ERAC Canada Finance Ltd. & Enterprise Rent-A-Car Company

Jarmo Saari, CFA, Kent Wideman,CFA / 416-593-5577 ext.2257, ext.2235 / e-mail: jsaari@dbrs.com

DBRS is confirming the above ratings of ERAC Canada Finance Ltd. and Enterprise Rent-A-Car Company ("Enterprise" or "the Company") with continuing Stable trends, based on the Company’s leadership position and experience in its core local rent-a-car operation in the U.S. Despite soft used car prices and the economic and travel industry slowdown in the first half of 2001, which have recently reduced the profitability of other car rental companies active in the U.S. car rental and leasing industries, Enterprise expects record revenues and profits for fiscal 2001. Such contrasting results can be attributed to the Company’s focus on the local (non-airport) car rental segment, which is less cyclical than the airport segment, and the advantages Enterprise has over other car rental companies in the areas of customer sourcing and the disposal of vehicles using a multi-distribution approach. The latter abilities have enabled the Company to continue to sell used vehicles at a significant gain, although a continued weak used car market and an accounting change are expected to reduce average gains on sale somewhat in Fiscal 2002. Although the recent tragic events in the U.S. are anticipated to lead to reduced demand for car rentals in on-airport operations, at least in the short term, we do not anticipate the events to have a significant overall negative financial impact on Enterprise, given its local market focus.

Slower growth than planned in the car rental fleet has helped increase liquidity, which is expected to lead to further improvement in the Company’s leverage. The Company’s international operations, although still small in relation to the core U.S. business, continue to grow, and are now profitable on an overall basis. Operations outside of the U.S. include Canada, the U.K., Germany, and Ireland.