Welcome to the Hertz Global Holdings 2009 first quarter conference call. The company has asked me to remind you that certain statements made on this call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance and by their nature are subject to inherent uncertainties. Actual results may differ materially. Any forward-looking information relayed on this call speaks only as of this date and the company undertakes no obligation to update that information to reflect changed circumstances. Additional information concerning these statements is contained in the company's press release regarding its first quarter results issued yesterday and in the risk factors in forward-looking statements section of the company's 2008 Form 10-K. Copies of these filings are available from the SEC, the Hertz website or the company's investor relations department. I would like to remind you that today's call is being recorded by the company and is also being made available for replay starting today at 12:30 pm ET and running through May 15, 2009. I would now like to turn the call over to our host, Leslie Hunziker. Please go ahead.

Good morning and welcome to Hertz Global Holdings 2009 first quarter conference call. You should all have our press release and associated financial information which was distributed last night. We've also provided slides to accompany our conference call which can be accessed on our website at www.hertz.com\investorrelations. In a minute I'll turn call over to Mark Frissora, Hertz's Chairman and CEO. Also speaking today is Elyse Douglas, our Chief Financial Officer. In addition we have Joe Nothwang, Executive Vice President and President of Vehicle Rental and Leasing, The Americas and Pacific, Michel Taride, Executive Vice President and President Hertz Europe Limited and Gerry Plescia, Executive Vice President and President of HERC. They're here today to help answer any questions you may have. Today we'll use certain non-GAAP financial measures all of which are reconciled with GAAP numbers in our press release and at the back of the slide presentation, both of which are posted on our website. We believe that our profitability and performance is better demonstrated using these non-GAAP metrics. Our call today focuses on Hertz Global Holdings Inc., a publicly traded company. Results for the Hertz Corporation differ only slightly as explained in our press release. Now I'll go ahead and turn it over to Mark Frissora.

Let's get started on slide number five. In our last call I told you that in this economy our focus would be on improving profit retention and increasing cash flow. I'm pleased to report that in the first quarter we delivered on those objectives in spite of a difficult operating environment, and we remain committed to operating the company on this basis going forward. Before I get into the specifics of our performance, let me give you some color on what we're seeing in the economy and in our own industry. If you turn to slide six, according to economic and industry reports, consumer confidence and spending held steady during the first quarter, but continued to suppress global travel demand. Our U.S. rental car operating performance reflects this stabilization. When you adjust out the impact from Easter shifting to the second quarter and the leap year effect, the pace of decline in this segment has leveled off since year end. Getting especially hard hit however is the on-airport business travel segment. Buy-in from contracted accounts is falling much faster than leisure travel as corporations are keeping tight controls on expenses. According to data from GDS, Global Distribution Systems, for the first quarter year-over-year business travel reservations declined 20% for the industry while leisure travel was off 14%. Business accounts make up roughly 45% of our total U.S. rental car sales. Moreover discounted rentals from third party online travel sites made up more of the mix year-over-year. On the leisure side of the business we led an industry-wide price increase in the U.S. in the first quarter after right-sizing our own fleets and seeing indications that competitors were following suit. While macro environment has changed very little, we've made huge strides in the first quarter toward our goals to drive fleet…

Let me start by summarizing the consolidated results for the quarter. We generated total revenue of $1.6 billion in the first quarter, 23% lower year-over-year but only 15% lower after adjusting for foreign exchange and the calendar effect of Easter and leap year. On slide 14 you can see that the decline reflects the impact of reduced demand in both the car and equipment rental businesses. Pricing also negatively affected revenues with equipment rental pricing under competitive pressure and the car rental revenue per day decline, driven largely by mix. The good news is the pace of decline in demand has leveled off since the fourth quarter. Adjusted pre-tax was a loss of $116.6 million in the first quarter compared with the profit of $17.1 million in the same period last year. Consolidated corporate EBITDA was $91.9 million in the first quarter as compared to $235 million in the prior year. Profits were negatively impacted by the decline in volume and priced across all businesses. In addition we experienced higher costs associated with further fleet reductions in HERC and higher year-over-year car costs in Rent-a-car. Adjusted direct operating costs in the quarter were down 20% and adjusted SG&A expenses were 16% lower due to lower rental volume and the achievement of $125 million in cost savings in the quarter. This lessened the impact of negative revenue trends on profits, resulting in higher profit retention of 72% improved from the fourth quarter level of 27%. We've also taken significant actions over the past few months to assure further improvement in profit retention trends going forward, including company-wide wage and benefit reductions, closing unprofitable locations in both rental car and equipment rental and reducing headcount by de-layering in U.S. Rent-a-car, restructuring our international Rent-a-car operations and realigning the equipment rental regional structure.…

