Hertz Reports Improved Third Quarter Profits

PARK RIDGE, NJ, Oct 29 (MARKET WIRE) --
Hertz Global Holdings, Inc. (NYSE: HTZ)

-- Adjusted pre-tax income(1) for the quarter increased 15.5% over the
prior year, to $195.3 million, on 15.7% lower revenues; GAAP pre-tax income
increased 189% to $75.8 million.
-- Adjusted pre-tax margin of 9.6%, 260 bps better than last year, GAAP
pre-tax income margin of 3.7% for the quarter, also a 260 bps improvement.
-- Worldwide car rental adjusted pre-tax income of $258.3 million for the
quarter, a 54.6% increase year-over-year on 11.5% lower revenues, and a
margin of 14.7%, 630 bps better than last year.
-- Corporate EBITDA(1) of $388.1 million for the quarter, or a margin of
19.0%, 300 bps better than last year.
-- Worldwide equipment rental Corporate EBITDA margin of 41.9%.

Hertz Global Holdings, Inc. (NYSE: HTZ) (with its subsidiaries, the
"Company" or "we") reported third quarter 2009 worldwide revenues of $2.0
billion, a decrease of 15.7% year-over-year (a 13.4% decrease in constant
currency). Worldwide car rental revenues for the quarter decreased 11.5%
(an 8.9% decrease in constant currency) to $1.8 billion. Revenues from
worldwide equipment rental for the third quarter were $280.5 million, down
35.2% (a 33.9% decrease in constant currency) over the prior year period.

Third quarter 2009 adjusted pre-tax income was $195.3 million, an
improvement of 15.5%, versus $169.1 million in the same period in 2008,
and income before income taxes ("pre-tax income"), on a GAAP basis, was
$75.8 million, an increase of 189%, versus $26.2 million in the third
quarter of 2008. Corporate EBITDA for the third quarter of 2009 was
$388.1 million, an increase of 0.4% from the same period in 2008.

Third quarter 2009 adjusted net income(1) was $124.5 million, an increase
of 17.5%, versus $106.0 million in the same period of 2008, resulting in
adjusted diluted earnings per share for the quarter of $0.31, compared
with $0.33 for the third quarter of 2008. Third quarter 2009 net income,
on a GAAP basis, was $64.5 million or $0.15 per share on a diluted basis,
compared with $17.7 million, or $0.05 per share on a diluted basis, for
the third quarter of 2008.

Mark P. Frissora, the Company's Chairman and Chief Executive Officer,
said, "Our strong earnings performance in the third quarter reflects
sustained progress on expense management and incremental
revenue-generating initiatives which are offsetting soft, but improving,
business travel demand and stabilizing equipment rental volume. As the
global economy recovers, we expect our balanced approach to revenue
growth, costs and cash management will result in continued improvement in
key financial metrics. Additionally, with the recent completion of two
Capital Market transactions totaling $3.3 billion, Hertz has achieved its
U.S. fleet refinancing targets on favorable terms a year ahead of
schedule."

The Company took $47.1 million in restructuring and related charges in the
third quarter of 2009, primarily attributable to costs associated with job
reductions, the closure of rental locations and process reengineering.
The Company said it expects restructuring and related charges to diminish
significantly starting in the fourth quarter of 2009 and throughout 2010.

INCOME MEASUREMENTS, THIRD QUARTER 2009 & 2008

Q3 2009 Q3 2008
-------------------------- -------------------------
Diluted Diluted
Earnings Earnings
(in millions, except Pre-tax Net Per Pre-tax Net Per
per share amounts) Income Income Share Income Income Share
-------- ------- -------- ------- ------- --------
Earnings Measures, as
reported (EPS
based on 425.2M and
322.9M diluted
shares) $ 75.8 $ 64.5 $ 0.15 $ 26.2 $ 17.7 $ 0.05
======= ======== ======= ========
Adjustments:
Purchase accounting 21.7 25.2
Non-cash debt
charges 48.5 20.2
Restructuring and
related charges 47.1 85.0
Derivative losses 1.9 15.0
Vacation accrual
adjustment - (2.5)
Other 0.3 -
-------- -------
Adjusted pre-tax
income 195.3 195.3 169.1 169.1
Assumed provision
for income taxes at
34% (66.4) (57.5)
Noncontrolling
interest (4.4) (5.6)
-------- ------- ------- -------
Earnings Measures, as
adjusted (EPS based
on 407.7M and 325.5M
diluted shares) $ 195.3 $ 124.5 $ 0.31 $ 169.1 $ 106.0 $ 0.33
======== ======= ======== ======= ======= ========

The Company ended the third quarter of 2009 with total debt of $10.3
billion and net corporate debt(1) of $3.6 billion, compared with total
debt of $9.8 billion and net corporate debt of $4.0 billion as of June
30, 2009, a decrease in net corporate debt of $369.1 million. The
decrease in net corporate debt is primarily attributable to an increase
in cash. Total net cash flow(1) for the quarter was $70.8 million
compared with a use of $157.7 million in the third quarter of 2008. The
improvement of $228.5 million is primarily attributable to proceeds from
a private sale of our common stock to certain of our controlling
stockholders in July 2009. Total liquidity(2) was approximately $5.1
billion as of September 30, 2009. On a GAAP basis, net cash provided by
operating activities was $608.8 million in the third quarter of 2009,
compared to $921.2 million last year.

WORLDWIDE CAR RENTAL

Worldwide car rental revenues were $1.8 billion for the third quarter of
2009, a decrease of 11.5% (an 8.9% decrease in constant currency) from the
prior year period. Transaction days for the quarter decreased 5.8% [(4.0)%
U.S.; (9.0)% International]. U.S. off-airport revenues for the third
quarter decreased 1.0% year-over-year, and transaction days increased
5.2%. Rental rate revenue per transaction day(1) ("RPD") for the quarter
was 1.9% below the prior year period [(3.4)% U.S.; 0.8% International].
Additionally, pure pricing increased 0.4% overall, and 2.7% for the U.S.
leisure airport market, year-over-year.

Worldwide car rental adjusted pre-tax income for the third quarter of 2009
was $258.3 million, an improvement of 54.6% over the prior year period.
The result was driven by strong cost management performance, including
higher revenues per vehicle, lower overall fleet costs and staffing/wage
levels commensurate with rental volumes. As a result, worldwide car rental
achieved an adjusted pre-tax margin, based on revenues, of 14.7% for the
quarter, 630bps better than the prior year period.

The worldwide average number of Company-operated cars for the third
quarter of 2009 was 445,200, a decrease of 9.3% over the prior year
period.

Additionally, the U.S. car rental business made year-over-year progress in
the third quarter, due to further productivity and revenue generation
improvements, year-over-year. A few key metrics include:

-- Transaction length increased 4.8% over last year, driven primarily by
leisure and off-airport transactions, including the new multi-month
rental product.
-- Revenue per transaction, a good measure of pricing and transaction
length mix, increased 1.2% year-over-year.
-- 8.6% lower average U.S. car-rental fleet compared with the third
quarter of 2008, taking advantage of an improving used car market.
-- Fleet efficiency of 83.3%, a 398 bps improvement year-over-year, and
monthly depreciation per vehicle of $319.11, an 11.9% decrease.
-- Revenue per vehicle, a good measure of fleet productivity, increased
1.4% year-over-year.

WORLDWIDE EQUIPMENT RENTAL

Worldwide equipment rental revenues were $280.5 million for the third
quarter of 2009, a 35.2% decrease (a 33.9% decrease in constant currency)
from the prior year period.

Adjusted pre-tax income for the third quarter of 2009 was $25.2 million, a
68.9% decrease from the prior year period, primarily attributable to the
effects of reduced volume and pricing, partially offset by cost management
initiatives. HERC achieved an adjusted pre-tax margin, based on revenues,
of 9.0%, and a Corporate EBITDA margin, based on revenues, of 41.9% for
the quarter.

The average acquisition cost of rental equipment operated during the third
quarter of 2009 decreased by 16.9% year-over-year -- compared with a 0.4%
increase in the third quarter of 2008 over the third quarter of 2007 -- to
$2.8 billion, and net revenue earning equipment as of September 30, 2009
was $1.9 billion, a 13.6% decrease from the amount as of December 31,
2008.

OUTLOOK

On October 27, 2009, the Company announced it had increased full year 2009
earnings guidance for annualized cost savings, revenues, Corporate EBITDA,
adjusted pre-tax income and adjusted diluted earnings per share as
follows:

Revised
Guidance Prior Guidance
--------------- ---------------
Annualized Cost Savings $ 620.0M $ 570.0M
Revenue $ 7.0 - $ 7.1B $ 6.7 - $ 7.0B
Corporate EBITDA(3) $ 950 - $ 960M $ 900 - $ 935M
Adjusted Pre-Tax Income(3) $ 155 - $ 165M $ 100 - $ 120M
Adjusted Diluted Earnings per Share(3)(4) $ 0.21 - $ 0.23 $ 0.12 - $ 0.15

RESULTS OF THE HERTZ CORPORATION

The Company's operating subsidiary, The Hertz Corporation ("Hertz"),
posted the same revenues for the third quarter of 2009 as the Company.
Hertz's third quarter of 2009 pre-tax income was, however, $11.3 million
higher than that of the Company primarily because of additional interest
expense recognized by the Company on its 5.25% Convertible Senior Notes
issued in May and June 2009.

(1) Adjusted net income, adjusted diluted earnings per share, adjusted
pre-tax income, Corporate EBITDA, net corporate debt, total net cash flow
and rental rate revenue per transaction day are non-GAAP measures. See
the accompanying Attachments for the reconciliations and definitions for
each of these non-GAAP measures and the reason the Company's management
believes that these measures provide useful information to investors
regarding the Company's financial condition and results of operations.

(2) Total liquidity of $5.1 billion is comprised of $0.9 billion of cash,
$1.0 billion of undrawn corporate liquidity and $3.2 billion of fleet
financing availability. Total liquidity is subject to borrowing base
limitations and other factors--we had $1.7 billion of the borrowing base
available at September 30, 2009 and $0.9 billion of cash.

(3) Management believes that Corporate EBITDA, adjusted pre-tax income and
adjusted diluted earnings per share are useful in measuring the comparable
results of the Company period-over-period. The GAAP measures most directly
comparable to Corporate EBITDA, adjusted pre-tax income and adjusted
diluted earnings per share are cash flows from operating activities,
pre-tax income and diluted earnings per share. Because of the
forward-looking nature of the Company's forecasted Corporate EBITDA,
adjusted pre-tax income and adjusted diluted earnings per share, specific
quantifications of the amounts that would be required to reconcile
forecasted cash flows from operating activities, pre-tax income and
diluted earnings per share to forecasted Corporate EBITDA, adjusted
pre-tax income and adjusted diluted earnings per share are not available.
The Company believes that there is a degree of volatility with respect to
certain of the Company's GAAP measures, primarily related to fair value
accounting for its financial assets (which includes the Company's
derivative financial instruments), its income tax reporting and certain
adjustments made in order to arrive at the relevant non-GAAP measures,
which preclude the Company from providing accurate forecasted GAAP to
non-GAAP reconciliations. Based on the above, the Company believes that
providing estimates of the amounts that would be required to reconcile
the range of the non-GAAP Corporate EBITDA, adjusted pre-tax income and
adjusted diluted earnings per share to forecasted cash flows from
operating activities, pre-tax income and diluted earnings per share would
imply a degree of precision that could be confusing or misleading to
investors for the reasons identified above.

