Ladies and gentlemen thank you for standing by and welcome to the Hertz Global Holdings 2009 second 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 second quarter results issued yesterday and in the risk factors and forward-looking statements section of the company’s 2008 Form 10-K. Copies of this filing are available from the SEC, from 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 also being made available for replay starting today at 12:30 Eastern and running through August 12, 2009. I would now like to turn the conference over to our host, Leslie Hunziker. Please go ahead.

Good morning and welcome to Hertz Global Holdings 2009 second quarter conference call. You should all have our press release and associated financial information. We’ve also provided slides to accompany our conference call which can be accessed on our website at www.hertz.com/investerrelations. In a minute I’ll turn the 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 of Hertz Europe Limited, and Jerry Plescia, Executive Vice President and President of Hertz Equipment Rental. They’ll be on hand for the Q&A session. 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 turn the call over to Mark Frissora.

Good morning everyone and thanks for joining us. Let’s get started on Slide 6. On June 25 we provided guidance for the 2009 second quarter and as you’ve seen from last night’s press release, we performed very well against those projections. While the global economy continues to have an adverse impact on rental volume and revenue year-over-year, Hertz is benefiting from improving profit retention and margin expansion as our cost savings initiatives take hold. While consolidated second quarter revenue fell 19% year-over-year excluding currency, we were able to reduce adjusted operating expenses by 23% and adjusted SG&A by 26%. These cost actions led to adjusted pretax profit retention of 86% in the 2009 second quarter, and contributed to $81 million of adjusted pretax income. If you look at it from a corporate EBITDA perspective, which is similar to our metric for covenant calculations, profit retention was 81%. This is our third consecutive quarterly improvement in profit retention. We expect to maintain this trend through the back half of the year as we implement our expanding pipeline of cost savings projects. We’re more focused than ever on improving fleet and labor productivity as well as operating process efficiencies. Total worldwide rental car fleet efficiency was 79% in the latest period, 320 basis points higher than the first quarter of 2009 and 261 basis points better than last year. We’re operating a much tighter fleet today. Average fleet units are down 15% compared with last year’s level, outpacing the 12% worldwide decline in rental car transaction days. The continued improvement in fleet efficiency is being driven by more strategic management of logistics and extended transaction length. Consolidated worldwide labor costs declined in the 2009 first half by 22% from last year, reflecting our focus on adjusting our workforce to current business levels.…

Thanks Mark and good morning everyone. Let me begin by summarizing the consolidated results for the second quarter starting on Slide 13. As Mark mentioned, we generated $1.8 billion of total revenue and $81 million of adjusted pretax income in the second quarter. It’s worth noting that our adjusted pretax does not include a $48.5 million gain recognized in April when we purchased $150 million of face value, high yield debt at market prices. And the profit retention of 86% Mark highlighted was the result of actions to aggressively size the business to market conditions and the achievement of sustainable cost savings as we drive continuous process improvements throughout the businesses. As a result, adjusted direct operating and SG&A declined 23 and 26% respectively in the second quarter year-over-year. Now let me discuss these performance trends in a little more detail by business unit. I’ll start with worldwide Car Rental. Despite a 15% fall off in revenue, excluding the impact of currency, the adjusted pretax margin improved to 9.7% in the second quarter from 8.2% a year ago, driven primarily by improvements in the U.S. Before I discuss the cost efficiencies driving margin improvement in U.S. Rent a car, let me spend a minute on revenue per day versus pure pricing, which Mark mentioned earlier. Slide 15 shows the year-over-year change in U.S. Rent a car revenue per day which fell 1%. However, when you adjust for the impact of changes in mix, price is actually 2% higher in the quarter. Revenue per day is a combination of both price and mix. Mix encompasses off and on airport business, leisure, commercial and insurance replacement rentals, rentals related to all different types of car classes, the various reservation channels, and various lengths of keep transactions from hourly, daily and weekly to…