Thanks, Elyse. In the second quarter the headwinds of the ongoing economic crisis continued to impact the global car rental market. Industry prospects are volatile and visibility is limited as consumers are being very cautious about advanced booking. Pricing on corporate accounts is still competitive and it's hard to predict with any confidence how the summer travel season will really play out. Yet while the uncertainly remains we can see some upside as we look ahead. With both rental car and equipment volume stabilizing sequentially we could be nearing a bottom. On the Rent-a-car side residual values have improved to near normal levels; still lower year-over-year but in the range of normalcy. Rental car pricing continues to improve, especially in the leisure market, and we believe the year-over-year decline in corporate pricing will moderate as comps become easier in the second half. Additionally, cost actions deliver increasing profit retention and therefore we believe our operating performance will improve even without an economic recovery. On the equipment rental side, in April we've seen a slight improvement from March's depressed volume levels and we're hopeful that this will continue although pricing pressure hasn't dissipated. Additionally, our strategic investments and business growth are generating encouraging results and our three recent acquisitions should begin providing some incremental benefits as the year progresses. The Hertz employees are very excited about these acquisitions for which we paid less than $60 million in total for what we believe offer multiples more in value. We penetrated the value price leisure segment with the purchase of Advantage Rent-A-Car gaining a significant market share in nearly all the top leisure destinations. In addition to the 20 primary locations and the strong brand the growth potential for this business is enormous. We'll look to expand into additional airport locations and leisure…

(Operator Instructions). Your first question comes from Emily Shanks – Barclays Capital. Emily Shanks – Barclays Capital: Nice job in a tough environment. I had a couple of follow-up questions. As we look at what the year-over-year decline in EBITDA is can you give us a sense of how much was attributable simply to the year over year decline in the used car market?

–: Emily Shanks – Barclays Capital: Okay.

We'll try to calculate some rough directions here for you or follow up with another call. Emily Shanks – Barclays Capital: Okay. Okay, that's fine.

–: So, those are just a set of numbers for you that could help calculate back it into it, but obviously in the first quarter the residuals improved a lot. So it was probably 300 to 400 basis points on an age-adjusted fleet basis that had the impact on profitability. It's significant enough, I mean depreciation per car I believe in the first quarter, the number was up how much, Elyse?

Depreciation per car in the U.S. was, hang on.

How much was it up? Does anyone know? Net depreciation per car in the first quarter was up approximately how much, because that's where the residual value calculates, 2.6%. So, 2.6% on the value of the fleet, most of that was due to the residual value issue.

I have another data point here. We did take car losses in the first quarter of last year, so actually on car sales, on just the car rental business actually down year-over-year, $30 million in prior year, $15 million this year. Emily Shanks – Barclays Capital: And then if I could, around the open market repurchases that you executed on the high yield notes, can you give us a breakout of what the repurchases were between senior and sub notes?

About 55% was the senior subs, about a third was the senior notes and the balance was the euro notes. And the average price was about $67. Emily Shanks – Barclays Capital: And do you plan on further reducing corporate debt as we look out through the rest of this year?

Obviously we're going to continue to evaluate and then based on our cash flow and liquidity needs, we'll consider doing more. But right now we have no plans. Emily Shanks – Barclays Capital: And then if I could, just one last one around the actual fleet debt that is coming due in 2010. I was having a little bit difficulty reconciling some of the numbers that were on slides 20 through 22. I just want to make sure, maybe just to jump to slide 22 for 2010 that $5 billion number that you have up there, is that your corporate plus fleet plus like the conduit? I was just trying to reconcile that with what's on slide 21. It shows $4.3 billion.

Let me start with slide 21, Emily, slide 21 really reflects our outstandings as of this March 2009. Obviously our fleet is seasonal and will have higher outstandings in the second and third quarter. So the $5 billion really just kind of reflects what we anticipate the number to be in terms of the total refinancing needs to basically compensate for that seasonality. Emily Shanks – Barclays Capital: And then around the $1.75 billion that's extending maturities, is that you guys simply going to your ABS holders and asking them roll into a longer piece of paper?

There's actually a number of facilities that we could approach. They're basically the revolving fleet financing facilities where we have a limited number of investors.

So it's amending and extending those, that's right.

There's some in Europe, there's some VSNs under the U.S. It's a number of different facilities that would make that up. Emily Shanks – Barclays Capital: And then the $1.2 billion that's TALF. Would that be $1.2 billion that you would fund all in the AAA rated collateral pools or is that $1.2 billion a portion you'd fund with that and then maybe have somebody else take down the subordinated piece or the mezzanine piece of that?

The latter. Emily Shanks – Barclays Capital: The latter. And then just a final one, the billion bucket of other, I apologize, I missed what the description was on that.

Well that's going to be a number of different things, basically it's going to be a combination of, it could be [ABL] facilities, we could be upsizing some of the existing facilities. It's really a guess. It could be further issuance at TALF, it could be a number of different things. Emily Shanks – Barclays Capital: And actually I'm sorry I said that was my last one, this is really my final one, but on that TALF one have you already started investigating potential interest for that sub piece?

