Cendant Corporation yesterday announced that, in addition to pursuing its previously announced plan to spin-off its Travel Distribution Services division (TDS) to shareholders, which is anticipated to occur in October, 2006, it will also consider a sale of that division.

Commenting on the announcement, Henry Silverman, Cendant's Chairman and CEO said "As a result of receiving a number of unsolicited indications of interest to acquire TDS, the Company has decided to further explore other strategic alternatives for that business. The Company's decision to consider a sale in addition to pursuing the spin-off is due, in part, to the fact that a sale of TDS is not expected to result in a material tax liability, as would a sale of Cendant's other divisions."

The Company recently announced the new TDS executive management team, comprised of Gordon Bethune, Chairman, (formerly Chairman and CEO of Continental Airlines) and Jeff Clarke, CEO and President (formerly Chief Operating Officer of CA).

Commenting on the various strategic alternatives, Mr. Bethune said "Our decision to join TDS was based upon the opportunity we see in driving growth and value of a highly integrated global travel company. We believe that this can be achieved in either the public or private arena and we are fully supportive of the Board's desire to optimize the value for Cendant shareholders."

Mr. Bethune added, "The announcement last week that TDS will be re-named Travelport further identifies our company as the destination for travel bookings, with a strong and unifying identity for the distinct travel businesses that comprise TDS."

Regarding the business and its prospects, Mr. Clarke said "TDS, with its leading brands such as Orbitz, Galileo and GTA (Gullivers Travel Associates), is well positioned to experience considerable growth in the months and years ahead and I am energized about leading this dynamic company as it realizes its potential."

Cendant reiterated its plan to spin-off Realogy Corporation and Wyndham Worldwide to shareholders as previously announced, which would result in three separate public companies, including Avis Budget Group, Inc., if TDS is sold. It is currently anticipated that the net cash proceeds from a potential sale of TDS, if completed, would be utilized primarily to reduce the debt anticipated to be incurred by TDS, Realogy Corporation and Wyndham Worldwide to pay off the public corporate debt of Cendant. Whether TDS is sold or spun-off, Cendant still intends to retire, redeem or repay all of its outstanding corporate debt in connection with the separation plan.

The company also announced that it had retained Citigroup, JPMorgan and Evercore Partners as its financial advisors in connection with the potential sale of TDS. In addition, Citigroup and JPMorgan have developed a financing proposal for qualified buyers. There can be no assurance that any potential purchaser or Cendant will enter into a definitive agreement for any transaction or that any transaction will be completed.