Thanks Elyse. Let’s move forward to the next slide. With these and the trends we’re seeing in the U.S. rental car business, advance bookings continue to build, exceeding our expectations. Leisure volume and pricing are stronger. Our number of contracted accounts is showing a net increase year-to-date. Advantage’s market share is getting back on track as we expand geographic coverage. And off airport continues to strengthen its margins by keeping costs for start up locations low and securing longer length rentals. We generated double digit adjusted pretax margin in U.S. rent a car in the second quarter and improved our corporate EBITDA margin over last year in the second quarter. Essentially, higher car costs year-over-year are being offset by better fleet efficiency. We’ve been successful in developing a number of new car sales channels, including direct to dealer and rent to buy, which allow us to reduce the time it takes to sell cars. In addition, we’ve made great progress in leveraging our contribution management system to improve both yield management and fleet plan optimization in all [audio impairment]. Fleet management and logistics are also benefiting from the addition of the Advantage business and our ability to capitalize on fleet synergies. Denver Airport is our pilot location to share fleet between Hertz and Advantage during specific periods. In this market, our rental facilities are less than one mile apart. We are able to accelerate the ramp up of the Advantage fleet in this market by approximately 8% by moving excess weekend inventory at Hertz to Advantage, and then returning those cars to Hertz on Monday morning. This methodology permits accelerated volume growth at Advantage while increasing fleet utilization at both brands through fleet sharing. The end result is lower per unit vehicle cost for both businesses. In Europe, our rent…

(Operator Instructions) Your first question comes from Michael Millman - Millman Research Associates.

I guess on your next to the last slide, you talk about advance bookings continue to build and leisure pricing continues which we’d expect seasonally but can you put that in some context year-over-year? And then sort of related, you appear and leisure increase was 2%, yet Avis announced that their second quarter numbers were up 5 to 7% total company, and maybe you can talk about why there seems to be such a discrepancy.

Yes, I guess in terms of the future demand, answer that kind of question first, you know on the rental car side again we see demand improving into the third quarter and beginning into the fourth quarter we’re seeing improvements in advance reservations there as well, a slight improvement. Again the visibility in the fourth quarter is much more murky but we see improvement. I guess, you know, we anticipate, the best way to answer that is our fleet will probably be down instead of being down 15% we saw in the second quarter, it’ll probably be down in the fourth quarter closer to the range of 5 to 8%. So a much lower reduction in order to see increased demand that we see coming. So those are kind of our fleet plans. So that might answer the demand equation. We also expect our deprecation per vehicle to come down significantly in the third and fourth quarter, based on those numbers. I can’t tell you what that’s going to come down but it’s going to come down significantly from what you saw in the second quarter. In addition to that, just talk about pricing for a minute, in the second quarter we saw our leisure on airport pricing was actually up 5.7%, Michael. So it was up significantly, in the range you saw maybe forecasted by Avis. Our commercial sector continues to be under pressure in the range of 3 to 5%. You know the other thing that I mentioned is if that we have a very broad swath of markets, unlike the other rental companies. Broader than any rental company frankly. And that creates, you know, in some cases a smaller increase in overall pricing. You know if you look at, you know, Budget, you know, as it relates to Avis Budget, that’s a big leisure brand for them. And Joe do you have some comments on that?

Just I think the opportunity for them to increase prices with the large umbrella that’s out there with the Hertz pricing on the premium side overall gives them the ability to grow on a percentage basis, you know, greater than Hertz has the leader in the pricing segment.

So that may explain it. But again it’s explainable to us. We’re not concerned about it. We know that we still have the price leadership position in terms of the highest prices out there. You can check that anytime you want. We’re the highest. Generally speaking, we have the highest prices across the country. So.

That’s second quarter pure airport plus 5 to 7%, 5.7, what does that look like in June and July?

I don’t have that data here, handy with me. But I mean I just gave you the statistics for the quarter, but in general pricing should continue to improve we hope if in fact demand continues to strengthen because fleets are very tight across the entire industry.

Your next question comes from Emily Shanks - Barclays Capital.

I just have a couple of questions. Thanks for all the info around the ABF side. One follow up on the balance sheet. Just to be clear, you guys did not buy back any of the bonds, i.e., the senior or the sub outside of the April purchases? Is that correct?

That’s correct.

And then Mark you had mentioned that you still think that the HERC side of the business is over fleeted. Can you just give us a sense of what your view is around industry wide fleet levels at rack and then if you can somehow box how over fleeted you think it looks at HERC?