What we're really doing right now, Emily, is that we're more focused on working with the rating agencies to really understand what the credit enhancement and rating requirement would be.

(Operator Instructions) Your next question comes from Christina Woo – Soleil Securities. Christina Woo – Soleil Securities – Streetscape Research: I was wondering the $125 million of first quarter savings, that was a great result and I wanted to just clarify whether that included the $38 million of restructuring or excluded that restructuring charge?

It excludes the restructuring charge. Christina Woo – Soleil Securities – Streetscape Research: Do you have any expectation for how much restructuring we should expect through the rest of 2009?

It will moderate. We will have some restructuring but it will be less than we had in the first quarter certainly. Christina Woo – Soleil Securities – Streetscape Research: I also wanted to ask about the level of enhancement requirement on the purchase of new vehicles. I have heard that some of the enhancement level which had previously been at the 20% to 30% level are up to nearly double that. And I'm wondering if you're seeing that magnitude of change?

What we're looking at now is – you're correct, Christina that historically it was 27%. When we did our deal in September, it was 37% and we're looking kind of in the ballpark of 55% to 60% today based on the current market. That's for AAA which is required for TALF. Christina Woo – Soleil Securities – Streetscape Research: And then just shifting gears to the HERC side of the business. It sounds like your de-fleeting and changing maybe the mix of your HERC fleet. Are you finding that your competitors aren't just de-fleeting and that's what's causing some of the pricing irrationality?

We believe that part of the pricing irrationality is the fact that people haven't de-fleeted as aggressively as we did in the first quarter. I mean obviously we doubled our de-fleeting needs. And we think when our competitors announce that it will be clear that we probably sold more fleet than they did in the first quarter in order to try to right-size the business. But it's really a couple of competitors were completely irrational during the quarter. And why they were, part of it may be chasing volume. We obviously think it's the wrong answer because it just creates an obvious lower market for everyone because no one wants to give up any share of volume. So we think that's a bad tactic for any of our competitors to use. Gerry, do you want to add something to that?

We sold more fleet also in the third and fourth quarter versus our competitors as we've discussed. I think we're seeing our competitors sell more fleet now as the demand continues to deteriorate. But that pace of demand is causing the imbalance of the fleet level in the industry to the demand level. So that is exacerbating the problem. Christina Woo – Soleil Securities – Streetscape Research: That was helpful and just one follow-up question to that and then I'll end. Your equipment depreciation levels were a little bit greater in the first quarter than I was anticipating especially with your aggressive de-fleeting efforts. I'm wondering if you could attribute some of that to a mix shift as you're bringing in new equipment at maybe higher costs, or if we should really think about that depreciation level rising as a result of residual values of the equipment coming down?

I think the biggest impact in the quarter on our depreciation was a gain on sale of equipment. It was a $25 million lower profit than prior years. So we had a loss on sale that was lower than last year's small gain by $25 million. That's factored into the depreciation line. And that's the single biggest piece versus any of the mix change you're referring to.

(Operator Instructions) Your next question comes from Brian Johnson – Barclays Capital. Brian Johnson – Barclays Capital: Want to focus a bit on some follow-up questions around the equipment rental business. First, you talk on the last slide about some stabilization. Could you give some color around that? It that in utilization rate pricing, how does that play out geographically and in terms of aerial versus say earth-moving and so forth?

I guess when we look at the volume levels in the first quarter, February and March were tough months, actually probably a higher rate of decline than 26%, probably in the neighborhood of 30% in those months, 30% to 31%. And then what we've seen in April, and what we were talking about during the discussion that we had in the script here, was that the last three weeks we've seen volumes stabilizing around minus 28% which is better than what it was in February and in March. And because of that we feel like there may be some stabilization there. We may be seeing the bottom. Of course it's an extremely volatile market and that minus 28% includes the pricing issue. Pricing hasn't gotten any worse so we don't see it getting worse right now. But it's worse than it was certainly in the fourth quarter and so that's, again, we see a little light at the end of the tunnel in terms of the last three and a half weeks being relatively stable at a rate of decline in the neighborhood of 28%. Gerry, you want to add some color on that?"

No, no Mark as you said, we had an acceleration of that decline throughout the quarter but we're not seeing that in April and so the decline is slowed fairly significantly to closer to flat and then again versus prior year we had a – the decline started around April, May of last year so the comps are a little bit easier. So we're not seeing any incremental growth but the pace of decline is definitely slower and the pricing environment does remain competitive. There's no real improvement on the pricing side at this moment.

No, no Mark as you said, we had an acceleration of that decline throughout the quarter but we're not seeing that in April and so the decline is slowed fairly significantly to closer to flat and then again versus prior year we had a – the decline started around April, May of last year so the comps are a little bit easier. So we're not seeing any incremental growth but the pace of decline is definitely slower and the pricing environment does remain competitive. There's no real improvement on the pricing side at this moment. Brian Johnson – Barclays Capital: Okay. But in terms of sequential volume seasonally adjusted, it sounds flattish March to April?

