Cendant Corporation has commenced meetings with institutional investors in connection with the planned spin-off of Realogy Corporation. The company also announced progress in pursuing its alternative plan to sell Travelport, rather than spin it off, making a sale of Travelport the more likely alternative. (5/31/2006)

Although no assurance can be provided, should such a sale occur, the Company currently expects that the majority of the net proceeds (after transaction costs, taxes and repayment of debt incurred by Travelport to fund repayment of Cendant's outstanding corporate debt) will be paid to Realogy and Wyndham Worldwide. Each of Realogy and Wyndham Worldwide will be required to use these proceeds to repay indebtedness incurred by them to fund the repayment of Cendant's corporate debt,?stated Cendant.

It added: there can be no assurance that any potential purchaser of Travelport will enter into a definitive agreement for any transaction or that any transaction to sell Travelport will be completed. Any transaction is subject to completion of due diligence by a purchaser, negotiation and execution of definitive agreements and satisfaction of any closing conditions to a transaction.?

The company anticipates that its Board of Directors will declare the dividend of Realogy Corporation common stock during the week of June 5, 2006. Accordingly, it is expected that Realogy common stock will begin trading on the New York Stock Exchange on a issued basis in mid-June and as a separate public company by the end of June.

Based upon current trends and leading indicators related to existing home sales, Realogy now estimates full-year 2006 revenue of approximately $7.1 billion and pro forma EBITDA, assuming the spin-off had occurred on January 1, 2006, of approximately $1 billion, before restructuring and separation-related expenses.

The balance of the separation plan continues on schedule, and the company's full-year 2006 estimated financial results, excluding the effects of the separation, for each of Wyndham Worldwide, Travelport and Avis Budget remain unchanged from Cendant's most recent estimate,?stated Cendant. For second quarter 2006, the Company expects revenue from core operations for Cendant to increase modestly and EBITDA from core operations (before separation costs) to decrease 5%-10% versus second quarter 2005. The Company expects EBITDA (before separation costs) to increase at Hospitality Services and Timeshare Resorts, to be flat at Travelport, and to be down at Avis Budget. Realogy's second quarter EBITDA (before separation costs) is expected to be down approximately 20% year-over-year, reflecting the moderation in home sale activity.?

After the spin-offs of Realogy and Wyndham Worldwide and upon the sale or spin-off of Travelport, Cendant will be a separate publicly held company and will operate its Avis and Budget vehicle rental operations as Avis Budget Group, Inc.