Okay, so you said industry fleet levels in rent a car and then also at HERC, right?

Yes please.

So in rent a car fleets are extremely tight with all vendors. I would say that, well we could tell Avis Budget and Dollar Thrifty were extremely tightly fleeted, more so than let’s say Hertz was going into the second quarter. [Erack] which we call [Erack] it’s Enterprise we felt were about as fleeted like we were. Not as tight. While we were tight we weren’t super tight, I’ll put it that way to you. Going into this new demand in July and August, we’re seeing further tightening actually because the demand is higher than what we anticipated and what the industry anticipated. Demand and again in July and August is probably I’ll say 3 points, 3 to 4 points probably higher than what we would have thought. When we talked to the investment community back when we did our preannouncement of earnings improvement and we now [inaudible] so demand continues to strengthen, so will continue to cause very, very tight fleet through the end of August going into probably the first two weeks of September at least. And on the HERC side, we think the entire industry is over fleeted obviously and that’s driven around the fact that instead of selling equipment at huge losses, people are hoping demand comes back because the losses on some of the equipment if you were to sell it today, you know, would have 5 to 6 to 7 year paybacks. So certainly, you know, when we look at those kind of payback formulas it makes sense to continue to age the fleet a little bit and then, you know, we’re putting it to use selectively where we have opportunities springing up due to pent up demand that we think will come back eventually and hopefully by the year end. And also due to some of the new programs that we’ve launched, new business contracts we’ve had. Jerry, do you want to add some color to that?

Sure Mark. As you saw the first quarter, details from the major competitors, the industry appears to be 8 to 10 percentage points down in utilization from prior year. And based on the activity we’ve seen in the second quarter it appears that that has remained about at those levels. So it’ll take several quarters of additional fleet sales, auction sales by the industry to level set that fleet. And you know it’s really a matter of the equation of, you know, the rapid sale at auction plus the fees that create a large loss to sell rapidly versus a more orderly sale. That’s what the entire industry’s going through at this point.

And I have just one follow up question around the rack comments that you made, Mark. Do you think that, I mean it sounds like its extremely tight, you guys obviously have quite a bit of flexibility around being able to grow your fleet I would imagine to meet that demand. Are you seeing or do you expect to see that you guys would take market share going into the months of July, August, September given?

Yes, yes. And we do. We anticipate increased market share. We already saw it in June data. In fact on GDS market share which you can see, you know, on a real time basis our market share which has generally been flat even a little negative was up almost a full point in the month of June, through the first three weeks. So again, yes, we’re seeing improvements in market share and expect to have market share improvements due to the fact that we have more flexibility on the fleet to up fleet if you will when [inaudible].

Your next question comes from John Healy - Northcoast Research.

A question for you, Mark. Just philosophically, with financing starting to come back to the rent a car business, what’s your level of confidence that the fleet discipline, the pricing discipline is something that’s sustainable in 2010 and maybe beyond? I’m trying to just understand what in a way you’re thinking about the industry going over the next year or two, once people start to lend to this business again.

I think, you know, I’m pretty confident that there’ll be more discipline as a result of this recession. I think if you look at other business models, historically what’s happened you’ll find that, you know, the industry leaders end up learning lessons, right, about how to maintain tight pricing and fleet discipline in environments after they go through, and, you know, feel the pain if you will of having sloppier discipline. So my guess is based on history and what I’ve seen in other industries as well as even this one there’ll be more discipline over, you know, the long haul as a result of what we experienced over the last 12 months.

And then in the de-fleeting process, I was hoping you could talk about what your plans are for this year, when you guys might decide to start de-fleeting if you’re planning on doing so, maybe a little bit earlier than last year just to make sure that, you know, you’re able to get out of fleet for the beginning of the fourth quarter. And if there’s anything that we should anticipate from a program or risk car standpoint as we head now through the third quarter and into the fourth quarter.