Yes, correct.

Yes, correct. Brian Johnson – Barclays Capital: Give an easier comp. Second is what is going on on pricing? It's easy obviously on the rental side to break that out, but how on the equipment rental can we get underneath price versus volume in the revenue numbers?

Well, we talked about 2% decline in the fourth quarter, it's dropped to a 4% decline in the first quarter. We saw that sequentially get progressively worse as the months of the quarter went on. This is reflective of what we've stated as some rational/irrational behavior by some competitors. Where there's less selective pricing offered to certain customers as opposed to more broad-based discounting based on the excess supply versus demand. So, the environment is less healthy than it was in the fourth quarter and that's what we're dealing with essentially. We're able to combat that somewhat in that we have long-term relationships with a large national account base and that relationship allows us to look for other cost savings for those customers and be more selective in what we discount and how much we participate. So, that's how Hertz combats it but we are seeing a difficult competitive environment right now. Brian Johnson – Barclays Capital: And in terms of the resale value, we've got Manheim again on the retail side. What indices do you track and how do those look on the equipment side?

There's a company called Rouse that does a pretty good survey of the equipment rental companies and the auctions and at the end of '08 they reported about an 18% decline in year-over-year residuals at the end of December versus the end of December '07. We don't have full numbers out for the first quarter but we've seen the auction prices essentially fairly stable from the end of December through the first quarter but we're selling into February and March auctions. We're pretty similar to the fourth quarter pricing, so we suspect there's some stability there as well. And liquidity's very good; we're able to sell whatever we need to at those auctions, but about 18% year-over-year decline in residuals, net-net.

Your next question comes from Sundar Varadarajan – Deutsche Bank. Sundar Varadarajan – Deutsche Bank: Just a couple of follow-ups, first, on the debt buyback, could you go over what kind of restrictions you may have under your credit facility in terms of how much of senior notes and sub notes you can buy back?

There are restrictions and it's captured under a restricted payments basket, so the dollar amount [Scott], do you remember the calculation on it? It's also limited by our [Scott Sider]: About $400 million

About 400 million is what's available. Sundar Varadarajan – Deutsche Bank: That's 400 million of actual cash that's out the door right? Not fiscal amount?

Are you talking about what's available? Sundar Varadarajan – Deutsche Bank: Yes. How much more could you buyback?

How much more could we do? Sundar Varadarajan – Deutsche Bank: Yes

The basket limit's about $400 million. [Scott Sider]: About 350 more on the high yield notes.

Did you hear that? About $350 more on the high yield notes Sundar Varadarajan – Deutsche Bank: Oh okay, got it. And on the fleet debt side, what's the debt as well as your overall fleet, do you think that you kind of reach the bottom in terms of your total fleet size and correspondingly in terms of fleet debt outstanding, is this kind of the bottom level and as you go into the seasonal strength over the next couple of quarters, we start some re-fleeting?

I would say that – when you say the bottom of the fleet, let's be clear, right? So, on a year-over-year basis on comparisons we'll still be down on fleet. Sundar Varadarajan – Deutsche Bank: No, I'm just talking sequentially from going forward in terms of absolute cars.

The fleet debt will increase in Q2 and Q3.

Exactly. So it will increase the next couple quarters for sure. Sundar Varadarajan – Deutsche Bank: And then as you think about the refinancing requirement next year, based on the information available right now, on a kind of average basis, how do you think the advance rates on that $5 billion that come due next year will defer from what you have right now and also kind of the borrowing cost, how do you see that impacting, in terms of additional borrowing costs next year versus the average borrowing costs that you have on the $5 billion now?

Yes, so I guess, couple things, first of all we're confident that we're going to refinance all the debt coming due next year. And it's not a matter of whether or not we're going to get it done; it's going to be what the cost is right? Which means, and one of the things we think it will be anywhere from $3.5 to $4 billion, so $4 billion at the most, not $5 billion, in that range, 3.5 to 4. The question is also how much it's going to cost us when we refinance. We know it's going to be more than our existing deals, and our liquidity will – basically, much of our liquidity will actually use up the cost to refinance, so right now we estimate the cost roughly at $100 million to $150 million more per year in interest expense, in that range, between $100 and $150 million. But remember, we're anticipating generating $500 million in cost savings this year alone and if things improve, it could cost us a lot less than it would today. That's our estimate today based on all the knowns we have in the door today. Sundar Varadarajan – Deutsche Bank: You talked about the interest cost, but what about the liquidity impact of higher advance rates?

Yes. No, as Mark said, we have $1.7 billion of corporate liquidity today and based on what we're seeing in terms of the market for enhancement level, what we're talking about, the 55 to 60 for a AAA rated level. It would be about $700 million of corporate liquidity would be required to fund that.