(4) Based on 407.7 million shares which represents the number of diluted
shares outstanding for the year ended December 31, 2008 plus 85 million
shares offered in the common stock offerings.

CONFERENCE CALL INFORMATION

The Company's third quarter 2009 earnings conference call will be held on
Friday, October 30, 2009, at 10:00 a.m. (EDT). To access the conference
call live, dial 888-428-4479 in the U.S. and 612-332-0107 for
international callers using the passcode: 118502 or listen via webcast at
www.hertz.com/investorrelations. The conference call will be available for
replay for two weeks starting at 12:30 p.m. on October 30, 2009 by calling
800-475-6701 in the U.S. or 320-365-3844 for international callers with
the passcode: 118502. The press release and related tables containing the
reconciliations of non-GAAP measures will be available on our website,
www.hertz.com/investorrelations.

ABOUT THE COMPANY

Hertz is the world's largest general use car rental brand, operating from
approximately 8,100 locations in approximately 145 countries worldwide.
Hertz is the number one airport car rental brand in the U.S. and at 42
major airports in Europe, operating both corporate and licensee locations
in cities and airports in North America, Europe, Latin America, Australia
and New Zealand. In addition, the Company has licensee locations in cities
and airports in Africa, Asia, and the Middle East. Product and service
initiatives such as Hertz #1 Club Gold(R), NeverLost(R) customized,
onboard navigation systems, SIRIUS Satellite Radio, and unique cars and
SUVs offered through the company's Prestige, Fun and Green Collections,
set Hertz apart from the competition. In 2008, the Company launched
Connect by Hertz, entering the global car sharing market in London, New
York City and Paris. Hertz also operates one of the world's largest
equipment rental businesses, Hertz Equipment Rental Corporation, offering
a diverse line of equipment, including tools and supplies, as well as new
and used equipment for sale, to customers ranging from major industrial
companies to local contractors and consumers from approximately 330
branches in the United States, Canada, China, France and Spain.

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release include
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. You should not place undue reliance on
these statements. Forward-looking statements include information
concerning the Company's outlook, anticipated revenues, results of
operations and implementation of productivity and efficiency initiatives,
including targeted job reductions, and the anticipated savings and
restructuring charges expected to be realized or incurred in connection
therewith. These statements often include words such as "believe,"
"expect," "project," "anticipate," "intend," "plan," "estimate," "seek,"
"will," "may," "should," "forecast" or similar expressions. These
statements are based on certain assumptions that the Company has made in
light of its experience in the industry as well as its perceptions of
historical trends, current conditions, expected future developments and
other factors that the Company believes are appropriate in these
circumstances. As you read this press release, you should understand that
these statements are not guarantees of performance or results. They
involve risks, uncertainties and assumptions. Many factors could affect
the Company's actual results and its ability to implement its cost
savings and efficiency initiatives successfully, and could cause the
Company's actual results to differ materially from those expressed in the
forward-looking statements. Some important factors include: the Company's
operations; economic performance; financial condition; management
forecasts; efficiencies, cost savings and opportunities to increase
productivity and profitability; income and margins; liquidity and
availability of additional or continued fleet financing including as a
result of the financial instability of the entities providing credit
support for certain of our notes; the financial instability of the
manufacturers of our vehicles; anticipated growth; economies of scale; the
economy; future economic performance; the Company's ability to maintain
profitability during adverse economic cycles, potential tangible and
intangible asset impairment charges and unfavorable external events
(including war, terrorist acts, natural disasters and epidemic disease);
future acquisitions and dispositions; litigation; potential and contingent
liabilities; management's plans; taxes; and refinancing of existing debt.
In light of these risks, uncertainties and assumptions, the
forward-looking statements contained in this press release might not
prove to be accurate and you should not place undue reliance upon them.
All forward-looking statements attributable to the Company or persons
acting on the Company's behalf are expressly qualified in their entirety
by the foregoing cautionary statements. All such statements speak only as
of the date made, and the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of
new information, future events or otherwise.

The Company cautions you therefore that you should not rely unduly on
these forward-looking statements. You should understand the risks and
uncertainties discussed in "Risk Factors" and elsewhere in the Company's
2008 Annual Report on Form 10-K for the fiscal year ended December 31,
2008, as filed with the United States Securities and Exchange Commission,
or the "SEC," on March 3, 2009, and its Quarterly Report on Form 10-Q for
the three months ended June 30, 2009, as filed with the SEC on August 7,
2009, could affect the Company's future results and the outcome of its
implementation of its cost savings and efficiency initiatives, and could
cause those results or other outcomes to differ materially from those
expressed or implied in the Company's forward-looking statements.

Attachments:

Table 1: Condensed Consolidated Statements of Operations for the Three
and Nine Months Ended September 30, 2009 and 2008
Table 2: Condensed Consolidated Statements of Operations As Reported and
As Adjusted for the Three and Nine Months Ended September 30,
2009 and 2008
Table 3: Segment and Other Information for the Three and Nine Months
Ended September 30, 2009 and 2008
Table 4: Selected Operating and Financial Data as of or for the Three and
Nine Months Ended September 30, 2009 compared to September 30,
2008 and Selected Balance Sheet Data as of September 30, 2009
and December 31, 2008
Table 5: Non-GAAP Reconciliations of Adjusted Pre-Tax Income (Loss) and
Adjusted Net Income (Loss) for the Three and Nine Months Ended
September 30, 2009 and 2008
Table 6: Non-GAAP Reconciliations of EBITDA, Corporate EBITDA, Unlevered
Pre-Tax Cash Flow, Levered After-Tax Cash Flow Before Fleet
Growth and Levered After-Tax Cash Flow After Fleet Growth for
the Three and Nine Months Ended September 30, 2009 and 2008
Table 7: Non-GAAP Reconciliations of Operating Cash Flows to EBITDA for
the Three and Nine Months Ended September 30, 2009 and 2008, Net
Corporate Debt, Net Fleet Debt and Total Net Debt as of
September 30, 2009, 2008 and 2007, June 30, 2009 and 2008 and
December 31, 2008 and 2007, Car Rental Rate Revenue per
Transaction Day and Equipment Rental and Rental Related Revenue
for the Three and Nine Months Ended September 30, 2009 and 2008
Table 8: Non-GAAP Reconciliations of EBITDA, Corporate EBITDA, Unlevered
Pre-Tax Cash Flow, Levered After-Tax Cash Flow Before Fleet
Growth and Levered After-Tax Cash Flow After Fleet Growth for
the Twelve Months Ended September 30, 2009 and 2008
Table 9: Non-GAAP Reconciliation of Total Net Cash Flow for the Three,
Nine and Twelve Months Ended September 30, 2009 and 2008

Exhibit 1: Non-GAAP Measures: Definitions and Use/Importance

Table 1
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
Unaudited

Three Months Ended As a Percentage
September 30, of Total Revenues
-------------------- -------------------
2009 2008 2009 2008
--------- --------- -------- --------
Total revenues $ 2,041.4 $ 2,421.9 100.0 % 100.0 %
--------- --------- -------- --------

Expenses:
Direct operating 1,118.6 1,351.8 54.8 % 55.8 %
Depreciation of revenue
earning equipment 499.1 595.0 24.4 % 24.5 %
Selling, general and
administrative 179.7 234.3 8.8 % 9.7 %
Interest expense 169.3 220.1 8.3 % 9.1 %
Interest and other income, net (1.1) (5.5) - % (0.2)%
--------- --------- -------- --------
Total expenses 1,965.6 2,395.7 96.3 % 98.9 %
--------- --------- -------- --------
Income before income taxes 75.8 26.2 3.7 % 1.1 %
Provision for taxes on income (6.9) (2.9) (0.3)% (0.2)%
--------- --------- -------- --------
Net income 68.9 23.3 3.4 % 0.9 %
Less: Net income attributable
to noncontrolling interest (4.4) (5.6) (0.2)% (0.2)%
--------- --------- -------- --------
Net income attributable to
Hertz Global Holdings, Inc.
and Subsidiaries' common
stockholders $ 64.5 $ 17.7 3.2 % 0.7 %
========= ========= ======== ========

Weighted average number of
shares outstanding:
Basic 407.4 322.9
Diluted 425.2 322.9

Earnings per share attributable
to Hertz Global Holdings, Inc.
and Subsidiaries' common
stockholders:
Basic $ 0.16 $ 0.05
Diluted $ 0.15 $ 0.05

Nine Months Ended As a Percentage
September 30, of Total Revenues
-------------------- -------------------
2009 2008 2009 2008
--------- --------- -------- --------
Total revenues $ 5,360.8 $ 6,736.3 100.0 % 100.0 %
--------- --------- -------- --------

Expenses:
Direct operating 3,062.5 3,801.8 57.1 % 56.4 %
Depreciation of revenue
earning equipment 1,468.2 1,658.7 27.4 % 24.6 %
Selling, general and
administrative 488.0 595.8 9.1 % 8.9 %
Interest expense 498.3 637.1 9.3 % 9.5 %
Interest and other income, net (52.6) (20.4) (1.0)% (0.3)%
--------- --------- -------- --------
Total expenses 5,464.4 6,673.0 101.9 % 99.1 %
--------- --------- -------- --------
Income (loss) before income
taxes (103.6) 63.3 (1.9)% 0.9 %
Benefit (provision) for
taxes on income 19.9 (36.0) 0.3 % (0.5)%
--------- --------- -------- --------
Net income (loss) (83.7) 27.3 (1.6)% 0.4 %
Less: Net income attributable
to noncontrolling interest (11.4) (16.1) (0.2)% (0.2)%
--------- --------- -------- --------
Net income (loss) attributable
to Hertz Global Holdings, Inc.
and Subsidiaries' common
stockholders $ (95.1) $ 11.2 (1.8)% 0.2 %
========= ========= ======== ========

Weighted average number of
shares outstanding:
Basic 358.5 322.6
Diluted 358.5 322.6

Earnings (loss) per share
attributable to Hertz
Global Holdings, Inc. and
Subsidiaries' common
stockholders:
Basic $ (0.27) $ 0.03
Diluted $ (0.27) $ 0.03

