New York, NY / Boca Raton, FL, August 12, 2002 - Cendant Corporation (NYSE:CD) today announced that it has acquired Lodging.com. Lodging.com is a leading and growing online hotel reservation travel site, generating approximately 115,000 hotel reservations per month predominantly through its network of web sites as well as through its call center at 888-LODGING. The transaction is expected to be accretive to earnings but not material to Cendant. The consideration paid was in the form of cash.

Providing its growing customer base with access to both discounted and regularly published lodging rates, Lodging.com spans more than 500 markets, primarily concentrated in North America and the Caribbean. Lodging.com offers unpublished, discounted rates at approximately 3,000 hotels. Through its affiliate program, Lodging.com has partnered with over 2,500 travel-related Internet sites. Lodging.com will further broaden Cendant's marketing of discounted hotel rooms to consumers and travel agencies as it is integrated into Cendant's Travel Distribution Division.

"This acquisition fits perfectly into Cendant's Travel Distribution strategy as it gives us immediate access to additional discounted lodging merchant inventory, great technology and long-term lodging partnerships while providing a platform on which to grow," said Samuel L. Katz, chairman and CEO of Cendant's Travel Distribution Division. "We expect Lodging.com to increase annual bookings across all travel brands, provide discounted deals for customers that can be cross-marketed through other Cendant businesses and affiliates, expand our agencies' and Galileo's non-air distribution, and deliver more attractive offerings to the desktops of Galileo travel agencies."

It is expected that Lodging.com will add Cendant's global vacation rental, timeshare and RCI Holiday Network inventory as well as continue to add other hotel partner inventory into its rapidly growing portfolio of well-known lodging brands. Lodging.com will also become the preferred hotel distribution partner of Trip Network, Inc., an independent Cendant affiliate, providing even greater lodging discounts to Trip.com and Cheaptickets.com customers. It is further expected that Galileo travel agencies and their customers will gain access to Lodging.com's discounted lodging inventory.

"Adding Lodging.com to Cendant's growing list of hotel distribution and services businesses is yet another great value-add service to our lodging suppliers, who receive the benefit of a new effective and flexible distribution channel," said Sam E. Galeotos, president and CEO of Galileo International, who assumed this post and operational oversight of all Cendant's Travel Distribution businesses last week. "We are excited to incorporate the expertise and entrepreneurial spirit of Lodging.com's management team as an integral part of our distribution business."

"We are excited to become part of Cendant and its innovative and growing Travel Distribution Division," said Carl Marbach, president of Lodging.com. "We've been diligent in establishing a successful business model by providing flexible, consistent and quality services for our customers and suppliers that we expect will only improve with the power and experience of Cendant."

About Lodging.com
Founded in 1995 and based in Boca Raton, Florida, Lodging.com is one of the leading online travel sites with a focus on hotel reservations. Lodging.com is a one-stop site for travelers, providing extensive information to help travelers select the most suitable accommodations - at the best possible rates. Guests can check hotels and rates online, as well as book immediately - either through the site or a call center. The Company provides all original content on the site, including travel tips, destination write-ups, and city guides. Today, Lodging.com offers proprietary discounted rates throughout the U.S., Canada, the Caribbean, and many major international destinations, and reservation capabilities at properties worldwide through traditional supplier channels. Lodging.com books approximately 115,000 reservations per month.

About Cendant Corporation
Cendant Corporation is primarily a provider of travel and residential real estate services. With approximately 70,000 employees, New York City-based Cendant provides these services to business and consumers in over 100 countries. More information about Cendant, its companies, brands and current SEC filings may be obtained by visiting the Company's Web site at http://www.cendant.com or by calling 877-4-INFOCD (877-446-3623).

About Cendant's Travel Distribution Division
Cendant's Travel Distribution Division is Cendant's newest division, formed in October 2001, following the Company's acquisitions of Galileo International, a leading global distribution system, and Cheap Tickets, Inc. With more than 5,200 employees in more than 100 countries, the division includes: Galileo, a leading global distribution system serving more than 45,000 travel agencies and over 51,000 hotels; hotel distribution and services businesses, including Wizcom, THOR, and Trust International; Cendant Travel Services, a top-ranked travel agency which operates eight contact centers for Cendant-affiliated brands; and an affiliation with Trip Network, Inc., which operates Trip.com and Cheaptickets.com, two leading consumer leisure travel Web sites.

This press release contains "forward-looking statements" within the meaning of federal securities law, including statements concerning business strategies and their intended results and similar statements concerning anticipated future events and expectations that are not historical facts. The forward-looking statements in this press release are subject to numerous risks and uncertainties, including the effects of economic conditions, supply and demand changes for hotel rooms, competitive conditions in the lodging industry, relationships with clients and property owners, the impact of government regulations, and the availability of capital to finance growth, which could cause actual results to differ materially from those expressed in or implied by the statements herein.

Media Contact:
Elliot Bloom
212-413-1832

Investor Contacts:
Sam Levenson
212-413-1834

Henry A. Diamond
212-413-1920