Your next question comes from Richard Kwas – Wachovia Capital Markets. Richard Kwas – Wachovia Capital Markets: Mark, on SG&A how should we think about the fixed versus variable component of SG&A? You did a nice job where it was down significantly year-over-year. Going forward, how should we think about that split in terms of numbers?

In general for us, 65% of it's variable and35% of it's fixed in general. That's just rough, but we have a lot more coming out that has not come out yet. In all three operations, we're delayering and whichever operation you want to talk to, we're delayering the organization going forward, so not customer facing positions but just efficiency around how we're layered and also efficiency in back room operations, so every SG&A center is being looked at really hard. We've got solid plans in place through the end of the year. So what you're going to see is SG&A going forward, going down year-over-year and as a percent of sales and as a reduction year-over-year, it should improve through the year, throughout the year. So while it was down 16%, it will be down more than that as we move through the year. Richard Kwas – Wachovia Capital Markets: That's helpful, thanks. And Elyse, on the liquidity on slide 20, I see the note where it says $1.4 billion of borrowing base available at 331, and then $600 million of cash, how does that – so do we assume that it's $2 billion total liquidity under all the borrowing base calculations for the company?

For the corporate liquidity, yes. Richard Kwas – Wachovia Capital Markets: Okay, so that's for the corporate only? Okay, great. And then Mark or Gerry, could you comment on the infrastructure of the stimulus package and how you're positioning the company to try to take advantage of that. I understand most of that probably won't come online until next year at some point, but how are you thinking about that and how are you thinking about the opportunity?

We have information that shows us a listing of projects, dollars, and dollars allocated by state, by MSA within the states and there's quite a substantial number of projects. It's a matter of the timing of kickoff of each of those, so we don't anticipate, and we're not anticipating in our estimates that will have a material impact on the business, but as those projects come to fruition it will start to impact some volume levels. We really think this is going to be well into the back half of the year, third or fourth quarter of this year. So there's enough detail out there, it's exactly when administratively, the monies are, our lead contracts are awarded, and they start infiltrating the business, but we're not anticipating anything in the next four to six months that's material at this point.

We have information that shows us a listing of projects, dollars, and dollars allocated by state, by MSA within the states and there's quite a substantial number of projects. It's a matter of the timing of kickoff of each of those, so we don't anticipate, and we're not anticipating in our estimates that will have a material impact on the business, but as those projects come to fruition it will start to impact some volume levels. We really think this is going to be well into the back half of the year, third or fourth quarter of this year. So there's enough detail out there, it's exactly when administratively, the monies are, our lead contracts are awarded, and they start infiltrating the business, but we're not anticipating anything in the next four to six months that's material at this point.

But we have identified every single opportunity, the number of shovels in the ground, how many do you have? And do you have some statistics around that are impacting us? Gerry?

There's 80,000 or so different specific projects that are listed and you can see those. So we have sales people involved in where those potential projects will start up. So we're prepared. It's a matter of when the kickoffs are. We also have a connection through U.S. Communities. It's an entity that deals with municipalities and state governments were we are a preferred vendor of that entity. And as state municipalities start to kick off local projects we should have some positive impact from that as well. So we're attacking from two different ways but we're not anticipating anything very material until the very end of this year.

There's 80,000 or so different specific projects that are listed and you can see those. So we have sales people involved in where those potential projects will start up. So we're prepared. It's a matter of when the kickoffs are. We also have a connection through U.S. Communities. It's an entity that deals with municipalities and state governments were we are a preferred vendor of that entity. And as state municipalities start to kick off local projects we should have some positive impact from that as well. So we're attacking from two different ways but we're not anticipating anything very material until the very end of this year. Richard Kwas – Wachovia Capital Markets: If you take a longer term view, I mean, is there any broad kind of number we should be thinking about as terms of the dollar opportunity if you look out over the next 24 months?

You know, it's tough to say but we're looking a real rough range of $20 million to $30 million of potential revenues and that's a real rough estimate on those next 18 months or so. Richard Kwas – Wachovia Capital Markets: All right. And then Gerry, last question on HERC, what's the mix of the portfolio right now in terms of assets? How much have you cut the earth moving equipment down to and what's industrial and aerial?

Sure. Right now between aerial and material handling, so it's aerial scissor lift booms and material handling forklifts, that represents combined about 45% of our fleet at the end of the quarter. Aerial 27%, material handling 18%, so its 45% in those two categories, that's more dedicated towards industrial though there's construction application there. And earth moving is down to 23.5% at the end of the first quarter. So that's substantial reduction over prior year. So we continue to reduce that earth moving mix against the aerial industrial application. Richard Kwas – Wachovia Capital Markets: And does that have room to go lower, the 23.5?

