Cendant Announces Settlement of Derivative Action

New York, NY 07-2002—Cendant Corporation (NYSE:CD) announced today the settlement of the pending shareholder derivative actions against several officers and directors and former officers and directors of Cendant. The actions arose out of the 1997 merger of HFS Incorporated and CUC International Inc. forming Cendant and the accounting fraud discovered at CUC.

The settlement provides for the payment to Cendant of $54 million, less such attorneys` fees as may be awarded by the Court, all of which will be provided through proceeds of insurance policies covering the defendants.

The settlement is subject to approval of the U.S. District Court in New Jersey. A hearing on the settlement is scheduled for late October 2002.

Cendant Corporation is primarily a provider of travel and residential real estate services. With approximately 70,000 employees, New York City-based Cendant provides these services to businesses and consumers in over 100 countries.

More information about Cendant, its companies, brands and current SEC filings may be obtained by visiting the Company’s Web site at www.cendant.com or by calling 877-4-INFOCD (877-446-3623).