Table 2
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions)
Unaudited

Three Months Ended September 30, 2009
------------------------------------------
As As
Reported Adjustments Adjusted
------------ ----------- ------------
Total revenues $ 2,041.4 $ - $ 2,041.4
------------ ----------- ------------

Expenses:
Direct operating 1,118.6 (46.1)(a) 1,072.5
Depreciation of revenue
earning equipment 499.1 (2.0)(b) 497.1
Selling, general and
administrative 179.7 (22.9)(c) 156.8
Interest expense 169.3 (48.5)(d) 120.8
Interest and other income, net (1.1) - (1.1)
------------ ----------- ------------
Total expenses 1,965.6 (119.5) 1,846.1
------------ ----------- ------------
Income before income taxes 75.8 119.5 195.3
Provision for taxes on income (6.9) (59.5)(e) (66.4)
------------ ----------- ------------
Net income 68.9 60.0 128.9
Less: Net income attributable
to noncontrolling interest (4.4) - (4.4)
------------ ----------- ------------
Net income attributable to
Hertz Global Holdings, Inc.
and Subsidiaries' common
stockholders $ 64.5 $ 60.0 $ 124.5
============ =========== ============

Three Months Ended September 30, 2008
------------------------------------------
As As
Reported Adjustments Adjusted
------------ ----------- ------------
Total revenues $ 2,421.9 $ - $ 2,421.9
------------ ----------- ------------

Expenses:
Direct operating 1,351.8 (76.8)(a) 1,275.0
Depreciation of revenue
earning equipment 595.0 (6.1)(b) 588.9
Selling, general and
administrative 234.3 (39.8)(c) 194.5
Interest expense 220.1 (20.2)(d) 199.9
Interest and other income, net (5.5) - (5.5)
------------ ----------- ------------
Total expenses 2,395.7 (142.9) 2,252.8
------------ ----------- ------------
Income before income taxes 26.2 142.9 169.1
Provision for taxes on income (2.9) (54.6)(e) (57.5)
------------ ----------- ------------
Net income 23.3 88.3 111.6
Less: Net income attributable
to noncontrolling interest (5.6) - (5.6)
------------ ----------- ------------
Net income attributable to
Hertz Global Holdings, Inc.
and Subsidiaries' common
stockholders $ 17.7 $ 88.3 $ 106.0
============ ============ ============

Nine Months Ended September 30, 2009
------------------------------------------
As As
Reported Adjustments Adjusted
------------ ----------- ------------
Total revenues $ 5,360.8 $ - $ 5,360.8
------------ ----------- ------------

Expenses:
Direct operating 3,062.5 (126.3)(a) 2,936.2
Depreciation of revenue
earning equipment 1,468.2 (11.7)(b) 1,456.5
Selling, general and
administrative 488.0 (52.6)(c) 435.4
Interest expense 498.3 (121.2)(d) 377.1
Interest and other income, net (52.6) 48.5 (f) (4.1)
------------ ----------- ------------
Total expenses 5,464.4 (263.3) 5,201.1
------------ ----------- ------------
Income (loss) before income
taxes (103.6) 263.3 159.7
Benefit (provision) for taxes
on income 19.9 (74.2)(e) (54.3)
------------ ----------- ------------
Net income (loss) (83.7) 189.1 105.4
Less: Net income attributable
to noncontrolling interest (11.4) - (11.4)
------------ ----------- ------------
Net income (loss) attributable
to Hertz Global Holdings, Inc.
and Subsidiaries' common
stockholders $ (95.1) $ 189.1 $ 94.0
============ ============ ============

Nine Months Ended September 30, 2008
------------------------------------------
As As
Reported Adjustments Adjusted
------------ ----------- ------------
Total revenues $ 6,736.3 $ - $ 6,736.3
------------ ----------- ------------

Expenses:
Direct operating 3,801.8 (156.8)(a) 3,645.0
Depreciation of revenue
earning equipment 1,658.7 (15.7)(b) 1,643.0
Selling, general and
administrative 595.8 (48.6)(c) 547.2
Interest expense 637.1 (56.4)(d) 580.7
Interest and other income, net (20.4) - (20.4)
------------ ----------- ------------
Total expenses 6,673.0 (277.5) 6,395.5
------------ ----------- ------------
Income before income taxes 63.3 277.5 340.8
Provision for taxes on income (36.0) (79.9)(e) (115.9)
------------ ----------- ------------
Net income 27.3 197.6 224.9
Less: Net income attributable
to noncontrolling interest (16.1) - (16.1)
------------ ----------- ------------
Net income attributable to
Hertz Global Holdings, Inc.
and Subsidiaries' common
stockholders $ 11.2 $ 197.6 $ 208.8
============ ============ ============

(a) Represents the increase in amortization of other intangible assets,
depreciation of property and equipment and accretion of certain
revalued liabilities relating to purchase accounting. For the three
months ended September 30, 2009 and 2008, also includes restructuring
and restructuring related charges of $26.4 million and $60.3 million,
respectively. For the nine months ended September 30, 2009 and 2008,
also includes restructuring and restructuring related charges of
$73.4 million and $98.7 million, respectively. For the three and nine
months ended September 30, 2009, also includes gasoline hedge gains of
$0.1 million and $5.0 million, respectively. For the three months
ended September 30, 2008, also includes vacation accrual adjustments
of $2.4 million.
(b) Represents the increase in depreciation of revenue earning equipment
based upon its revaluation relating to purchase accounting.
(c) Represents an increase in depreciation of property and equipment
relating to purchase accounting. For the three months ended September
30, 2009 and 2008, also includes restructuring and restructuring
related charges of $20.7 million and $24.7 million, respectively. For
the nine months ended September 30, 2009 and 2008, also includes
restructuring and related charges of $45.4 million and $49.5 million,
respectively. For the three and nine months ended September 30, 2009,
also includes interest rate cap losses of $2.0 million and $2.0
million, respectively. For the three months ended September 30, 2008,
also includes vacation accrual adjustment of $0.1 million. For the
three and nine months ended September 30, 2008, also includes interest
rate swaption loss of $15.0 million and gain of $2.8 million,
respectively. For all periods presented, also includes other
adjustments which are detailed in Table 5.
(d) Represents non-cash debt charges relating to the amortization of
deferred debt financing costs and debt discounts. For the three and
nine months ended September 30, 2009, also includes $22.4 million and
$52.2 million, respectively, associated with the amortization of
amounts pertaining to the de-designation of our interest rate swaps as
effective hedging instruments. For the three and nine months ended
September 30, 2008, also includes $2.8 million and $7.8 million,
respectively, associated with the ineffectiveness of our interest rate
swaps.
(e) Represents a provision for income taxes derived utilizing a normalized
income tax rate (34% for 2009 and 2008).
(f) Represents a gain (net of transaction costs) recorded in connection
with the buyback of portions of our Senior Notes and Senior
Subordinated Notes during the nine months ended September 30, 2009.

Table 3
HERTZ GLOBAL HOLDINGS, INC.
SEGMENT AND OTHER INFORMATION
(In millions, except per share amounts)
Unaudited

Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Revenues:
Car rental $ 1,757.7 $ 1,986.5 $ 4,515.3 $ 5,442.8
Equipment rental 280.5 433.1 837.0 1,287.4
Other reconciling items 3.2 2.3 8.5 6.1
--------- --------- --------- ---------
$ 2,041.4 $ 2,421.9 $ 5,360.8 $ 6,736.3
========= ========= ========= =========

Depreciation of property and
equipment:
Car rental $ 28.2 $ 30.0 $ 86.6 $ 94.6
Equipment rental 9.3 11.2 28.3 32.3
Other reconciling items 1.7 1.5 4.8 4.6
--------- --------- --------- ---------
$ 39.2 $ 42.7 $ 119.7 $ 131.5
========= ========= ========= =========

Amortization of other
intangible assets:
Car rental $ 8.6 $ 8.4 $ 25.2 $ 25.4
Equipment rental 8.2 8.1 24.5 24.3
Other reconciling items 0.2 - 0.4 -
--------- --------- --------- ---------
$ 17.0 $ 16.5 $ 50.1 $ 49.7
========= ========= ========= =========

Income (loss) before income
taxes:
Car rental $ 174.2 $ 85.8 $ 164.4 $ 209.4
Equipment rental 3.0 26.9 (23.5) 118.5
Other reconciling items (101.4) (86.5) (244.5) (264.6)
--------- --------- --------- ---------
$ 75.8 $ 26.2 $ (103.6) $ 63.3
========= ========= ========= =========

Corporate EBITDA (a):
Car rental $ 281.8 $ 193.2 $ 444.5 $ 439.4
Equipment rental 117.5 199.7 348.6 578.5
Other reconciling items (11.2) (6.2) (32.4) (31.7)
--------- --------- --------- ---------
$ 388.1 $ 386.7 $ 760.7 $ 986.2
========= ========= ========= =========

Adjusted pre-tax income
(loss) (a):
Car rental $ 258.3 $ 167.1 $ 368.4 $ 355.8
Equipment rental 25.2 81.1 50.6 225.9
Other reconciling items (88.2) (79.1) (259.3) (240.9)
--------- --------- --------- ---------
$ 195.3 $ 169.1 $ 159.7 $ 340.8
========= ========= ========= =========

Adjusted net income (loss) (a):
Car rental $ 170.5 $ 110.3 $ 243.1 $ 234.8
Equipment rental 16.6 53.5 33.4 149.1
Other reconciling items (62.6) (57.8) (182.5) (175.1)
--------- --------- --------- ---------
$ 124.5 $ 106.0 $ 94.0 $ 208.8
========= ========= ========= =========

Adjusted diluted number of
shares outstanding (a) 407.7 325.5 407.7 325.5

Adjusted diluted earnings
per share (a) $ 0.31 $ 0.33 $ 0.23 $ 0.64

(a) Represents a non-GAAP measure, see the accompanying reconciliations
and definitions.
Note: "Other Reconciling Items" includes general corporate expenses,
certain interest expense (including net interest on corporate debt),
as well as other business activities such as our third-party claim
management services. See Tables 5 and 6.