A little bit lower. I think we're getting close to the right number, 20% to 21% but there's room. As the demand levels are still not great from a commercial construction side, we'll continue to sell in those categories and don't have plans to buy much fleet in that area. So it will trickle down a little bit from here.

Your next question comes from Jordan Hymowitz – Philadelphia Financial Jordan Hymowitz – Philadelphia Financial: Two things. On page 24 where you calculate the leverage and interest coverage ratio, I assume these are done on a trailing 4 quarters basis?

Yes, that's correct. Jordan Hymowitz – Philadelphia Financial: Okay. And can we just say what numbers we're using for the numerator and the denominator for both ratios?

Sure, give me one second. For March for the leverage covenant, the EBITDA is 943, $943 million and the consolidated indebtedness is $3.873 billion. Jordan Hymowitz – Philadelphia Financial: Okay. And for the interest coverage?

The interest coverage, obviously the EBITDAs the same. Interest is 357. Jordan Hymowitz – Philadelphia Financial: Okay. Next question. Is the impact of GM and Ford, you said it was detailed the effects of it where? I'm sorry.

In our 10-K. Jordan Hymowitz – Philadelphia Financial: And this 5% sensitivity for $50 million, is that for a full year?

Yes. That assumes that given the GM cars in the fleet today, if the residuals fell by 5% it would be $50 million. That would be recognized over the remaining life of the car. Jordan Hymowitz – Philadelphia Financial: So that's, well I guess because it's a ten month average fleet it's probably all one year anyway.

Right. Jordan Hymowitz – Philadelphia Financial: Okay. And I think that's it. Thank you very much and appreciate. Oh, one more question, I apologize. Is your – can you give a status on your pension funding at this point?

Yes. We have an underfunded pension today. And we anticipate that we will make some pension contributions this year in the range of about $40 million. Jordan Hymowitz – Philadelphia Financial: $40 million. And what's the net underfunded at this point?

It's about $200 million. Jordan Hymowitz – Philadelphia Financial: And is that calculated into the assumptions at this point on capital needs?

Yes it is. Jordan Hymowitz – Philadelphia Financial: Thank you very much.

Your next question comes from Jonathan Chen – Private Management Group. Jonathan Chen – Private Management Group: Good morning. I was wondering if you guys could talk a little bit about the spot market as far as pricing demand availability on both the rental car and the equipment rental side?

Spot market? What do you mean by that, I'm not sure I get that? Jonathan Chen – Private Management Group: Like if someone were to, you know, walk into one of your rental facilities without a reservation, what the availability is like and what the current pricing or demand is like?

Are you talking about current availability on walk ups? Is that what you are saying? Jonathan Chen – Private Management Group: Correct.

Joe you want to respond to that? Joe Nothwang will talk. Move the mike over to Joe.

The first thing to consider, I believe particularly for Hertz and for the rest of the industry, is that we have inventory levels matched very efficiently with the current outlook for demand. Now that said, we do allow some flexibility at the point-of-sale and a controlled environment to negotiate a price for the walk-up customer. That represents less than 10% of our total business and in today's environment it's in the 4% to 6% range. But it is reasonably very representative of the types of rates that you would see displayed on Travelocity or any of the other online channels. So the discounting at point-of-sale is very minimal.

And obviously on the weekends, we have more fleet available and you would get more walk ups there. Midweek, if you were to come in on a Tuesday or Wednesday at a major airport, you probably wouldn't be able to walk up and get that kind of demand because we are very fleet optimized. During anywhere from let's say Tuesday through Thursday and Friday. Okay? Jonathan Chen – Private Management Group: Very good.

Now you asked that on both the equipment rental and the rental car side, right? Jonathan Chen – Private Management Group: Correct.

So Gerry?

Yeah. The seasonality, this season availability is good. Obviously we talked about the imbalance is still the slowing demand against a higher fleet level for the industry and for HERC as well. So the availability is good and except for the industrial and some larger equipment where we're moving to some bigger projects right now. But mostly the earth moving and other small aerial products are available and accessible by customers, which is what we talked about as far as putting pressure on pricing at this point.

Your next question comes from Michael Millman – Millman Research Associates Michael Millman – Millman Research Associates: Thank you. Could you talk a little bit more about your expectations for your fleeting, for rack in particular? I think you said you expected the fleet to be down next year with demand up? Maybe you can give us some more color on that and to what extent you're seeing the other industry participants matching your fleet levels?

Go ahead Joe.

I think the key here is to recall we've said that the fleet is down 15%. This is the U.S. fleet. When our transaction days, the best metric to compare the efficiency of the fleet. So that 1.5 point efficiency level we want to continue that or better as we proceed into 2010.