I mean, you’re right, we typically will after the summer season begin de-fleeting. But we’re, you know, probably in the mode that we actually may increase the overall size of the fleet due to demand levels that we think will happen in the fourth quarter. We feel pretty comfortable. We have a lot of flexibility where, you know, we obviously if we need to hold some cars we’ll hold them, but we have a lot of flexibility with the program buys we’ve made with a couple of our key OEMs. And we pretty much have all the new cars we need and we want to rotate actually a lot of new cars in because of the fact that our cars have aged. And so we expect our depreciation to go down because these cars are at lower depreciation rates than our current ones. And our maintenance contracts would go down as we were able to rotate some of this older fleet in with new fleet. So we actually plan to rotate as many new cars in as we can during the end of the third and fourth quarter. And the overall fleet size instead of maybe being down 15%, again I signaled that it may be down 5 to 8%, again depending on demand. But obviously that means that we’re, you know, going to be just rotating and yet keeping the levels up there because of the demand as it increases.

And then just two quick questions. Mark, can you give some color on what you maybe saw geographically in HERC this quarter and then, maybe a little bit more color than what you already did? And then the acquisition activity, a few quarters in a row, are you guys, you know, picking up some interesting assets? Is that something that we should continue to expect for you guys in the next couple of quarters? And maybe what your kind of pipeline looks for that and what type of properties you’re looking at.

Yes, I guess. Are all these questions related to HERC?

On the acquisition side either rack or HERC, where there’s more priority.

Yes, I guess either one. I mean we’re looking at small, strategic acquisitions that are accretive immediately. And so there’s lots of opportunities on the HERC side as you look at smaller deals. And we’re trying to increase our ability to do deals faster and small acquisitions. So we’ve built an infrastructure around that, and built some relationships so we can do that a little quicker because we think that will get our revenue streams moving quickly. In terms of growth overall, Jerry, I’ll let him comment on this, but overall there’s several regions that were actually showing improvement year-over-year but with western Canada is a region that was actually showing deterioration. So between the improvements and the deterioration, essentially it’s been stable and flat for the last 30 days. Jerry, do you want to make some comments on that?

Sure. From a regional basis we saw the regions that were previously the worst, the western half of the U.S. and Florida, start to become less negative. So the ones that went into the recession deeper, fastest, have seen some stabilization. The industrial side of the business where there’s now somewhat of a downturn in industrial’s affecting western Canada, offsetting some of the improvement in Florida and the western region. But we are encouraged overall that the volume decline which occurred month-by-month through the first quarter overall has been virtually stable from the very end of March really through the present day. So those dynamics are giving us a little bit of encouragement that we’re finding the bottom.

Your next question comes from Richard Kwas - Wells Fargo Securities, LLC.

On corporate pricing, business pricing, I know you mentioned that volume stabilized here. What’s your sense for when you kind of comped the worst of the pricing issue there?

Hey, as soon as our rational competitors decide to behave and act rationally. So. I mean we’re protecting our national accounts. We’re protecting share there. And we’re hopeful that, you know, the pricing levels that we’re seeing will flatten out and improve. Year-over-year comps will begin to improve as you know as we move into, on the equipment rental side especially, as we move into third and fourth quarter, the comps become easier. Jerry, do you want to again make comments?

The fleet balance is a big issue as fleet becomes more balanced with demand. Obviously that’s a big driver. And then internally as each rental company gets hold of their own initiatives. I mean, it’s really internally driven. We have a yield management program. We’re very selective and we do protect our largest and best accounts. And it’s really the give and take between fleet balance and what’s happening in the industry. So we haven’t seen that improve in the second quarter but we’re hopeful that, you know, just lately the last three or four weeks have quoted, new contracts are going out or about stable with the prior months. So there’s a little light at the end of the tunnel.

And the pricing on the rent a car side, Rick, really becomes much better on commercial accounts, business accounts, once we get through our September cycle. So the year-over-year comp there becomes easier as well because that’s where we saw kind of a precipitous drop in, you know, I’d say 3 to 5 points to drop in some of our large corporate accounts. And that becomes a much easier comp as we move through September and into October.

Just on the fleet side, Jerry, it was mentioned, you know, that several quarters before the fleet size for the industry really, you know, meets with where demand is. What are we talking about here? Are we talking well into 2010? What’s your best guess on when things are really right sized on [inaudible].

It’s anybody’s guess as to when the volume demand will start to uptick, but based on current conditions and the gap in utilization within the industry, I would say we have to get through the winter most likely. And as we head into the summer season or the peak season, probably around the second quarter, you know, mid-2010 is the best guess at this point, you’ll start to see construction start to improve. Stimulus project monies should start to impact some of that. And this general improvement in demand should help balance it. But that would be a best guess at this point.

