Avis Budget Group to Acquire Zipcar for $12.25 Per Share in Cash

Avis Budget Group to Acquire Zipcar for $12.25 Per Share in Cash

  *Combined company will be the global leader in car sharing and mobility
    solutions.
  *Combination expected to produce $50-70 million in annual synergies.
  *Transaction targeted to close in spring 2013.
  *Avis Budget re-affirms its prior estimates of full-year 2012 results.

PARSIPPANY, N.J. and CAMBRIDGE, Mass., Jan. 2, 2013 (GLOBE NEWSWIRE) -- Avis
Budget Group, Inc. (Nasdaq:CAR) and Zipcar, Inc. (Nasdaq:ZIP), the world's
leading car sharing network, today announced that Avis Budget Group has agreed
to acquire Zipcar for $12.25 per share in cash, a 49% premium over the closing
price on December 31, 2012, representing a total transaction value of
approximately $500 million. The transaction is subject to approval by Zipcar
shareholders and other customary closing conditions, and is expected to be
completed in the spring of 2013.The Boards of Directors of both companies
unanimously approved the transaction, and Zipcar shareholders representing
approximately 32% of the outstanding common stock have agreed to vote their
shares in support of the transaction.

Car sharing has grown to be a nearly $400 million business in the United
States and is expanding rapidly in major cities around the world.Zipcar has
led this industry, leading in innovation and world-class service.Zipcar now
has more than 760,000 members, known as Zipsters, with a market-leading
presence in 20 major metropolitan areas in the United States, Canada and
Europe, and fleet positioned at over 300 college and university
campuses.Zipcar has combined leading-edge technology, an outstanding customer
experience, and clear brand messaging to develop strong loyalty and advocacy
among its customers.

"By combining with Zipcar, we will significantly increase our growth
potential, both in the United States and internationally, and will position
our Company to better serve a greater variety of consumer and commercial
transportation needs," said Ronald L. Nelson, Avis Budget Group chairman and
chief executive officer."We see car sharing as highly complementary to
traditional car rental, with rapid growth potential and representing a
scalable opportunity for us as a combined company.We expect to apply Avis
Budget's experience and efficiencies of fleet management with Zipcar's proven,
customer-friendly technology to accelerate the growth of the Zipcar brand and
to provide more options for Zipsters in more places.We also expect to
leverage Zipcar's technology to expand mobility solutions under the Avis and
Budget brands."

Avis Budget expects to generate $50 to $70 million in annual synergies as a
result of the transaction.In particular, Avis Budget expects significant cost
reductions across the fleet life cycle (from procurement to operations and
maintenance to disposition, as well as financing), in addition to savings from
eliminating Zipcar's public-company costs.Avis Budget also plans to achieve
substantial cost savings by increasing fleet utilization across the two
companies.Significant revenue growth opportunities exist, including by
leveraging Avis Budget's fleet to meet more of Zipsters' weekend demand, which
is currently constrained by fleet availability.

These synergies, combined with the expected growth and rising profitability of
Zipcar, are expected to make the transaction accretive to Avis Budget's
earnings per share in the second year following the acquisition, excluding
certain items and purchase-accounting effects.

"We are delighted to announce our intention to join the Avis Budget Group
family of companies, and we believe this combination is a win across the board
for our members, shareholders and employees. We will be well positioned to
accelerate enhancements to the Zipcar member experience with more offers and
additional services as well as an expanded network of locations," said Scott
Griffith, chairman and chief executive officer of Zipcar."As the leading
global provider of car sharing services, with a brand that is synonymous with
the category, we remain committed to the values and vision that have driven us
forward for many years, grounded by our passion for delivering a superior
experience to every member for every trip, every day. By combining Zipcar's
expertise in on-demand mobility with Avis Budget Group's expertise in global
fleet operations and vast global network, we will be able to accelerate the
revolution we began in personal mobility."

"Avis Budget's existing infrastructure, scale and experience with managing
multiple brands make us uniquely positioned to accelerate the growth and
profitability of Zipcar," Mr. Nelson added."At the same time, we are
committed to retaining the elements of the Zipcar brand and culture that have
allowed Zipcar to achieve such rapid growth and success over the last twelve
years."

Following the acquisition, Zipcar will operate as a subsidiary of Avis Budget
Group and will continue with its planned move to new headquarters in Boston,
Massachusetts.Avis Budget anticipates that key members of the Zipcar
management team, including Mr. Griffith and Mark Norman, president and chief
operating officer, will continue to set the overall direction and run
day-to-day operations of Zipcar.

Avis Budget Group expects to fund the purchase price primarily with
incremental corporate debt borrowings, as well as available cash.As of
September 30, 2012, Avis Budget Group had cash and marketable securities of
approximately $554 million, and Zipcar had cash and marketable securities of
approximately $82 million, or approximately $2 per Zipcar share.

Citigroup is acting as financial advisor, and Kirkland & Ellis LLP is acting
as legal counsel, to Avis Budget Group.Morgan Stanley is acting as financial
advisor, and Latham & Watkins LLP is acting as legal counsel, to Zipcar.

