Date of Release: 2007-04-03

Enterprise Rent-A-Car

Confirms the Issuer Rating at A (low); Trend Remains Stable

DBRS has today confirmed the Issuer Rating of Enterprise Rent-A-Car Company (Enterprise or the Company) at A (low). The trend remains Stable. This rating action follows Enterprise’s announcement that it has entered into a definitive agreement to purchase Vanguard Car Rental Group Inc. (Vanguard).

DBRS views this proposed transaction as positive since it will join two car rental companies with complementary businesses: Enterprise’s primary business is in the local and insurance replacement segments of the car rental industry; Vanguard’s National Car Rental (National) and Alamo Rent A Car (Alamo) brands serve the airport segment of the market. Further, within the airport segment, the National and Alamo brand names serve different clientele, corporate and leisure, respectively, adding to client diversity.

Offsetting Enterprise’s expected increased market share in the airport segment gained from the addition of the Alamo and National businesses is the additional debt and higher leverage that will likely be associated with this transaction. DBRS expects that Enterprise’s strong cash flows should help reduce leverage to historic levels. DBRS will continue to monitor the structure of the purchase, the actual level of added debt, goodwill and the ultimate impact on leverage.

The rating is based on the Company’s strong market position and significant brand strength in the local market. The less cyclical nature of this business has allowed Enterprise to produce strong and very predictable revenues, income and cash flows throughout various business and economic environments. Also factored in the ratings is the Company’s proven ability to manage its fleet through the normal and stressed business cycles.

Enterprise’s extensive history of successfully managing its fleet and the residual risks inherent in the fleet is a significant rating factor advantage. Moreover, this ability will be key as the Company’s fleet will significantly increase should the fleets of National and Alamo be integrated. Given this strong history of fleet management, DBRS believes Enterprise has the capacity to effectively integrate the two fleets. Ample liquidity and capitalization are the foundation for a sound balance sheet and are reflected in the Company’s rating.

Going forward, DBRS will look for continued revenue, profitability and liquidity strength. Ultimately, upward ratings will be determined by the Company’s ability to sustain its strong market position while achieving the expected benefits of the additional diversified customer base.

DBRS's rating definitions and the terms of use of such ratings are available at www.dbrs.com.