Cendant Raises $1.278 Billion Through Offerings of Cendant Common Stock

NEW YORK, Feb. 8 /PRNewswire/ — Cendant Corporation (NYSE: CD) today
announced the sale of 40 million shares of Cendant common stock to Lehman
Brothers, Inc. at $13.20 per share, net of selling concessions, resulting in
net proceeds of $528 million. Lehman will also have a 30-day option to
purchase up to an additional six million shares of Cendant common stock to
cover over-allotments which would provide $79.2 million in net proceeds.

Cendant also announced that it has agreed to sell $750 million of
zero-coupon convertible senior notes due 2021 in a private offering resulting
in net proceeds of approximately $738 million. The initial purchaser will
also have a 30-day option to purchase additional notes to cover
over-allotments resulting in up to $148 million in additional net proceeds to

Interest will accrue on the notes at a rate not to exceed 2.5% per annum,
subject to certain contingencies. The notes will be convertible into shares of
Cendant common stock at a price per share of not less than $18.22 if the
closing price of Cendant's common shares on the New York Stock Exchange
exceeds specified levels or in certain other circumstances. The notes will
not be redeemable by Cendant prior to February 13, 2004 but Cendant may be
required to repurchase notes at the accreted value thereof, at the option of
the holders, on February 13, 2004, 2009, or 2014. Cendant may choose to pay
the purchase price for the foregoing repurchases in cash or shares of Cendant
common stock.

The notes have not been registered under United States securities laws and
may not be offered or sold in the United States except to qualified
institutional buyers.

The offerings are scheduled to close on February 13, 2001. Cendant will
use the proceeds from the offerings to consummate the acquisitions of Avis
Group Holdings, Inc. and Fairfield Communities, Inc., reduce outstanding debt,
and for general corporate purposes.

Cendant Corporation is a diversified global provider of business and
consumer services primarily within the real estate and travel sectors. The
Company's core competencies include building franchise systems and providing
outsourcing services. Cendant is among the world's leading franchisers of
real estate brokerage offices, hotels, rental car agencies, and tax
preparation services. Cendant is also a provider of outsourcing solutions to
its business partners including mortgage origination, employee relocation,
customer loyalty programs, and vacation exchange services. Other business
units include NCP, the UK's largest private car park operator, and WizCom, an
information technology services provider. With headquarters in New York City,
the Company has approximately 28,000 employees and operates in over
100 countries.

SOURCE Cendant Corporation