Outlook

While demand for vehicle rentals appears to have stabilized,
the Company expects the macroeconomic climate will remain challenging and
rental volumes in the fourth quarter will again be lower than in the
comparable 2008 period. Based on rental and reservation activity to date,
the Company expects that favorable year-over-year pricing comparisons
will continue in the fourth quarter. The Company also expects to keep the
size of its rental fleet in line with rental demand, as it has throughout
2009.

The used car market continued to strengthen over the course of the third
quarter. Our domestic fleet costs are now expected to increase 4-6% on a
per-unit basis in 2009, including a modest year-over-year decrease in
fourth quarter 2009. The Company is continuing its efforts to reduce costs
and enhance productivity through its Performance Excellence initiative and
expects the benefits of this program to exceed $100 million over the
course of 2009. Such benefits are expected to be incremental to the more
than $270 million of annual savings generated by the Company's five-point
cost-reduction and efficiency improvement plan and from cost-reduction
actions the Company implemented in third quarter 2008.