So is it fair to say that pricing and equipment rental should continue to deteriorate from here on out over the next two to three quarters until again the middle of next year?

I don’t think we’ll see continued deterioration, you know, based on the volume trend we see now as that starts to balance and the comps get easier. I think we’ll see sequentially possible improvement off of these bottom rates. I don’t think it’ll continue to deteriorate from current levels at a significant pace.

I think to answer your question specifically, Rich, fourth quarter, you know, versus third quarter you should probably see some kind of pricing improvement. That’s our best guess right now.

And then last question, Mark. In terms of the guidance you mentioned that you think it’s going to be up in the upper end of the range there that you’ve provided. What could kind of derail that forecast right now, knowing what you know?

Not a whole lot. I mean, you know, we’re pretty confident in that, you know. So I guess we feel like our assumptions that we’ve built into the fourth quarter for U.S. rent a car seem to, as I mentioned to all of you on the call, seem to be very conservative based on what we’re seeing. So I mean that would have to, like I said we built in conservative assumptions to build our guidance, right? So, you know, unless the bottom were to drop out in the U.S. and Europe rent a car markets and we were already very conservative, assuming continued volume degradation year-over-year into the fourth quarter, you know, unless again there’s something that crashes and burns here we feel pretty comfortable with our guidance.

So some kind of meaningful macro shock over the next [inaudible].

Yes. Yes exactly.

Your next question comes from [Sam Epibonya] – Colonial Management. Please go ahead.

Hello Sam. Sam, are you there? Okay.

Moving on to the next question, it comes from the line of [Matthew Sporer] – Strategic Value Partners. [Matthew Sporer] – Strategic Value Partners: I had a quick question about sort of where you saw the de-fleeting that’s been going on. And I think you mentioned it briefly, but the associated depreciation and amortization or the depreciation on the fleet itself, and how you saw sort of trending for the remainder of the year? If you saw?

On rent a car? [Matthew Sporer] – Strategic Value Partners: Yes, sorry, on rent a car. How you saw depreciation changing with respect to the size of fleeting. If you saw the fleet was going to be about 15% smaller for the remainder of the year, would you expect that depreciation should follow that?

No, I did not say. I said that if in the fourth quarter and probably part of the third quarter that our fleet size would instead of being down 15% would be down in the range of 5 to 8%. And then in terms of our year-over-year depreciation per vehicle, we expect that to be down year-over-year in the U.S. on a full year basis, probably in the neighborhood of 1 to 2% down year-over-year for the full year in the U.S. by the time we get through with our fleet [audio impairment], you know, into the fourth quarter. Okay? [Matthew Sporer] – Strategic Value Partners: Okay.

As you know, depreciation per vehicle was up in the second quarter somewhere in the range of 7 to 15% in Europe, but if you look at the slides you’ll see that. And now we’re saying you can do the math on this. If we’re going to be down for the full year 2% in depreciation per vehicle in the U.S., that’s showing significant improvement in depreciation and cost per vehicle that we anticipate going forward. [Matthew Sporer] – Strategic Value Partners: Sure. But in aggregate, depreciation should continue to come off for the entire fleet as the size of the fleet decreases, even if there is going to be small up ticks.

Yes. That’s correct.

Your next question comes from Gentry Klein – Cedrus Capital. Gentry Klein – Cedrus Capital: Just following up on the last question. On the rack side, I know you obviously expect depreciation to be down meaningfully for the rest of the year on a per vehicle basis. Can you break it out in terms of whether that’s the decline is how much of it’s based on mix versus an increase in [resid] values?

You know in terms of mix we’re not changing it that much. It’s changed, you know, in the last 12 months because of the leisure market. But a lot’s just declined in the overall price of the vehicle. And you’re right, residuals will certainly be stronger year-over-year than they were in the third and fourth quarter. So I don’t have an exact, you know, number for you but.

The model year mix will improve, right? So as we cycle in more 2009 model year cars and less 2008 that’s going to drive that depreciation per car cost down. Gentry Klein – Cedrus Capital: I guess what I’m wondering is how much of the decline in depreciation is due to the new model year versus the increase in [resid] values on your current fleet. Didn’t know if you had a sense of that.