Table 4
HERTZ GLOBAL HOLDINGS, INC.
SELECTED OPERATING AND FINANCIAL DATA
Unaudited

Three Percent Nine Percent
Months change Months change
Ended, or as from Ended, or as from
of Sept. 30, prior year of Sept. 30, prior year
2009 period 2009 period
--------- --------- --------- ---------

Selected Car Rental Operating Data

Worldwide number of
transactions (in
thousands) 6,482 (9.1)% 18,392 (13.1)%
Domestic 4,629 (8.4)% 13,300 (13.5)%
International 1,853 (10.9)% 5,092 (12.0)%

Worldwide transaction
days (in thousands) 33,456 (5.8)% 89,293 (9.8)%
Domestic 21,705 (4.0)% 60,163 (9.3)%
International 11,751 (9.0)% 29,130 (10.9)%

Worldwide rental rate
revenue per transaction
day (a) $ 43.98 (1.9)% $ 42.89 (2.2)%
Domestic $ 43.47 (3.4)% $ 42.33 (2.5)%
International (b) $ 44.90 0.8 % $ 44.04 (1.6)%

Worldwide average number of
company-operated cars
during period 445,200 (9.3)% 410,500 (12.2)%
Domestic 285,500 (8.6)% 272,100 (12.5)%
International 159,700 (10.4)% 138,400 (11.7)%

Worldwide revenue earning
equipment, net
(in millions) $ 7,157.1 (15.5)% $ 7,157.1 (15.5)%

Selected Worldwide Equipment Rental Operating Data

Rental and rental related
revenue (in millions)
(a)(b) $ 248.9 (33.6)% $ 750.9 (31.9)%
Same store revenue growth,
including initiatives
(a)(b) (33.4)% N/M (28.9)% N/M
Average acquisition cost of
revenue earning equipment
operated during period
(in millions) $ 2,833.7 (16.9)% $ 2,888.8 (16.3)%
Revenue earning equipment,
net (in millions) $ 1,893.1 (21.5)% $ 1,893.1 (21.5)%

Other Financial Data (in millions)

Cash flows provided by
operating activities $ 608.8 (33.9)% $ 1,307.2 (32.3)%
Levered after-tax cash flow
before fleet growth (a) (69.4) (89.3)% 308.5 N/M
Levered after-tax cash flow
after fleet growth (a) 369.1 N/M 178.1 N/M
Total net cash flow (a) 70.8 N/M 703.6 N/M
EBITDA (a) 796.2 (10.5)% 2,021.3 (19.3)%
Corporate EBITDA (a) 388.1 0.4 % 760.7 (22.9)%

Selected Balance Sheet Data (in millions)

September 30, December 31,
2009 2008
--------- ---------
Cash and cash equivalents $ 926.7 $ 594.3
Total revenue earning
equipment, net 9,050.2 8,691.5
Total assets 16,156.7 16,451.4
Total debt 10,348.4 10,972.3
Net corporate debt (a) 3,638.9 3,817.0
Net fleet debt (a) 5,378.1 5,829.6
Total net debt (a) 9,017.0 9,646.6
Total equity 2,120.9 1,488.3

(a) Represents a non-GAAP measure, see the accompanying
reconciliations and definitions.
(b) Based on 12/31/08 foreign exchange rates.
N/M Percentage change not meaningful.

Table 5
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS MEASURES
(In millions, except per share amounts)
Unaudited

ADJUSTED PRE-TAX INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS)

Three Months Ended September 30, 2009
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------
Total revenues: $ 1,757.7 $ 280.5 $ 3.2 $ 2,041.4
---------- ---------- ---------- ----------
Expenses:
Direct operating and
selling, general and
administrative 1,083.1 189.8 25.4 1,298.3
Depreciation of revenue
earning equipment 425.4 73.7 - 499.1
Interest expense 76.0 13.9 79.4 169.3
Interest and other income,
net (1.0) 0.1 (0.2) (1.1)
---------- ---------- ---------- ----------
Total expenses 1,583.5 277.5 104.6 1,965.6
---------- ---------- ---------- ----------
Income (loss) before income
taxes 174.2 3.0 (101.4) 75.8
Adjustments:
Purchase accounting (a):
Direct operating and
selling, general and
administrative 10.4 8.8 0.5 19.7
Depreciation of revenue
earning equipment - 2.0 - 2.0
Non-cash debt charges (b) 37.7 2.2 8.6 48.5
Restructuring charges (c) 25.4 9.1 1.2 35.7
Restructuring related
charges (c) 10.6 0.1 0.7 11.4
Derivative losses (c) - - 1.9 1.9
Management transition
costs (d) - - 0.3 0.3
---------- ---------- ---------- ----------
Adjusted pre-tax income
(loss) 258.3 25.2 (88.2) 195.3
Assumed (provision) benefit
for income taxes of 34% (87.8) (8.6) 30.0 (66.4)
Noncontrolling interest - - (4.4) (4.4)
---------- ---------- ---------- ----------
Adjusted net income (loss) $ 170.5 $ 16.6 $ (62.6) $ 124.5
========== ========== ========== ==========

Adjusted diluted number of
shares outstanding 407.7

Adjusted diluted earnings
per share $ 0.31

Three Months Ended September 30, 2008
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------
Total revenues: $ 1,986.5 $ 433.1 $ 2.3 $ 2,421.9
---------- ---------- ---------- ----------
Expenses:
Direct operating and
selling, general and
administrative 1,279.2 289.5 17.4 1,586.1
Depreciation of revenue
earning equipment 504.2 90.8 - 595.0
Interest expense 119.4 26.2 74.5 220.1
Interest and other income,
net (2.1) (0.3) (3.1) (5.5)
---------- ---------- ---------- ----------
Total expenses 1,900.7 406.2 88.8 2,395.7
---------- ---------- ---------- ----------
Income (loss) before income
taxes 85.8 26.9 (86.5) 26.2
Adjustments:
Purchase accounting (a):
Direct operating and
selling, general and
administrative 9.9 8.7 0.5 19.1
Depreciation of revenue
earning equipment - 6.1 - 6.1
Non-cash debt charges (b) 13.5 2.6 4.1 20.2
Restructuring charges (c) 36.4 36.6 1.9 74.9
Restructuring related
charges (c) 8.3 0.8 1.0 10.1
Derivative losses (c) 15.0 - - 15.0
Vacation accrual
adjustment (c) (1.8) (0.6) (0.1) (2.5)
---------- ---------- ---------- ----------
Adjusted pre-tax income
(loss) 167.1 81.1 (79.1) 169.1
Assumed (provision) benefit
for income taxes of 34% (56.8) (27.6) 26.9 (57.5)
Noncontrolling interest - - (5.6) (5.6)
---------- ---------- ---------- ----------
Adjusted net income (loss) $ 110.3 $ 53.5 $ (57.8) $ 106.0
========== ========== ========== ==========

Adjusted diluted number of
shares outstanding 325.5

Adjusted diluted earnings
per share $ 0.33

Nine Months Ended September 30, 2009
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------
Total revenues: $ 4,515.3 $ 837.0 $ 8.5 $ 5,360.8
---------- ---------- ---------- ----------
Expenses:
Direct operating and
selling, general and
administrative 2,909.0 570.7 70.8 3,550.5
Depreciation of revenue
earning equipment 1,220.6 247.6 - 1,468.2
Interest expense 224.1 42.2 232.0 498.3
Interest and other income,
net (2.8) - (49.8) (52.6)
---------- ---------- ---------- ----------
Total expenses 4,350.9 860.5 253.0 5,464.4
---------- ---------- ---------- ----------
Income (loss) before income
taxes 164.4 (23.5) (244.5) (103.6)
Adjustments:
Purchase accounting (a):
Direct operating and
selling, general and
administrative 29.7 26.4 1.7 57.8
Depreciation of revenue
earning equipment - 11.7 - 11.7
Non-cash debt charges (b) 91.9 6.8 22.5 121.2
Restructuring charges (c) 50.3 28.9 8.0 87.2
Restructuring related
charges (c) 27.8 0.3 3.5 31.6
Derivative gains (c) - - (3.0) (3.0)
Management transition
costs (d) - - 1.0 1.0
Third party bankruptcy
reserve (d) 4.3 - - 4.3
Gain on debt buyback (e) - - (48.5) (48.5)
---------- ---------- ---------- ----------
Adjusted pre-tax income
(loss) 368.4 50.6 (259.3) 159.7
Assumed (provision) benefit
for income taxes of 34% (125.3) (17.2) 88.2 (54.3)
Noncontrolling interest - - (11.4) (11.4)
---------- ---------- ---------- ----------
Adjusted net income (loss) $ 243.1 $ 33.4 $ (182.5) $ 94.0
========== ========== ========== ==========

Adjusted diluted number of
shares outstanding 407.7

Adjusted diluted earnings
per share $ 0.23

Nine Months Ended September 30, 2008
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------
Total revenues: $ 5,442.8 $ 1,287.4 $ 6.1 $ 6,736.3
---------- ---------- ---------- ----------
Expenses:
Direct operating and
selling, general and
administrative 3,516.8 822.5 58.3 4,397.6
Depreciation of revenue
earning equipment 1,399.7 259.0 - 1,658.7
Interest expense 322.6 88.5 226.0 637.1
Interest and other income,
net (5.7) (1.1) (13.6) (20.4)
---------- ---------- ---------- ----------
Total expenses 5,233.4 1,168.9 270.7 6,673.0
---------- ---------- ---------- ----------
Income (loss) before income
taxes 209.4 118.5 (264.6) 63.3
Adjustments:
Purchase accounting (a):
Direct operating and
selling, general and
administrative 30.6 26.6 1.5 58.7
Depreciation of revenue
earning equipment (0.1) 15.8 - 15.7
Non-cash debt charges (b) 37.9 8.0 10.5 56.4
Restructuring charges (c) 64.7 55.0 7.5 127.2
Restructuring related
charges (c) 16.1 2.0 2.9 21.0
Derivative gains (c) (2.8) - - (2.8)
Management transition
costs (d) - - 1.3 1.3
---------- ---------- ---------- ----------
Adjusted pre-tax income
(loss) 355.8 225.9 (240.9) 340.8
Assumed (provision) benefit
for income taxes of 34% (121.0) (76.8) 81.9 (115.9)
Noncontrolling interest - - (16.1) (16.1)
---------- ---------- ---------- ----------
Adjusted net income (loss) $ 234.8 $ 149.1 $ (175.1) $ 208.8
========== ========== ========== ==========

Adjusted diluted number of
shares outstanding 325.5

Adjusted diluted earnings
per share $ 0.64

(a) Represents the purchase accounting effects of the acquisition of all
of Hertz's common stock on December 21, 2005, and any subsequent
acquisitions on our results of operations relating to increased
depreciation and amortization of tangible and intangible assets and
accretion of revalued workers' compensation and public liability and
property damage liabilities.
(b) Represents non-cash debt charges relating to the amortization of
deferred debt financing costs and debt discounts. For the three and
nine months ended September 30, 2009, also includes $22.4 million
and $52.2 million, respectively, associated with the amortization of
amounts pertaining to the de-designation of our interest rate swaps
as effective hedging instruments. For the three and nine months
ended September 30, 2008, also includes $2.8 million and
$7.8 million, respectively, associated with the ineffectiveness of
our interest rate swaps.
(c) Amounts are included within direct operating and selling, general
and administrative expense in our statement of operations.
(d) Amounts are included within selling, general and administrative
expense in our statement of operations.
(e) Amounts are included within interest and other income, net in our
statement of operations.