Separately, Avis Budget Group today reiterated its previous estimates of its
full-year 2012 results.Avis Budget continues to expect that its full-year
2012 revenue will be approximately $7.3 billion, a 24% increase compared to
2011, and that its 2012 Adjusted EBITDA will be approximately $825 million to
$840 million, excluding certain items, an increase of 35% to 38% compared to
the prior year.Avis Budget also continues to expect that its 2012 pretax
income will be $450 million to $465 million and that its diluted earnings per
share will be approximately $2.35 to $2.45, excluding certain items.

Investor Conference Call

Avis Budget Group and Zipcar will host a conference call to discuss the
transaction on January 2, 2013, at 9:00 a.m. (ET).Investors may access the
call live at ir.avisbudgetgroup.com or ir.zipcar.com or by dialing
415-228-4734 and providing the access code "Avis Budget."Investors are
encouraged to dial in approximately 10 minutes prior to the call.A web replay
will be available at ir.avisbudgetgroup.com and at ir.zipcar.com following the
call.A telephone replay will be available from 12:00 noon (ET) on January 2
until 8:00 p.m. (ET) on January 16 at 203-369-1604, access code: "Avis
Budget."

About Avis Budget Group, Inc.

Avis Budget Group, Inc. is a leading global provider of vehicle rental
services through its Avis and Budget brands, with 10,000 rental locations in
approximately 175 countries around the world. Avis Budget Group operates most
of its car rental offices in North America, Europe and Australia directly, and
operates primarily through licensees in other parts of the world. Avis Budget
Group has approximately 29,000 employees and is headquartered in Parsippany,
N.J. More information is available at www.avisbudgetgroup.com.

The Avis Budget Group, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8891

About Zipcar, Inc.

Zipcar is the world's leading car sharing network, with more than 760,000
members and over 10,000 vehicles in urban areas and college campuses
throughout the United States, Canada, the United Kingdom, Spain and
Austria.Zipcar offers more than 30 makes and models of self-service vehicles
by the hour or day to residents and businesses looking for an alternative to
the high costs and hassles of owning a car.More information is available at
www.zipcar.com.

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995.Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Avis Budget Group or Zipcar to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements.Statements preceded by, followed
by or that otherwise include the words "believes", "expects", "anticipates",
"intends", "projects", "estimates", "plans", "may increase", "forecast" and
similar expressions or future or conditional verbs such as "will", "should",
"would", "may" and "could" are based upon then current assumptions and
expectations and are generally forward-looking in nature and not historical
facts.Any statements that refer to outlook, expectations or other
characterizations of future events, circumstances or results, including all
statements related to future results, future fleet costs, acquisition
synergies and cost-saving initiatives are also forward-looking statements.

There can be no assurance that the proposed acquisition of Zipcar will occur
as currently contemplated, or at all, or that the expected benefits from the
transaction will be realized on the timetable currently contemplated, or at
all.Additional risks and uncertainties relating to the proposed acquisition
of Zipcar include, but are not limited to, uncertainties as to the
satisfaction of closing conditions to the acquisition, including timing and
receipt of regulatory approvals, timing and receipt of approval by the
shareholders of Zipcar, the respective parties' performance of their
obligations under the merger agreement relating to the acquisition, the status
of capital markets, including availability and cost of capital, and other
factors affecting the execution of the transaction.

Other risks that could cause future results to differ from those expressed by
the forward-looking statements included in this press release include, but are
not limited to, Avis Budget's ability to promptly and effectively integrate
the businesses of Avis Europe and Avis Budget, Avis Budget's ability to
promptly and effectively integrate the businesses of Zipcar and Avis Budget
(if and when the acquisition of Zipcar is completed), any change in economic
conditions generally, particularly during Avis Budget's or Zipcar's peak
season or in key market segments, the high level of competition in the vehicle
rental industry, a change in fleet costs as a result of a change in the cost
for new vehicles and/or the value of used vehicles, disruption in the supply
of new vehicles, disposition of vehicles not covered by manufacturer
repurchase programs, the financial condition of the manufacturers that supply
Avis Budget's and Zipcar's rental vehicles which could impact their ability to
perform their obligations under repurchase and/or guaranteed depreciation
arrangements, any reduction in travel demand, including any reduction in
airline passenger traffic, any occurrence or threat of terrorism, a
significant increase in interest rates or borrowing costs, Avis Budget's and
Zipcar's ability to obtain financing for their operations, including the
funding of their vehicle fleets via the asset-backed securities market, any
changes to the cost or supply of fuel, any fluctuations related to the
mark-to-market of derivatives which hedge exposure to exchange rates, interest
rates and fuel costs, Avis Budget's and Zipcar's ability to meet the financial
and other covenants contained in the agreements governing their indebtedness,
risks associated with litigation, regulation or governmental or regulatory
inquiries or investigations involving Avis Budget or Zipcar, and Avis Budget's
and Zipcar's ability to accurately estimate their future results and implement
their strategies for cost savings and growth.

