2nd May 2007 Avis Europe plc ("Avis" or the "Group") announces that it has agreed to sell and franchise its business in Greece to Piraeus Bank ("Piraeus" or the "Acquirer"), a leading banking group in Greece. The transaction provides for the disposal of the business and the granting of an exclusive 12-year licence to Piraeus to operate the Avis brand in Greece, in return for which the Group will receive royalties on an ongoing basis. The disposal consideration is ¤25.5 million in cash and approximately ¤190 million of debt will be transferred with the business. The transaction is conditional upon clearance by the competition authorities in Greece and is expected to be completed in the next two to three months. The transaction arises from a network review undertaken by the Group. Unlike the majority of the Group, the business in Greece contains a larger element of long term rental and is therefore considered non-core. Whilst the Directors estimate the sale will be earnings dilutive in the short term, the transaction supports the Group's overall strategy to improve both margins and ROCE in the medium term. In the financial year ending 31 December 2006, Avis Greece had sales of ¤81.3 million and made a pre-tax profit of ¤5.4 million. As at 31 December 2006, gross assets amounted to ¤236.2 million. The disposal will give rise to a pre-tax exceptional loss of around ¤5 million. The proceeds of the disposal will be used initially to reduce Group debt and subsequently will be re-deployed to fund growth in key markets. Commenting on the disposal, Murray Hennessy, Chief Executive of Avis, said: "We're pleased to establish a relationship with a very strong new licensee partner, maintaining network coverage, especially for the inbound short term rental leisure business. The proceeds will enable us progressively to re-deploy capital from a non-core operation into targeted areas of our business." Michael Colakides, Vice Chairman Piraeus Bank, commented: "The acquisition of the Avis operations in Greece will strengthen our Group's position in the growing long term car rental market and will benefit our corporate and SME banking business relationships. This acquisition creates economies of scale and synergies with Piraeus Best Leasing, a subsidiary in the long term car rental industry, thus enhancing its profitability." Enquiries: Avis Europe plc 01344 426644 Murray Hennessy Martyn Smith Brunswick Susan Gilchrist 020 7404 5959 Chris Blundell Notes: Piraeus Bank is the parent company of Piraeus Bank Group (¤30 billion assets), one of the most active and dynamic financial organisations in Greece. The PBG specialises in retail banking, small and medium sized enterprises, capital markets and investment banking, financing of the corporate and shipping sector. It has a network of over 300 outlets throughout Greece and is therefore well placed financially, geographically and strategically to expand and develop Avis' operations through this licensed partnership.