Table 6
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS MEASURES
(In millions)
Unaudited

EBITDA, CORPORATE EBITDA, UNLEVERED PRE-TAX CASH FLOW,
LEVERED AFTER-TAX CASH FLOW BEFORE
FLEET GROWTH AND AFTER FLEET GROWTH

Three Months Ended September 30, 2009
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Income (loss) before income
taxes $ 174.2 $ 3.0 $ (101.4) $ 75.8
Depreciation, amortization
and other purchase
accounting 463.1 91.3 2.2 556.6
Interest, net of interest
income 75.0 14.0 79.2 168.2
Noncontrolling interest - - (4.4) (4.4)
---------- ---------- ---------- ----------
EBITDA 712.3 108.3 (24.4) 796.2
Adjustments:
Car rental fleet interest (78.5) - - (78.5)
Car rental fleet
depreciation (425.4) - - (425.4)
Non-cash expenses and
charges (a) 37.4 - 11.1 48.5
Extraordinary, unusual or
non-recurring gains
and losses (b) 36.0 9.2 2.1 47.3
---------- ---------- ---------- ----------
Corporate EBITDA $ 281.8 $ 117.5 $ (11.2) 388.1
========== ========== ==========
Equipment rental
maintenance capital
expenditures, net (69.0)
Non-fleet capital
expenditures, net (10.1)
Changes in working capital (444.6)
Changes in other assets
and liabilities 149.9
----------
Unlevered pre-tax cash
flow (c) 14.3
Corporate net cash
interest (77.0)
Corporate cash taxes (6.7)
----------
Levered after-tax cash flow
before fleet growth (c) (69.4)
Equipment rental fleet
growth capital
expenditures 50.2
Car rental net fleet
equity requirement 388.3
----------
Levered after-tax cash flow
after fleet growth (c) $ 369.1
==========

Three Months Ended September 30, 2008
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Income (loss) before income
taxes $ 85.8 $ 26.9 $ (86.5) $ 26.2
Depreciation, amortization
and other purchase
accounting 542.6 110.1 1.5 654.2
Interest, net of interest
income 117.3 25.9 71.4 214.6
Noncontrolling interest - - (5.6) (5.6)
---------- ---------- ---------- ----------
EBITDA 745.7 162.9 (19.2) 889.4
Adjustments:
Car rental fleet interest (119.9) - - (119.9)
Car rental fleet
depreciation (504.2) - - (504.2)
Non-cash expenses and
charges (a) 28.7 - 10.2 38.9
Extraordinary, unusual or
non-recurring
gains and losses (b) 42.9 36.8 2.8 82.5
---------- ---------- ---------- ----------
Corporate EBITDA $ 193.2 $ 199.7 $ (6.2) 386.7
========== ========== ==========
Equipment rental
maintenance capital
expenditures, net (80.5)
Non-fleet capital
expenditures, net (12.3)
Changes in working capital (654.4)
Changes in other assets
and liabilities (197.0)
----------
Unlevered pre-tax cash
flow (c) (557.5)
Corporate net cash
interest (86.3)
Corporate cash taxes (7.7)
----------
Levered after-tax cash flow
before fleet growth (c) (651.5)
Equipment rental fleet
growth capital
expenditures 191.0
Car rental net fleet
equity requirement 125.4
----------
Levered after-tax cash flow
after fleet growth (c) $ (335.1)
==========

Nine Months Ended September 30, 2009
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Income (loss) before income
taxes $ 164.4 $ (23.5) $ (244.5) $ (103.6)
Depreciation, amortization
and other purchase
accounting 1,335.2 300.7 6.2 1,642.1
Interest, net of interest
income 221.3 42.2 230.7 494.2
Noncontrolling interest - - (11.4) (11.4)
---------- ---------- ---------- ----------
EBITDA 1,720.9 319.4 (19.0) 2,021.3
Adjustments:
Car rental fleet interest (229.0) - - (229.0)
Car rental fleet
depreciation (1,220.6) - - (1,220.6)
Non-cash expenses and
charges (a) 90.8 - 27.6 118.4
Extraordinary, unusual or
non-recurring
gains and losses (b) 82.4 29.2 (41.0) 70.6
---------- ---------- ---------- ----------
Corporate EBITDA $ 444.5 $ 348.6 $ (32.4) 760.7
========== ========== ==========
Equipment rental
maintenance capital
expenditures, net (228.8)
Non-fleet capital
expenditures, net (45.1)
Changes in working capital (271.4)
Changes in other assets
and liabilities 336.8
----------
Unlevered pre-tax cash
flow (c) 552.2
Corporate net cash
interest (223.0)
Corporate cash taxes (20.7)
----------
Levered after-tax cash flow
before fleet growth (c) 308.5
Equipment rental fleet
growth capital
expenditures 285.2
Car rental net fleet
equity requirement (415.6)
----------
Levered after-tax cash flow
after fleet growth (c) $ 178.1
==========

Nine Months Ended September 30, 2008
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Income (loss) before income
taxes $ 209.4 $ 118.5 $ (264.6) $ 63.3
Depreciation, amortization
and other purchase
accounting 1,519.7 315.6 4.6 1,839.9
Interest, net of interest
income 316.9 87.4 212.4 616.7
Noncontrolling interest - - (16.1) (16.1)
---------- ---------- ---------- ----------
EBITDA 2,046.0 521.5 (63.7) 2,503.8
Adjustments:
Car rental fleet interest (322.2) - - (322.2)
Car rental fleet
depreciation (1,399.7) - - (1,399.7)
Non-cash expenses and
charges (a) 49.3 - 20.3 69.6
Extraordinary, unusual or
non-recurring
gains and losses (b) 66.0 57.0 11.7 134.7
---------- ---------- ---------- ----------
Corporate EBITDA $ 439.4 $ 578.5 $ (31.7) 986.2
========== ========== ==========
Equipment rental
maintenance capital
expenditures, net (232.0)
Non-fleet capital
expenditures, net (106.5)
Changes in working capital (323.1)
Changes in other assets
and liabilities (288.3)
----------
Unlevered pre-tax cash
flow (c) 36.3
Corporate net cash
interest (269.5)
Corporate cash taxes (22.6)
----------
Levered after-tax cash flow
before fleet growth (c) (255.8)
Equipment rental fleet
growth capital
expenditures 277.6
Car rental net fleet
equity requirement (284.6)
----------
Levered after-tax cash flow
after fleet growth (c) $ (262.8)
==========

(a) As defined in the credit agreements for the senior credit facilities,
Corporate EBITDA excludes the impact of certain non-cash expenses and
charges. The adjustments reflect the following:

NON-CASH EXPENSES AND CHARGES
Three Months Ended September 30, 2009
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Non-cash amortization of
debt costs included in
car rental fleet interest $ 37.4 $ - $ - $ 37.4
Non-cash stock-based
employee compensation
charges - - 9.1 9.1
Derivative losses - - 2.0 2.0
---------- ---------- ---------- ----------
Total non-cash expenses
and charges $ 37.4 $ - $ 11.1 $ 48.5
========== ========== ========== ==========

NON-CASH EXPENSES AND CHARGES
Three Months Ended September 30, 2008
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Non-cash amortization of
debt costs included in
car rental fleet interest $ 13.7 $ - $ - $ 13.7
Non-cash stock-based
employee compensation
charges - - 6.8 6.8
Non-cash charges for public
liability and property
damage - - 3.4 3.4
Derivative losses 15.0 - - 15.0
---------- ---------- ---------- ----------
Total non-cash expenses
and charges $ 28.7 $ - $ 10.2 $ 38.9
========== ========== ========== ==========

NON-CASH EXPENSES AND CHARGES
Nine Months Ended September 30, 2009
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Non-cash amortization of
debt costs included in
car rental fleet interest $ 90.8 $ - $ - $ 90.8
Non-cash stock-based
employee compensation
charges - - 25.6 25.6
Derivative losses - - 2.0 2.0
---------- ---------- ---------- ----------
Total non-cash expenses
and charges $ 90.8 $ - $ 27.6 $ 118.4
========== ========== ========== ==========

NON-CASH EXPENSES AND CHARGES
Nine Months Ended September 30, 2008
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Non-cash amortization of
debt costs included
in car rental fleet
interest $ 37.3 $ - $ - $ 37.3
Non-cash stock-based
employee compensation
charges - - 20.3 20.3
Derivative losses 12.0 - - 12.0
---------- ---------- ---------- ----------
Total non-cash expenses
and charges $ 49.3 $ - $ 20.3 $ 69.6
========== ========== ========== ==========

(b) As defined in the credit agreements for the senior credit facilities,
Corporate EBITDA excludes the impact of extraordinary, unusual or
non-recurring gains or losses or charges or credits.
The adjustments reflect the following:

EXTRAORDINARY, UNUSUAL OR
NON-RECURRING ITEMS Three Months Ended September 30, 2009
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Restructuring charges $ 25.4 $ 9.1 $ 1.2 $ 35.7
Restructuring related
charges 10.6 0.1 0.7 11.4
Management transition costs - - 0.3 0.3
Derivative gains - - (0.1) (0.1)
---------- ---------- ---------- ----------
Total extraordinary,
unusual or non-recurring
items $ 36.0 $ 9.2 $ 2.1 $ 47.3
========== ========== ========== ==========

EXTRAORDINARY, UNUSUAL OR
NON-RECURRING ITEMS Three Months Ended September 30, 2008
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Restructuring charges $ 36.4 $ 36.6 $ 1.9 $ 74.9
Restructuring related
charges 8.3 0.8 1.0 10.1
Vacation accrual adjustment (1.8) (0.6) (0.1) (2.5)
---------- ---------- ---------- ----------
Total extraordinary,
unusual or non-recurring
items $ 42.9 $ 36.8 $ 2.8 $ 82.5
========== ========== ========== ==========

EXTRAORDINARY, UNUSUAL OR
NON-RECURRING ITEMS Nine Months Ended September 30, 2009
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Restructuring charges $ 50.3 $ 28.9 $ 8.0 $ 87.2
Restructuring related
charges 27.8 0.3 3.5 31.6
Third-party bankruptcy
reserve 4.3 - - 4.3
Gain on debt buyback - - (48.5) (48.5)
Derivative gains - - (5.0) (5.0)
Management transition costs - - 1.0 1.0
---------- ---------- ---------- ----------
Total extraordinary,
unusual or non-recurring
items $ 82.4 $ 29.2 $ (41.0) $ 70.6
========== ========== ========== ==========

EXTRAORDINARY, UNUSUAL OR
NON-RECURRING ITEMS Nine Months Ended September 30, 2008
----------------------------------------------
Other
Car Equipment Reconciling
Rental Rental Items Total
---------- ---------- ---------- ----------

Restructuring charges $ 64.7 $ 55.0 $ 7.5 $ 127.2
Restructuring related
charges 16.1 2.0 2.9 21.0
Derivative gains (14.8) - - (14.8)
Management transition costs - - 1.3 1.3
---------- ---------- ---------- ----------
Total extraordinary,
unusual or non-recurring
items $ 66.0 $ 57.0 $ 11.7 $ 134.7
========== ========== ========== ==========

(c) Amounts include the effect of fluctuations in foreign currency.