If I were to guess it, you know, it’s probably 50-50. You know, 50% of it’s due to the decline and then the pricing of the new fleet. The other 50% would be due to better improved residual buys. And I’m hazarding a guess here by giving you rough math. Okay? Gentry Klein – Cedrus Capital: Also you said you gained market share. Can you tell us who you were taking it from?

No. I don’t try and talk about competitors or market share. But I’m just talking about in GDS there’s something that’s out there that we can get real time market share on and in June we looked at GDS third party market shares, which is about in U.S. rent a car it’s probably 35% of our volume, 30 to 35%. And we’re showing improvement there, right? So we’re showing, you know, that’s not an area we’ve typically improved in because it’s third party stuff. But we almost had a full point improvement in the month of June which is significant for us.

Your next question comes from Chris Doherty - Oppenheimer & Co. Chris Doherty - Oppenheimer & Co.: Mark, can you just clarify your comment in terms of HERC demand seasonally? Is it that you’re not seeing the historic pick up or is it that you’re not seeing any pick up at all seasonally?

Well, if we’re talking second quarter what we saw was flat, right? So instead of having a pick up in the second quarter like you’d normally expect, right, it was basically a flat environment where the deterioration year-over-year did not change. It stayed at a constant rate of deterioration. And that has continued actually into July. So we’ve had a fairly flat environment where the year-over-year decline is the same. It’s flat. Now we were hoping obviously that in the second quarter we’d start seeing a pick up, you know, with the season and we did not see that. Okay? Chris Doherty - Oppenheimer & Co.: In terms of actual volume, Q2 was better than Q1.

It improved versus Q1 sequentially a little. Jerry?

So net volume was down because we did see the decline monthly through the first quarter.

Right. Pricing drove about probably how much of the decline?

300 basis points.

About 300 basis points of decline was due to pricing for the second quarter versus the first quarter.

That’s right. Volume which ended the low point at the end of the first quarter flattened out the rest of the quarter, so on average we had lower net volume and lower pricing.

Did you hear Jerry? Chris Doherty - Oppenheimer & Co.: Yes.

Okay, good. Chris Doherty - Oppenheimer & Co.: And then Elyse just a question. I know there was some disclosure in the press release yesterday about change in accounting for CapEx. Can you just clarify that? My understanding is that right now when you guy a piece of equipment it becomes a CapEx item. And then when you pay for it, the fact that you pay for it or don’t pay for it is a balance sheet item in working capital. And that would be cash flow from ops. Now what you’re going to do is you’re going to sort of net that together in CapEx. Is that what the plan is?

It’s actually, what we do today is exactly what you said. So the working capital piece goes in the operating cash flows and the actual equipment piece is in investing. And we’re going to now include them both in the investing category. So in a sense, you gross up the investing piece when you buy the equipment and then the working capital piece gets filtered out when you actually pay for it.

No change to overall totals on that.

Yes. On the net cash flow it doesn’t have an impact. Chris Doherty - Oppenheimer & Co.: If you were to have done that, stayed with the old accounting, can you tell us what that effect would have been for this quarter?

Do we have that number for this quarter? I don’t know if we calculated. It would have been small for this quarter. I think the biggest difference is in the first quarter and that’s going to be fully disclosed in the Q. Chris Doherty - Oppenheimer & Co.: And then just one last question in terms of rotating the fleet. I think Mark yesterday you made a comment in your interview that you’re bringing down the average age of the fleet sales from around 20 plus months to 14 or 15 months. How much of that started in Q2?

Yes. What we’re saying is we typically aged the fleet at 20 from an amortization standpoint it’s around 20 months, 21 months. What’s the exact age in QS? 20.5 right now. So what I said was that over the next 12 to 18 months that age is going to come down, probably in the neighborhood of 17 months roughly. Again it’s hard for me to get real prescriptive on this because it’ll be based on demand and if demand improves we’ll bring it down faster. But at this point kind of our plan would be that the age of that amortization, which means the fleet becomes if you will newer, would be going from around 21 to about 17. And we’d make it faster than that again if we had higher demand. Chris Doherty - Oppenheimer & Co.: Will that negative effect your working capital in that you’re going to sell more of it quicker, in which case it may go to AR and stay in there for a period of time? I know it also has to depend on what the prices are and the prices are probably different versus selling at 20 months versus 15 months.