So and just in terms of the future though, we see obviously with the limited visibility that we have that volume levels will improve, so demand as you know, seasonality wise improves as well. So we're going to have to fleet up sequentially in order to handle third quarter demand and second quarter demand that we're seeing. One of the things on the call that I mentioned was that our visibility so far in the second quarter says there's some upside off of what was a steady state demand level in the first quarter. Second quarter demand seems to be stronger than first quarter demand and as we look at the summer season we've talked a lot with the airlines and looked at our own internal study and we have a suspicion that third quarter demand will be better also than what was in the first quarter. So that means that we will be rotating more fleet in, new fleet, buying new cars at a little higher rate than what we originally anticipated in the first quarter of the year. That's about as much as I can say, Michael. Michael Millman – Millman Research Associates: And when you say that you expect a stronger year, do you mean stronger relative to usual seasonal?

Stronger relative to first quarter. So instead of having transaction days, you know, right now they're minus 13.4 maybe they'll be, we don't know. We don't know what's going to be but that could be three to four points better than that as you move into the third quarter. Michael Millman – Millman Research Associates: I see. So you're talking about it relative to year-over-year, not absolute.

Relative to year-over-year, that's correct. But I said it was sequential. So let me say it again. First quarter transaction days were down 13.4% in the U.S. And, in the U.S., we expect that to improve, going into second and third quarter. It could improve, you know, in the neighborhood of three points, 3 to 4 points. We're not, again, not a lot of visibility right now, but on the limited visibility we have, there could be some upside over the demand rate that we saw year-over-year decline in the first quarter. So, that year-over decline becomes less, moving into second and third quarter. Okay? Michael Millman – Soleil Securities: And, to what extent your prices on your Res book, limited as it may be, showing to what extent?

Advanced reservations, Michael, are just absolutely worthless, I would tell you, because we don't whenever they tell us, it's wrong. And that's what's been going on for the last four months. So, we used to have a very stable way of looking at our business in the future, and now the booking curve is so close in, people are not reserving cars in advance the way they used to, and there's no stability in that. If you use that data to gauge yourself, it's wrong more times than it's right. So advance reservations isn't looking really, for us anyways, any more positive, until it gets very close in, and then it starts to improve. So where we used to have maybe six weeks visibility, seven weeks visibility, now, we're lucky to get two weeks visibility. Michael Millman – Soleil Securities: Can you give us some measure of the percentage of cars that you've been sending into the opaque channels, year-over-year, quarter-over-quarter?

We use the opaque channel when we have extra cars and on weekends, for example and opaque channel, we expect probably will be less and less used, as we go forward, because we're seeing improved demand and improved fleet utilization. Michael Millman – Soleil Securities: Can you quantify that, at all?

No, we don't quantify how much of our revenues go through channels like opaque. Michael Millman – Soleil Securities: Can you give us a -

Joe, you want to give any color on that?

I think key to it is it's a safety valve that you can turn on and turn off, based upon your relative price level. Michael Millman – Soleil Securities: I'm trying to get some ballpark. Is it 10% of the fleet, or is it 25% of the fleet?

No, we have not disclosed that kind of detail. As I said, it's a safety valve. If we do have excess fleet, market by market, we turn it on. Ideally, in the kind of environment we're looking forward, there'll be less and less use of it. Michael Millman – Soleil Securities: And, regarding Advantage, what's that mean for Simply Wheelz?

It means that we will fold Simply Wheelz probably into Advantage brand. So we're likely to take the current Simply Wheelz locations and, over a period of time, make that an Advantage counter. Okay? Michael Millman – Soleil Securities: And, will this produce significant savings, not significant savings?

The synergies between dealing in the leisure, the lower-end leisure market, with the Advantage brand you know provides significant synergies, particularly on the back-end administrative, financial activity. Yes, so there will be significant savings.

And, I mean, you know, the Advantage brand made, last year, revenues in the places we were at were, revenues were around $146 million. And pre-tax margins were actually about 7%.

Seven point five percent.

Seven point five percent, so I know that some analysts have indicated they couldn't see how we could make 10% EBITDA margins. But, if you do the math, last year at 7.6%, that means we would have higher than 10% EBITDA margins. So the existing business was generating that higher than 10% EBITDA margins. And we know that we buy the fleet better, and we know that our back room operations costs are better. So, again, we think this is a very good business for us to expand off of. And as I mentioned on the call, we have 20 airport locations, but we're also negotiating at airports all over, all the time, for new space. And our expectation is very quickly to expand this to at least 40 markets.

Your next question comes from Chris Doherty – Oppenheimer. Chris Doherty – Oppenheimer: I just wanted to ask a little bit about the rental, the revenue per transaction day. I think you said in the statement that it was down 3%. But, can you also give some color on ancillary revenue and what's happening there? That looks like it might have been down a little bit more.