Table 7
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS MEASURES
(In millions, except as noted)
Unaudited

RECONCILIATION FROM Three Months Ended Nine Months Ended
OPERATING CASH FLOWS September 30, September 30,
TO EBITDA: ---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------

Net cash provided by
operating activities $ 608.8 $ 921.2 $ 1,307.2 $ 1,929.9
Amortization of debt costs (26.1) (17.2) (69.0) (48.4)
Derivative gains (2.0) (15.0) (2.0) (12.0)
Loss (gain) on sale of
property and equipment (0.2) 1.8 1.1 9.4
Amortization and
ineffectiveness of
cash flow hedges (22.4) (2.8) (52.2) (7.8)
Stock-based compensation
charges (10.1) (6.8) (26.6) (20.3)
Asset writedowns (13.4) (23.5) (26.5) (34.1)
Noncontrolling interest (4.4) (5.6) (11.4) (16.1)
Deferred income taxes (80.2) 15.8 (99.9) (5.0)
Provision (benefit) for
taxes on income 6.9 2.9 (19.9) 36.0
Interest expense, net of
interest income 168.2 214.6 494.2 616.7
Changes in assets and
liabilities, net of
provision for losses
on doubtful accounts 171.1 (196.0) 526.3 55.5
---------- ---------- ---------- ----------
EBITDA $ 796.2 $ 889.4 $ 2,021.3 $ 2,503.8
========== ========== ========== ==========

NET CORPORATE DEBT,
NET FLEET DEBT September 30, June 30, December 31, September 30,
AND TOTAL NET DEBT 2009 2009 2008 2008
---------- ---------- ---------- ----------

Corporate Debt
Debt, less: $ 10,348.4 $ 9,795.8 $ 10,972.3 $ 12,844.2
U.S Fleet Debt and
Pre-Acquisition Notes 3,546.2 3,370.2 4,254.5 4,745.8
International Fleet Debt
and other facilities 1,843.0 1,556.0 1,871.4 2,470.7
Fleet Financing Facility 144.6 144.5 149.3 154.2
Canadian Fleet Financing
Facility 126.8 53.0 111.6 268.7
---------- ---------- ---------- ----------
Fleet Debt $ 5,660.6 $ 5,123.7 $ 6,386.8 $ 7,639.4
========== ========== ========== ==========
Corporate Debt $ 4,687.8 $ 4,672.1 $ 4,585.5 $ 5,204.8
========== ========== ========== ==========

Corporate Restricted Cash
Restricted Cash, less: $ 404.7 $ 188.5 $ 731.4 $ 514.0
Restricted Cash Associated
with Fleet Debt (282.5) (95.3) (557.2) (288.2)
---------- ---------- ---------- ----------
Corporate Restricted
Cash $ 122.2 $ 93.2 $ 174.2 $ 225.8
========== ========== ========== ==========

Net Corporate Debt
Corporate Debt, less: $ 4,687.8 $ 4,672.1 $ 4,585.5 $ 5,204.8
Cash and Equivalents (926.7) (570.9) (594.3) (731.5)
Corporate Restricted Cash (122.2) (93.2) (174.2) (225.8)
---------- ---------- ---------- ----------
Net Corporate Debt $ 3,638.9 $ 4,008.0 $ 3,817.0 $ 4,247.5
========== ========== ========== ==========

Net Fleet Debt
Fleet Debt, less: $ 5,660.6 $ 5,123.7 $ 6,386.8 $ 7,639.4
Restricted Cash Associated
with Fleet Debt (282.5) (95.3) (557.2) (288.2)
---------- ---------- ---------- ----------
Net Fleet Debt $ 5,378.1 $ 5,028.4 $ 5,829.6 $ 7,351.2
========== ========== ========== ==========

Total Net Debt $ 9,017.0 $ 9,036.4 $ 9,646.6 $ 11,598.7
========== ========== ========== ==========

NET CORPORATE DEBT,
NET FLEET DEBT June 30, December 31, September 30,
AND TOTAL NET DEBT 2008 2007 2007
---------- ---------- ----------

Corporate Debt
Debt, less: $ 12,693.8 $ 11,960.1 $ 13,035.0
U.S Fleet Debt and
Pre-Acquisition Notes 4,698.0 4,603.5 5,099.6
International Fleet Debt
and other facilities 2,765.9 2,228.0 2,487.4
Fleet Financing Facility 158.1 170.4 166.3
Canadian Fleet Financing
Facility 245.0 155.4 272.7
---------- ---------- ----------
Fleet Debt $ 7,867.0 $ 7,157.3 $ 8,026.0
========== ========== ==========
Corporate Debt $ 4,826.8 $ 4,802.8 $ 5,009.0
========== ========== ==========

Corporate Restricted Cash
Restricted Cash, less: $ 161.4 $ 661.0 $ 430.2
Restricted Cash Associated
with Fleet Debt (58.4) (573.1) (390.0)
---------- ---------- ----------
Corporate Restricted
Cash $ 103.0 $ 87.9 $ 40.2
========== ========== ==========

Net Corporate Debt
Corporate Debt, less: $ 4,826.8 $ 4,802.8 $ 5,009.0
Cash and Equivalents (811.4) (730.2) (397.3)
Corporate Restricted Cash (103.0) (87.9) (40.2)
---------- ---------- ----------
Net Corporate Debt $ 3,912.4 $ 3,984.7 $ 4,571.5
========== ========== ==========

Net Fleet Debt
Fleet Debt, less: $ 7,867.0 $ 7,157.3 $ 8,026.0
Restricted Cash Associated
with Fleet Debt (58.4) (573.1) (390.0)
---------- ---------- ----------
Net Fleet Debt $ 7,808.6 $ 6,584.2 $ 7,636.0
========== ========== ==========

Total Net Debt $ 11,721.0 $ 10,568.9 $ 12,207.5
========== ========== ==========

Three Months Ended Nine Months Ended
September 30, September 30,
CAR RENTAL RATE REVENUE PER ---------------------- ----------------------
TRANSACTION DAY (a) 2009 2008 2009 2008
---------- ---------- ---------- ----------

Car rental revenue per
statement of
operations (b) $ 1,724.9 $ 1,946.1 $ 4,436.7 $ 5,340.0
Non-rental rate revenue (c) (219.6) (262.8) (590.6) (740.2)
Foreign currency adjustment (34.0) (90.4) (16.7) (257.0)
---------- ---------- ---------- ----------
Rental rate revenue $ 1,471.3 $ 1,592.9 $ 3,829.4 $ 4,342.8
========== ========== ========== ==========
Transactions days (in
thousands) 33,456 35,525 89,293 99,041
Rental rate revenue per
transaction
day (in whole dollars) $ 43.98 $ 44.84 $ 42.89 $ 43.85

EQUIPMENT RENTAL Three Months Ended Nine Months Ended
AND RENTAL September 30, September 30,
RELATED REVENUE (a) ---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------

Equipment rental revenue
per statement
of operations $ 280.3 $ 432.9 $ 836.4 $ 1,286.8
Equipment sales and other
revenue (26.3) (44.8) (82.2) (137.4)
Foreign currency adjustment (5.1) (13.4) (3.3) (46.2)
---------- ---------- ---------- ----------
Rental and rental related
revenue $ 248.9 $ 374.7 $ 750.9 $ 1,103.2
========== ========== ========== ==========

(a) Based on 12/31/08 foreign exchange rates.
(b) Includes U.S. off-airport revenues of $277.1 million and $279.9
million for the three months ended September 30, 2009 and 2008,
respectively, and $722.8 million and $758.2 million for the nine
months ended September 30, 2009 and 2008, respectively.
(c) Consists of domestic revenues of $149.4 million and $185.8 million
and international revenues of $70.2 million and $77.0 million for
the three months ended September 30, 2009 and 2008, respectively,
and domestic revenues of $411.0 million and $528.8 million and
international revenues of $179.6 million and $211.4 million for the
nine months ended September 30, 2009 and 2008, respectively.

Table 8
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS MEASURES
(In millions)
Unaudited

EBITDA, CORPORATE EBITDA, UNLEVERED PRE-TAX CASH FLOW, LEVERED
AFTER-TAX CASH FLOW BEFORE FLEET GROWTH AND
AFTER FLEET GROWTH

Last Twelve Nine Three
Months Ended Months Ended Months Ended
September 30, September 30, December 31,
2009 2009 2008
------------- ------------- -------------

Loss before income taxes $ (1,549.8) $ (103.6) $ (1,446.2)
Depreciation, amortization
and other purchase
accounting 2,235.5 1,642.1 593.4
Interest, net of interest
income 722.7 494.2 228.5
Impairment charges 1,168.9 - 1,168.9
Noncontrolling interest (16.0) (11.4) (4.6)
------------- ------------- -------------
EBITDA 2,561.3 2,021.3 540.0
Adjustments:
Car rental fleet interest (357.5) (229.0) (128.5)
Car rental fleet depreciation (1,664.6) (1,220.6) (444.0)
Non-cash expenses and charges 164.6 118.4 46.2
Non-cash expenses and charges
to arrive at LTM (a) (3.5) - -
Extraordinary, unusual or
non-recurring gains and
losses 173.8 70.6 103.2
------------- ------------- -------------
Corporate EBITDA 874.1 760.7 116.9
Equipment rental maintenance
capital expenditures, net (309.1) (228.8) (80.3)
Non-fleet capital
expenditures, net (43.5) (45.1) 1.6
Changes in working capital 43.9 (271.4) 315.3
Changes in other assets
and liabilities 54.2 336.8 (282.6)
Changes in other assets and
liabilities to arrive at
LTM (a) 3.5 - -
------------- ------------- -------------
Unlevered pre-tax cash flow (b) 623.1 552.2 70.9
Corporate net cash interest (311.8) (223.0) (88.8)
Corporate cash taxes (31.5) (20.7) (10.8)
------------- ------------- -------------
Levered after-tax cash flow
before fleet growth (b) 279.8 308.5 (28.7)
Equipment rental fleet growth
capital expenditures 500.3 285.2 215.1
Car rental net fleet
equity requirement (171.5) (415.6) 244.1
------------- ------------- -------------
Levered after-tax cash flow
after fleet growth (b) $ 608.6 $ 178.1 $ 430.5
============= ============= =============

Last Twelve Nine Three
Months Ended Months Ended Months Ended
September 30, September 30, December 31,
2008 2008 2007
------------- ------------- -------------

