New York, NY 12-17-2002—Cendant Corporation (NYSE:CD) today announced updated projections for the fourth quarter of 2002 and for 2003.

As a result of the earlier-than-expected recognition of the previously disclosed recovery from the Company`s directors and officers liability insurance policy relating to the settlement of shareholder derivative actions, $0.03 per share of earnings will be recognized in the fourth quarter of 2002 instead of in 2003.
For the fourth quarter of 2002, the Company continues to forecast Adjusted EPS of $0.29. The $0.03 per share benefit to the fourth quarter as a result of the insurance recovery is in addition to this amount and this benefit and acquisition and investigation related items are not included in Adjusted EPS. For full year 2002, the Company continues to forecast Adjusted EPS of $1.26.

Due to current trends in the travel industry, the Company now projects 2003 reported earnings per share of $1.46, equal to the low end of its previous guidance as adjusted for the acceleration of the directors and officers liability insurance recovery. Should the Company achieve $1.46 per share in 2003, it would represent a 34% over reported EPS from continuing operations in 2002. The Company continues to expect that it will generate approximately $2 billion in free cash flow in 2003.
The Company also continues to estimate that 21%-23% of its EPS will occur in the first quarter, 26%-28% will occur in the second quarter, 29%-31% will occur in the third quarter and 20%-22% will occur in the fourth quarter. These estimates are unchanged from the Company`s previous guidance.

Beginning with 2003 results, the Company will discontinue the practice of pro-forma earnings per share reporting and, instead, exclusively report GAAP earnings per share results. The Company will continue to discuss unusual and extraordinary items in its regular disclosures.

Cendant Corporation is primarily a provider of travel and residential real estate services. With approximately 80,000 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).

Adjusted EPS excludes items that are of a non-recurring or unusual nature, including securities litigation costs and acquisition and integration related costs consisting primarily of the non-cash amortization of the pendings and listings intangible asset from real estate brokerage acquisitions. Adjusted EPS is a non-GAAP measure and should be viewed in addition to, and not in lieu of, the Company`s reported results.

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