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Hertz Europe Announces Retail Price Increases

Oct 28, 2008

Company Cites Significant Rising Inflation in Key Cost Areas; Pricing Action Affects Retail Rates Only; Negotiated Contract Rates Unaffected; Company Committed to Keeping Rates Attractive and Competitive

Zoë White
Hertz Europe
Tel:  44 1895 553 500

UXBRIDGE, UK -- (MARKET WIRE) -- 10/28/2008 -- Hertz Europe announced it has implemented price increases for all dates forward, starting October 24, 2008, for its retail car rental business in European** airport and downtown locations by up to 10 per cent. The increases result up to approximately 3.70EUR and £2.50 per rental day for continental Europe and the UK, respectively. The company's negotiated contract rates are not affected by this announcement.

Michel Taride, Executive Vice President, Hertz Corporation, and President, Hertz Europe, commenting on the pricing actions, said, "We have taken this action given the significant inflationary pressures we have experienced for the last few years. However, we have made our price increases as modest as possible to minimize the effect on our retail customers. We will continue to offer attractive and competitive rates to the consumer, as well as deliver special offers such as our 90th Anniversary discount promotions this and next year."

"Since 2000, we kept our pricing levels in Europe constant, and even lowered them in many segments or geographies. However, the impact of rising inflation upon our operating costs has been severe, primarily in the areas of fleet, maintenance, facility expenses and commodity costs such as fuel. We have absorbed these additional costs as much as possible, while at the same time maintaining high quality service levels, through major restructuring and intensive process re-engineering. We are further accelerating our efficiency initiatives so that we operate as the lowest cost, highest quality rental provider in the world for the benefit of our customers," he added.

Hertz leads the car rental industry in customer-focused innovations, and other service-oriented initiatives. Most recently, Hertz introduced industry's first Worldwide Online Check-in service to reduce waiting times at the counter.

This year the company launched the Hertz 369 hourly rentals product in its corporate Europe markets, to allow customers to book vehicles for just 3, 6 or 9 hours. Hertz Europe also launched scooters in London and Paris, as well as electric scooters and motorbikes in Spain.

Hertz Europe opened 80 branches on average per year over the last few years and has expanded and improved its facilities for its #1 Club Gold service.

** Belgium, France, Germany, Italy, Luxembourg, Netherlands, Spain, Switzerland, U.K.

About Hertz

Hertz is the world's largest general use car rental company, operating from over 8,100 corporate locations in 147 countries. In 2008 Hertz celebrates its 90th year of delivering quality car rental solutions to leisure and corporate customers.

Product and service innovations such as Hertz #1 Club Gold, specially designed NeverLost satellite navigation systems, Hertz in-car DVD Entertainment and unique cars offered through the company's Prestige, Fun and Green Collections, set Hertz apart from the competition.