Income before income taxes $ 144.6 $ 63.3 $ 81.3
Depreciation, amortization
and other purchase
accounting 2,403.2 1,839.9 563.3
Interest, net of interest
income 830.8 616.7 214.1
Noncontrolling interest (21.4) (16.1) (5.3)
------------- ------------- -------------
EBITDA 3,357.2 2,503.8 853.4
Adjustments:
Car rental fleet interest (429.3) (322.2) (107.1)
Car rental fleet depreciation (1,815.4) (1,399.7) (415.7)
Non-cash expenses and charges 96.9 69.6 27.3
Non-cash expenses and charges
to arrive at LTM (a) (2.9) - -
Extraordinary, unusual or
non-recurring gains and
losses 162.0 134.7 27.3
------------- ------------- -------------
Corporate EBITDA 1,368.5 986.2 385.2
Equipment rental maintenance
capital expenditures, net (310.7) (232.0) (78.7)
Non-fleet capital
expenditures, net (130.4) (106.5) (23.9)
Changes in working capital (146.5) (323.1) 176.6
Changes in other assets
and liabilities (322.2) (288.3) (33.9)
Changes in other assets and
liabilities to arrive at
LTM (a) 2.9 - -
------------- ------------- -------------
Unlevered pre-tax cash flow (b) 461.6 36.3 425.3
Corporate net cash interest (368.8) (269.5) (99.3)
Corporate cash taxes (32.5) (22.6) (9.9)
------------- ------------- -------------
Levered after-tax cash flow
before fleet growth (b) 60.3 (255.8) 316.1
Equipment rental fleet growth
capital expenditures 293.3 277.6 15.7
Car rental net fleet
equity requirement (29.6) (284.6) 255.0
------------- ------------- -------------
Levered after-tax cash flow
after fleet growth (b) $ 324.0 $ (262.8) $ 586.8
============= ============= =============

(a) Adjustment necessary due to the nature of the calculation of non-cash
expenses and charges where, on a quarterly basis the cash payments
for a specific liability may exceed the related non-cash expense, but
not on a cumulative last twelve month basis.
(b) Amounts include the effect of fluctuations in foreign currency.

Table 9
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions)
Unaudited

TOTAL NET CASH FLOW

Three Three Nine Nine
Months Ended Months Ended Months Ended Months Ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
------------- ------------- ------------- -------------

Net cash
provided by
operating
activities $ 608.8 $ 921.2 $ 1,307.2 $ 1,929.9
Net cash used
in investing
activities (926.8) (1,399.1) (843.8) (2,892.0)
Net change in
restricted cash 213.2 355.5 (330.6) (146.1)
Payment of
financing
costs (34.1) (23.3) (40.9) (33.8)
Payment of debt
offering costs (0.3) - (15.3) -
Proceeds from
exercise of
stock options 2.1 1.2 4.8 6.8
Proceeds from
employee stock
purchase plan 0.4 - 1.8 -
Distributions
to noncontrol-
ling interest (3.9) (7.0) (11.9) (13.0)
Proceeds from
sale of stock
and conversion
feature on debt 200.1 - 646.9 -
Proceeds from
disgorgement
of stockholder
short-swing
profits - - - 0.1
Cash overdraft
reclass 11.3 (6.2) (14.6) (25.8)
------------- ------------- ------------- -------------

Total net cash
flow $ 70.8 $ (157.7) $ 703.6 $ (1,173.9)
============= ============= ============= =============

Twelve Nine Three
Months Ended Months Ended Months Ended
September 30, September 30, December 31,
2009 2009 2008
------------- ------------- -------------

Net cash
provided by
operating
activities $ 1,921.5 $ 1,307.2 $ 614.3
Net cash
provided by
(used in)
investing
activities 139.9 (843.8) 983.7
Net change in
restricted cash (112.7) (330.6) 217.9
Payment of
financing
costs (68.3) (40.9) (27.4)
Payment of debt
offering costs (15.3) (15.3) -
Proceeds from
exercise of
stock options 4.8 4.8 -
Proceeds from
employee stock
purchase plan 1.8 1.8 -
Distributions
to noncontrol-
ling interest (23.1) (11.9) (11.2)
Proceeds from
sale of stock
and conversion
feature on debt 646.9 646.9 -
Cash overdraft
reclass (24.9) (14.6) (10.3)
------------- ------------- -------------

Total net cash
flow $ 2,470.6 $ 703.6 $ 1,767.0
============= ============= =============

Twelve Nine Three
Months Ended Months Ended Months Ended
September 30, September 30, December 31,
2008 2008 2007
------------- ------------- -------------

Net cash
provided by
operating
activities $ 2,723.6 $ 1,929.9 $ 793.7
Net cash
provided by
(used in)
investing
activities (2,175.4) (2,892.0) 716.6
Net change in
restricted
cash 83.8 (146.1) 229.9
Payment of
financing
costs (49.4) (33.8) (15.6)
Proceeds from
exercise of
stock options 8.1 6.8 1.3
Distributions
to noncontrol-
ling interest (20.7) (13.0) (7.7)
Proceeds from
disgorgement
of stockholder
short-swing
profits 0.1 0.1 -
Cash overdraft
reclass (14.9) (25.8) 10.9
------------- ------------- -------------

Total net cash
flow $ 555.2 $ (1,173.9) $ 1,729.1
============= ============= =============

Exhibit 1

Non-GAAP Measures: Definitions and Use/Importance

Hertz Global Holdings, Inc. ("Hertz Holdings") is our top-level holding
company. The Hertz Corporation ("Hertz") is our primary operating company.
The term "GAAP" refers to accounting principles generally accepted in the
United States of America.

Definitions of non-GAAP measures utilized in Hertz Holdings' October 29,
2009 Press Release are set forth below. Also set forth below is a summary
of the reasons why management of Hertz Holdings and Hertz believes that
the presentation of the non-GAAP financial measures included in the Press
Release provide useful information regarding Hertz Holdings' and Hertz's
financial condition and results of operations and additional purposes, if
any, for which management of Hertz Holdings and Hertz utilize the non-GAAP
measures.

1. Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA"), Corporate EBITDA and Corporate EBITDA Retention

We present EBITDA and Corporate EBITDA to provide investors with
supplemental measures of our operating performance and liquidity and, in
the case of Corporate EBITDA, information utilized in the calculation of
the financial covenants under Hertz's senior credit facilities. EBITDA is
defined as consolidated net income before net interest expense,
consolidated income taxes and consolidated depreciation and amortization.
Corporate EBITDA differs from the term "EBITDA" as it is commonly used.
Corporate EBITDA means "EBITDA" as that term is defined under Hertz's
senior credit facilities, which is generally consolidated net income
before net interest expense (other than interest expense relating to
certain car rental fleet financing), consolidated income taxes,
consolidated depreciation (other than depreciation related to the car
rental fleet) and amortization and before certain other items, in each
case as more fully defined in the agreements governing Hertz's senior
credit facilities. The other items excluded in this calculation include,
but are not limited to: non-cash expenses and charges; extraordinary,
unusual or non-recurring gains or losses; gains or losses associated with
the sale or write-down of assets not in the ordinary course of business;
and earnings to the extent of cash dividends or distributions paid from
non-controlled affiliates. Further, the covenants in Hertz's senior
credit facilities are calculated using Corporate EBITDA for the most
recent four fiscal quarters as a whole. As a result, the measure can be
disproportionately affected by a particularly strong or weak quarter.
Further, it may not be comparable to the measure for any subsequent
four-quarter period or for any complete fiscal year. Corporate EBITDA
retention is calculated as one minus the year over year change in
Corporate EBITDA divided by the year over year change in revenue; see
Table 3 for amounts utilized in the calculation.

Management uses EBITDA and Corporate EBITDA as performance and cash flow
metrics for internal monitoring and planning purposes, including the
preparation of our annual operating budget and monthly operating reviews,
as well as to facilitate analysis of investment decisions. In addition,
both metrics are important to allow us to evaluate profitability and make
performance trend comparisons between us and our competitors. Further, we
believe EBITDA and Corporate EBITDA are frequently used by securities
analysts, investors and other interested parties in the evaluation of
companies in our industries.

EBITDA is also used by management and investors to evaluate our operating
performance exclusive of financing costs and depreciation policies.
Further, because we have two business segments that are financed
differently and have different underlying depreciation characteristics,
EBITDA enables investors to isolate the effects on profitability of
operating metrics such as revenue, operating expenses and selling, general
and administrative expenses. In addition to its use to monitor performance
trends, EBITDA provides a comparative metric to management and investors
that is consistent across companies with different capital structures and
depreciation policies. This enables management and investors to compare
our performance on a consolidated basis and on a segment basis to that of
our peers. In addition, our management uses consolidated EBITDA as a
proxy for cash flow available to finance fleet expenditures and the costs
of our capital structure on a day-to-day basis so that we can more easily
monitor our cash flows when a full statement of cash flows is not
available.

Corporate EBITDA also serves as an important measure of our performance.
Corporate EBITDA for our car rental segment enables us to assess our
operating performance inclusive of fleet management performance,
depreciation assumptions and the cost of financing our fleet. In addition,
Corporate EBITDA for our car rental segment allows us to compare our
performance, inclusive of fleet mix and financing decisions, to the
performance of our competitors. Since most of our competitors utilize
asset-backed fleet debt to finance fleet acquisitions, this measure is
relevant for evaluating our operating efficiency inclusive of our fleet
acquisition and utilization. For our equipment rental segment, Corporate
EBITDA provides an appropriate measure of performance because the
investment in our equipment fleet is longer-term in nature than for our
car rental segment and therefore Corporate EBITDA allows management to
assess operating performance exclusive of interim changes in depreciation
assumptions. Further, unlike our car rental segment, our equipment rental
fleet is not financed through separate securitization-based fleet
financing facilities, but rather through our corporate debt. Corporate
EBITDA for our equipment rental segment is a key measure used to make
investment decisions because it enables us to evaluate return on
investments. For both segments, Corporate EBITDA provides a relevant
profitability metric for use in comparison of our performance against our
public peers, many of whom publicly disclose a comparable metric. In
addition, we believe that investors, analysts and rating agencies
consider EBITDA and Corporate EBITDA useful in measuring our ability to
meet our debt service obligations and make capital expenditures. Several
of Hertz's material debt covenants are based on financial ratios
utilizing Corporate EBITDA and non-compliance with those covenants could
result in the requirement to immediately repay all amounts outstanding
under those agreements, which could have a material adverse effect on our
results of operations, financial position and cash flows.

EBITDA and Corporate EBITDA are not recognized measurements under GAAP.
When evaluating our operating performance or liquidity, investors should
not consider EBITDA and Corporate EBITDA in isolation of, or as a
substitute for, measures of our financial performance and liquidity as
determined in accordance with GAAP, such as net income, operating income
or net cash provided by operating activities. EBITDA and Corporate EBITDA
may have material limitations as performance measures because they exclude
items that are necessary elements of our costs and operations. Because
other companies may calculate EBITDA and Corporate EBITDA differently than
we do, EBITDA may not be, and Corporate EBITDA as presented is not,
comparable to similarly titled measures reported by other companies.

