --------  --------

Income before income
 taxes and minority
 interest              $     257.0  $   50.4  $   (6.0) $  200.6  $   42.7
    Depreciation and
     amortization          2,128.0   1,085.7     973.8   2,016.1     510.4
    Interest, net of
     interest income         898.9     421.1     422.9     900.7     228.1
    Minority interest        (18.3)     (8.9)     (7.3)    (16.7)     (4.4)
                       -----------  --------  --------  --------  --------
EBITDA                     3,265.6   1,548.3   1,383.4   3,100.7     776.8
Adjustments:
    Car rental fleet
     interest               (391.9)   (188.2)   (196.3)   (400.0)    (95.9)
    Car rental
     fleet depreciation   (1,585.8)   (822.8)   (716.6) (1,479.6)   (369.5)
    Non-cash expenses
     and charges             102.3      36.6      64.9     130.6      29.0
    Non-cash expenses
     and charges
     to arrive at LTM(a)      (3.5)        -         -         -         -
    Extraordinary,
     unusual or
     non-recurring
     gains and losses         64.1      34.9      (5.4)     23.8      25.0
    Sponsors' fees             1.5         -       1.7       3.2       0.7
                       -----------  --------  --------  --------  --------
Corporate EBITDA           1,452.3     608.8     531.7   1,378.7     366.1
    Equipment rental
     maintenance
     capital
     expenditures, net      (251.5)   (124.2)   (109.2)   (236.5)    (63.2)
    Non-fleet capital
     expenditures, net      (148.1)    (84.2)   (111.4)   (175.3)    (33.6)
    Changes in working
     capital                 246.8     638.0     406.5      15.3     100.6
    Changes in other
     assets
     and liabilities        (139.2)    (33.5)     18.3     (87.4)    (94.7)
    Changes in other
     assets and
     liabilities to
     arrive at LTM (a)         3.5         -         -         -         -
                       -----------  --------  --------  --------  --------
Unlevered pre-tax
 cash flow (c)             1,163.8   1,004.9     735.9     894.8     275.2
    Corporate net cash
     interest               (418.7)   (200.7)   (212.3)   (430.3)   (107.6)
    Corporate cash
     taxes                   (29.4)     (7.8)    (12.0)    (33.6)    (17.1)
                       -----------  --------  --------  --------  --------
Levered after-tax cash
 flow before fleet
 growth(c)                   715.7     796.4     511.6     430.9     150.5
    Equipment rental
     fleet growth
     capital
     expenditures           (144.1)   (154.8)   (403.6)   (392.9)     74.5
    Car rental net
     fleet
     equity requirement      339.7    (472.6)   (566.1)    246.2     163.3
                       -----------  --------  --------  --------  --------
Levered after-tax cash
 flow after fleet
 growth(c)             $     911.3  $  169.0  $ (458.1) $  284.2  $  388.3
                       ===========  ========  ========  ========  ========


(a)   Adjustment necessary due to the nature of the calculation of non-cash
      expenses and charges where, on a quarterly basis the cash payments
      for a specific liability may exceed the related non-cash expense,
      but not on a cumulative last twelve month basis.  The offsetting
      adjustment goes into the "changes in other assets and liabilities"
      line.
(b)   In 2008, the Company has reclassified its December 31, 2007 interest
      rate swap liability from "changes in working capital" to "changes
      in other assets and liabilities."  All prior period interest rate
      swap balances were assets and already included within "changes in
      other assets and liabilities."
(c)   Amounts include the effect of fluctuations in foreign currency.


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 financial and other measures utilized in Hertz Holdings' August 7, 2008 Press Release are set forth below. Also set forth below is a summary of the reasons why management of Hertz Holdings and Hertz believe that 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 financial 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 June 30, 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 option 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 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. 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.

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

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

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