A further list and description of important assumptions and other important
factors that could cause actual results to differ materially from those in the
forward-looking statements are specified in Avis Budget's Annual Report on
Form 10-K for the year ended December 31, 2011 and Zipcar's Annual Report on
Form 10-K for the year ended December 31, 2011, included under headings such
as "Forward-Looking Statements", "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations", Avis Budget's
and Zipcar's most recently filed Form 10-Q, and in other filings and
furnishings made by Avis Budget and Zipcar with the SEC from time to
time.Other unknown or unpredictable factors could also have material adverse
effects on Avis Budget's or Zipcar's performance or achievements.In light of
these risks, uncertainties, assumptions and factors, the forward-looking
events discussed in this press release may not occur.You are cautioned not to
place undue reliance on these forward-looking statements, which speak only as
of the date stated, or if no date is stated, as of the date of this press
release.Avis Budget and Zipcar undertake no obligation to release publicly
any revisions to any forward-looking statements, to report events or to report
the occurrence of unanticipated events unless required by law.

Non-GAAP Measures

This press release includes certain financial measures such as Adjusted
EBITDA, pretax income and diluted earnings per share, which exclude certain
items under each measure and are not considered generally accepted accounting
principles ("GAAP") measures as defined under SEC rules.For Avis Budget,
Adjusted EBITDA represents income (loss) before non-vehicle related
depreciation and amortization, any impairment charge, transaction-related
costs, non-vehicle related interest and income taxes. Adjusted EBITDA
excluding certain items represents Adjusted EBTIDA excluding
restructuring-related expenses, costs related to early extinguishment of debt
and other certain items as such items are not representative of the results of
operations of our business.Avis Budget believes that these non-GAAP measures
are useful in measuring the comparable results of Avis Budget
period-over-period.The GAAP measures most directly comparable to Adjusted
EBITDA, pretax income and diluted earnings per share, excluding certain items
under each measure, are net income, pretax income and diluted earnings per
share.Because of the forward-looking nature of Avis Budget's forecasted
non-GAAP Adjusted EBITDA, pretax income and diluted earnings per share,
excluding certain items, specific quantifications of the amounts that would be
required to reconcile forecasted net income, pretax income and diluted
earnings per share are not available.Avis Budget believes that there is a
degree of volatility with respect to certain of Avis Budget's GAAP measures
which preclude it from providing accurate forecasted GAAP to non-GAAP
reconciliations.Based on the above, Avis Budget believes that providing
estimates of the amounts that would be required to reconcile the range of the
non-GAAP Adjusted EBITDA, pretax income and diluted earnings per share,
excluding certain items, to forecasted net income, pretax income, and diluted
earnings per share would imply a degree of precision that would be confusing
or misleading to investors for the reasons identified above.

Additional Information

In connection with the meeting of Zipcar shareholders to be held with respect
to the proposed merger, Zipcar will file a proxy statement with the Securities
and Exchange Commission.INVESTORS AND SECURITYHOLDERS ARE ADVISED TO READ THE
PROXY STATEMENT WHEN IT BECOMES AVAILABLE BEFORE MAKING ANY VOTING OR
INVESTMENT DECISION WITH RESPECT TO THE PROPOSED MERGER BECAUSE IT WILL
CONTAIN IMPORTANT INFORMATION.Investors and security holders will be able to
obtain a free copy of the proxy statement (when available) and other relevant
documents filed by Zipcar with the SEC from the SEC's website at
http://www.sec.gov and from Zipcar by directing a request to Zipcar, Inc., 25
First Street, 4th Floor, Cambridge, MA 02141, Attention:Investor Relations.

Zipcar and its directors, executive officers and certain other employees may
be deemed to be participants in the solicitation of proxies of Zipcar
shareholders in connection with the proposed merger.Investors and security
holders may obtain more detailed information regarding the names, affiliations
and interests of Zipcar directors and executive officers by reading Zipcar's
proxy statement for its 2012 annual meeting of shareholders, which was filed
with the SEC on April 12, 2012.Additional information regarding potential
participants in such proxy solicitation and a description of their direct and
indirect interests, by security holdings or otherwise, will be included in the
proxy statement and other relevant materials filed by Zipcar with the SEC in
connection with the proposed merger when they become available.

CONTACT: Avis Budget Group Media Contact:
         John Barrows
         973-496-7865
         PR@avisbudget.com
        
         Avis Budget Group Investor Contact:
         Neal Goldner
         973-496-5086
         IR@avisbudget.com
        
         Zipcar Media Contact:
         Karen Drake
         617-336-4323
         PR@zipcar.com
        
         Zipcar Investor Contacts:
         Jamie Moser / Nick Lamplough
         Joele Frank, Wilkinson Brimmer Katcher
         212-355-4449
         jmoser@joelefrank.com
         nlamplough@joelefrank.com
        
         Jonathan Schaffer
         The Blueshirt Group
         212-871-3953
         IR@zipcar.com

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