Borrowings under Hertz's senior credit facilities are a key source of our
liquidity. Hertz's ability to borrow under these senior credit facilities
depends upon, among other things, the maintenance of a sufficient
borrowing base and compliance with the financial ratio covenants based on
Corporate EBITDA set forth in the credit agreements for Hertz's senior
credit facilities. Hertz's senior term loan facility requires the
maintenance of a specified consolidated leverage ratio and a consolidated
interest expense coverage ratio based on Corporate EBITDA, while its
senior asset-based loan facility requires that a specified consolidated
leverage ratio and consolidated fixed charge coverage ratio be maintained
for periods during which there is less than $200 million of available
borrowing capacity under the senior asset-based loan facility. These
financial covenants became applicable to Hertz beginning September 30,
2006, reflecting the four quarter period ending thereon. Failure to
comply with these financial ratio covenants would result in a default
under the credit agreements for Hertz's senior credit facilities and,
absent a waiver or an amendment from the lenders, permit the acceleration
of all outstanding borrowings under the senior credit facilities. As of
September 30, 2009, we performed the calculations associated with the
above noted financial covenants and determined that Hertz is in
compliance with such covenants.

2. Adjusted Pre-Tax Income and Profit Retention

Adjusted pre-tax income is calculated as income before income taxes and
noncontrolling interest plus non-cash purchase accounting charges,
non-cash debt charges relating to the amortization of debt financing
costs and debt discounts and certain one-time charges and non-operational
items. Adjusted pre-tax profit retention is calculated as one minus the
year over year change in adjusted pre-tax income divided by the year over
year change in revenue; see Table 3 for amounts utilized in the
calculation. Adjusted pre-tax income is important to management because
it allows management to assess operational performance of our business,
exclusive of the items mentioned above. It also allows management to
assess the performance of the entire business on the same basis as the
segment measure of profitability. Management believes that it is
important to investors for the same reasons it is important to management
and because it allows them to assess the operational performance of the
Company on the same basis that management uses internally.

3. Adjusted Net Income

Adjusted net income is calculated as adjusted pre-tax income less a
provision for income taxes derived utilizing a normalized income tax rate
(34% in 2009 and 2008) and noncontrolling interest. The normalized income
tax rate is management's estimate of our long-term tax rate. Adjusted net
income is important to management and investors because it represents our
operational performance exclusive of the effects of purchase accounting,
non-cash debt charges, one-time charges and items that are not operational
in nature or comparable to those of our competitors.

4. Adjusted Diluted Earnings Per Share

Adjusted diluted earnings per share is calculated as adjusted net income
divided by, for 2009, 407.7 million which represents the actual diluted
weighted average number of shares outstanding for the year ended December
31, 2008 plus 85 million shares offered in the 2009 common stock offerings
and for 2008, the actual diluted weighted average number of shares
outstanding for the year ended December 31, 2007 of 325.5 million.
Adjusted diluted earnings per share is important to management and
investors because it represents a measure of our operational performance
exclusive of the effects of purchase accounting adjustments, non-cash
debt charges, one-time charges and items that are not operational in
nature or comparable to those of our competitors.

5. Transaction Days

Transaction days represent the total number of days that vehicles were on
rent in a given period.

6. Car Rental Rate Revenue, Rental Rate Revenue Per Transaction Day and
Rental Rate Revenue Per Transaction

Car rental rate revenue consists of all revenue, net of discounts,
associated with the rental of cars including charges for optional
insurance products, but excluding revenue derived from fueling and
concession and other expense pass-throughs, NeverLost units in the U.S.
and certain ancillary revenue. Rental rate revenue per transaction day is
calculated as total rental rate revenue, divided by the total number of
transaction days, with all periods adjusted to eliminate the effect of
fluctuations in foreign currency. Rental rate revenue per transaction is
calculated as total rental rate revenue, divided by the total number of
transactions, with all periods adjusted to eliminate the effects of
fluctuations in foreign currency. Our management believes eliminating the
effect of fluctuations in foreign currency is appropriate so as not to
affect the comparability of underlying trends. These statistics are
important to management and investors as they represents the best
measurements of the changes in underlying pricing in the car rental
business and encompasses the elements in car rental pricing that
management has the ability to control. The optional insurance products
are packaged within certain negotiated corporate, government and
membership programs and within certain retail rates being charged. Based
upon these existing programs and rate packages, management believes that
these optional insurance products should be consistently included in the
daily pricing of car rental transactions. On the other hand, non-rental
rate revenue items such as refueling and concession pass-through expense
items are driven by factors beyond the control of management (i.e. the
price of fuel and the concession fees charged by airports). Additionally,
NeverLost units are an optional revenue product which management does not
consider to be part of their daily pricing of car rental transactions.

7. Equipment Rental and Rental Related Revenue

Equipment rental and rental related revenue consists of all revenue, net
of discounts, associated with the rental of equipment including charges
for delivery, loss damage waivers and fueling, but excluding revenue
arising from the sale of equipment, parts and supplies and certain other
ancillary revenue. Rental and rental related revenue is adjusted in all
periods to eliminate the effect of fluctuations in foreign currency. Our
management believes eliminating the effect of fluctuations in foreign
currency is appropriate so as not to affect the comparability of
underlying trends. This statistic is important to our management and to
investors as it is utilized in the measurement of rental revenue
generated per dollar invested in fleet on an annualized basis and is
comparable with the reporting of other industry participants.

8. Same Store Revenue Growth

Same store revenue growth represents the change in the current period
total same store revenue over the prior period total same store revenue
as a percentage of the prior period. The same store revenue amounts are
adjusted in all periods to eliminate the effect of fluctuations in
foreign currency. Our management believes eliminating the effect of
fluctuations in foreign currency is appropriate so as not to affect the
comparability of underlying trends.

9. Unlevered Pre-Tax Cash Flow

Unlevered pre-tax cash flow is calculated as Corporate EBITDA less
equipment rental fleet depreciation including gain (loss) on sale,
non-fleet capital expenditures, net of non-fleet disposals, plus changes
in working capital (accounts receivable, inventories, prepaid expenses,
accounts payable and accrued liabilities), and changes in other assets and
liabilities (including public liability and property damage, U.S. pension
liability, other assets and liabilities, equity and noncontrolling
interest). Unlevered pre-tax cash flow is important to management and
investors as it represents funds available to pay corporate interest and
taxes and to grow our fleet or reduce debt.

10. Levered After-Tax Cash Flow Before Fleet Growth

Levered after-tax cash flow before fleet growth is calculated as Unlevered
Pre-Tax Cash Flow less corporate net cash interest and corporate cash
taxes. Levered after-tax cash flow before fleet growth is important to
management and investors as it represents the funds available to grow our
fleet or reduce our debt.

11. Corporate Net Cash Interest (used in the calculation of Levered
After-Tax Cash Flow Before Fleet Growth)

Corporate net cash interest represents total interest expense, net of
total interest income, less car rental fleet interest expense, net of car
rental fleet interest income, and non-cash corporate interest charges.
Non-cash corporate interest charges represent the amortization of
corporate debt financing costs and corporate debt discounts. Corporate
net cash interest helps management and investors measure the ongoing
costs of financing the business exclusive of the costs associated with
the fleet financing.

12. Corporate Cash Taxes (used in the calculation of Levered After-Tax
Cash Flow Before Fleet Growth)

Corporate cash taxes represents cash paid by the Company during the period
for income taxes.

13. Levered After-Tax Cash Flow After Fleet Growth

Levered after-tax cash flow after fleet growth is calculated as Levered
After-Tax Cash Flow Before Fleet Growth less equipment rental fleet growth
capital expenditures and less gross car rental fleet growth capital
expenditures plus car rental fleet financing. Levered after-tax cash flow
after fleet growth is important to management and investors as it
represents the funds available for the reduction of corporate debt.

14. Net Corporate Debt

Net corporate debt is calculated as total debt excluding fleet debt less
cash and equivalents and corporate restricted cash. Corporate debt
consists of senior notes issued prior to the acquisition of all of Hertz's
common stock on December 21, 2005; borrowings under our Senior Term
Facility; borrowings under our Senior ABL Facility; our Senior Notes; our
Senior Subordinated Notes; our 5.25% Convertible Senior Notes and certain
other indebtedness of our domestic and foreign subsidiaries. Net Corporate
Debt is important to management, investors and ratings agencies as it
helps measure our leverage. Net Corporate Debt also assists in the
evaluation of our ability to service our non-fleet-related debt without
reference to the expense associated with the fleet debt, which is fully
collateralized by assets not available to lenders under the non-fleet
debt facilities.

15. Corporate Restricted Cash (used in the calculation of Net Corporate
Debt)

Total restricted cash includes cash and equivalents that are not readily
available for our normal disbursements. Total restricted cash and
equivalents are restricted for the purchase of revenue earning vehicles
and other specified uses under our Fleet Debt facilities, our like-kind
exchange programs and to satisfy certain of our self insurance regulatory
reserve requirements. Corporate restricted cash is calculated as total
restricted cash less restricted cash associated with fleet debt.

16. Net Fleet Debt

Net fleet debt is calculated as total fleet debt less restricted cash
associated with fleet debt. Fleet debt consists of our U.S. ABS Fleet
Debt, the Fleet Financing Facility, obligations incurred under our
International Fleet Debt Facilities, Capital Leases relating to revenue
earning equipment that are outside the International Fleet Debt
Facilities, the International ABS Fleet Financing Facility, the Belgian
Fleet Financing Facility, the Brazilian Fleet Financing Facility, the
Canadian Fleet Financing Facility and the pre-Acquisition ABS Notes. This
measure is important to management, investors and ratings agencies as it
helps measure our leverage.

17. Restricted Cash Associated with Fleet Debt (used in the calculation of
Net Fleet Debt and Corporate Restricted Cash)

Restricted cash associated with fleet debt is restricted for the purchase
of revenue earning vehicles and other specified uses under our Fleet Debt
facilities and our car rental like-kind exchange program.

18. Total Net Debt

Total net debt is calculated as net corporate debt plus net fleet debt.
This measure is important to management, investors and ratings agencies as
it helps measure our leverage.

19. Total Net Cash Flow

Total net cash flow is calculated as the change in the debt balances less
the change in cash and equivalents and restricted cash, adjusted for the
effects of foreign currency. Total net cash flow is important to
management, investors and rating agencies as it represents funds available
to grow our fleet or reduce our debt.

20. Total Net Cash Flow Yield

Total net cash flow yield is calculated as total net cash flow divided by
the pro forma diluted number of shares outstanding during the period
(407.7 million in 2009 and 325.5 million in 2008) as a percentage of the
average stock price for the period ($6.43 for the twelve months ended
September 30, 2009 and $13.35 for the twelve months ended September 30,
2008). Total net cash flow yield is important to management, investors
and ratings agencies as it represents the relative movements between
total net cash flow and our stock price.

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