Yes, I think that you're right, that ancillary revenue was down. We were disappointed with our results. We kind of knew why it happened, though. There were two things going on. One is, we reduced some of our compensation from ancillary revenues, and we re-launched a program, because we're in the middle of transitioning from one program to another. That transition caused a lapse in the month of March. We were surprised at that, how much it was tied to compensation. That was one of the issues. And in terms of – also, another issue for us is business travelers, as you might imagine, are cutting some of those ancillary, like NeverLost, for example. Instead of electing to have NeverLost that some of them are electing not to have NeverLost, and it was in their profile. So, we've come up with a new strategy on that, as well, with our corporate customers, giving them additional incentives to use NeverLost. Joe, you want to give a comment on ancillary net revenues?

Yes. Gasoline is the other issue. Very lucrative opportunity for us on the revenue side, with gasoline purchases at the Hertz facility. The dominant customer in that segment is the commercial, customer. And, with commercial travel down, that has been a drag on our ancillary revenues.

But we think there's upside there going forward, based on – if you look at first quarter's performance, we don't expect to repeat that, so. Chris Doherty – Oppenheimer: Yes. And, Mark, can you talk a little bit more about the synergies? I think in the presentation, there's $125 million that was realized in Q1, and then you say that's going to increase the year expectation of $500 million. Does that mean you basically hit the run rate for this year?

Well, I mean no, it doesn't mean we just upped the number. Obviously you're right. The first quarter demonstrates that those cost actions already have traction, right? But, we also have incremental ones to be announced. And, as you may or may not know, I mean based on our track record, we try over-deliver on cost savings. And so whatever number we give you, we're more than confident hitting that number, and then some So I think some of those cost savings become buying related, and but based on the current trajectory, and the way we see the business those cost savings are real. And we should deliver on that number and then some. It's the best way to answer it, I guess. Chris Doherty – Oppenheimer: Yes. And, then, Elyse, just a little quick housekeeping, can you tell us what the A/R and AP balances were at the end of the quarter?

A/R and AP balances – do you want, if I have that handy, for the consolidated company? Chris Doherty – Oppenheimer: Yes.

Yes, hang on one second. I think I have it. At the end of the quarter, accounts receivables – and this is just corporate account, this does not include fleet – was about $700 million, just a little over $700 million. And accounts payable was about $525 million, ballpark. Chris Doherty – Oppenheimer: What was the fleet? That's what I'm actually trying to get to, is to understand that.

The fleet receivables? Chris Doherty – Oppenheimer: Yes.

The fleet receivables, at the end of March, were about $365 million, and the fleet payables were about 405 million.

Your next question comes from Adam Silver – Babson Capital Management.: Adam Silver – Babson Capital Management: Yes, good morning. I just had a couple questions around your year-over-year cost on '09 model year cars. What's been the cost change from '09 versus '08? And can you break that our on a program versus non-program basis?

Yes. On the car costs it's a function of the car sales losses, and it's a function of the mix of the fleet, year-over-year. So we obviously adjusted the depreciation rates in 2008, and some of that gets reflected in 2009. And until we can circulate out the model year '08 cars into the new model year '09 cars, that multi-depreciation is going to be up, year over year. So in the quarter, it was up around 10%, 10% to 12%. The bulk of that was in Europe, where there were heavy de-fleeting activities in the first quarter, as their model year cars began, at the beginning of the year. So they're a little bit delayed versus the U.S. In the U.S., the car costs were only up about 2.7%. And again, these will mitigate, as the year goes on. Adam Silver – Babson Capital Management: Okay. And then have you guys started doing negotiations with OEMs for model year, I guess, 2010 yet?

Preliminarily. We're just in the early stages. Adam Silver – Babson Capital Management: You haven't heard any color on how that's going to expect costs to continue to go on, as we enter that model year?

Yes. That's about the best I can give you as an answer. Adam Silver – Babson Capital Management: And then, my last question is what's your risk-to-program mix that you're planning on for 2010? Is it still around 50/50, or is that going to change a little bit with -

That's been around 70/30 for a while now.

Yes, 75 or so.

So, I expect it to be, you know, 70/30, 75/25.

Okay. [Sam Apibonya] – Columbia Management. Please go ahead. [Sam Apibonya] – Columbia Management: Good morning. I think most of my questions have been answered. I just want to follow-up on a housekeeping item. You mentioned the repurchase of the high yield notes. Can you give me the breakdown again and confirm, for the last time, sort of what the availability is for '10?

The breakdown is we bought about $150 million of par value. Fifty-five percent of that was the senior sub. About a third of it was the senior notes, and the balance was the euro notes. And, in terms of our available basket for a debt buyback, it's about $350 million. [Sam Apibonya] – Columbia Management: Remaining?

Correct. [Sam Apibonya] – Columbia Management: Okay, thank you.

We're not saying that we're going to do that.

We're not – right.

We aren't saying we're going to do that - [Sam Apibonya] – Columbia Management: No, I understand. I understand.

That's how much is available right.

And back to you, speakers.

Okay. Thanks very much, operator. Thanks, everyone, for being on the call. We'll look forward to talking to you next time.

Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation, and for using AT&T Executive Teleconference. You may now disconnect.