I don’t have an answer on that, but I mean we can get with you after the call. If you want to call us or call Elyse and we’ll answer the question and do the math with you on it. But in general, you know, certainly cash flows on a total net basis have improved because we’ve de-fleeted, right? So if you start growing the fleet again, you know, there’s lumpiness, you know, quarter to quarter as you grow it. In one quarter receivables and payables become out of balance and then they fix themselves in the subsequent quarter. So one of the reasons for our stronger cash flows, certainly over the last couple of quarters, has been twofold. One, because we’ve been de-fleeting and selling that fleet. That generates cash. We’ve been buying less fleet at HERC, which has been, you know, generating incremental free cash flow on a year-over-year basis. But then also we’ve been improving in some cases depreciation. So it’s helped in that sense as well. Residual values have improved significantly. So I’m just trying to give you the moving pieces. In general the company was generating probably before the recession, you know, a free cash flow on a base of $400 million a year. We think it’ll be improved from that once we get out of this recession, we get to normalized volumes, but that was kind of the steady stay, free cash flow business model before we started seeing a recession.

Your next question comes from [Myra Lee – Frese]. [Myra Lee – Frese]: One of my questions has been answered but my other question has to do with can you give more color on the business volume? You said it’s stabilized. Are you going to maybe use price to maybe regain some more business or just kind of wait it out?

Well again in terms of business volume, and again did you talk rent a car or HERC? [Myra Lee – Frese]: Oh. Sorry. Rent a car.

On rent a car? Well again on business volume, my best way of explaining it I guess without giving a forecast of revenues other than what we’ve already given out there is to tell you that the fleet is going to be less down in the fourth quarter. It’s down 15% now and in the U.S. transaction days were down. They were down minus 10.8, minus 11, okay? So transaction days are what you use to calibrate your fleet. Right? They were down, transaction days which are a good measurement of volume, were down almost 11 and our fleet was down 15. So if you do the math, if our fleet’s going to be down 5 to 8 that means that, you know, transaction days are going to be down accordingly as probably keep that correlation the same. You know because we have about 350 basis points of fleet efficiency we think will continue to bleed into the numbers going forward on rent a car.

Your next question comes from Ryan Brinkman - J.P. Morgan.

In regards to the $361 million in cost savings year-to-date that has allowed the profit retention to perform as well as it has, how should we think about this performance going forward as revenue begins to return? For example, can you help us think about what portion of this cost reduction, especially in SG&A, relates to the permanent removal of fixed costs?

We probably believe that, you know, we have around 700 basis points of cost reduction right now. And our breakeven’s probably 6 to 700 basis points lower than it used to be. I guess in terms of actual fixed costs, my guess is about 300 basis points of fixed costs have been eliminated. However, I’d hazard a guess. Now I haven’t done the math on it because we haven’t taken all of our cost structure and identified what’s variable, semi-variable, fixed and semi-fixed and done the mathematical calculation there, so I don’t want you to. But about 300 basis points at least of fixed costs have probably come out of this business. So we feel pretty good about our operating leverage going forward on increased volume. I mean you’re seeing margin expansion on 15% reduced sales in the rent a car business. Actual margin expansion. I mean that’s significant. So you can imagine that once we get to normalized volume levels like we had in ’07, you know, there’s going to be significant margin expansion because of the fixed costs take out that we’ve had.

Okay. Thanks. I appreciate that.

[inaudible] a lot better at controlling our variable costs as well. You know, a much more fast way. So to flex up and down we’re fine. Okay?

Great. Thank you.

Your next question comes from Yilma Abebe - J.P. Morgan.

One housekeeping item. What was the amount of spending both LC’s and then borrowings on the ABL? Is that current?

I think that letters of credit were about $200 million plus and there’s no outstanding at quarter end under the ABL.

I think that’s all the questions. Operator?

Okay.

All right. So thank you all for attending the conference call. We look forward to giving you future news. Thank you all.

Okay 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.