AGM Statement

RNS Number:1391K
Avis Europe PLC
17 April 2003



17 April 2003

                             AGM TRADING STATEMENT


At Avis Europe's AGM at noon today, Sir Bob Reid, Chairman, will comment:

"As expected, first quarter revenues were affected by the weaker economic
conditions in Europe, but also by customers' growing anticipation of conflict in
Iraq. Additionally, we are seeing reductions in price as a result of competitive
activity in the continuing weak environment.


These factors impact the Corporate-related markets and increasingly the long
haul business. We continue to grow our intra-European Leisure business, which,
in the absence of further conflict, should develop positively through the
summer.


We expect these conditions to affect particularly the first half of the year,
with some recovery through the peak summer months.


We have limited visibility under current trading conditions, however our
internal planning assumption at this stage is for a reduction in the range of
5-10% of full year revenues.


We have maintained very tight control on operational costs, notably fleet and
staffing levels, and our fleet utilisation and staff productivity are presently
slightly ahead of last year. However, we are now taking further actions to
minimise the build-up of seasonal fleet and staffing. We are also reducing all
other discretionary spending and postponing non-essential capital expenditure.


Furthermore, we have launched a major structural change programme to improve
operating margins involving a simplification and standardisation of our
back-office financial systems and technology platforms. It includes the opening
of a shared service centre located in Central Europe and will be implemented
over the next two years at a cost of Euro70 million, with a payback of four years.


We are progressing successfully with the integration of the recently acquired
Budget business, including streamlining of systems and a refocusing of support
for the licensee network. The acquisition will reduce Group profits this year by
Euro4-6 million, consistent with previous guidance and we are planning to be in a
position to expand the Budget brand significantly into 2004."


-ends-

Enquiries:    Mark McCafferty/Martyn Smith                 01344 426644
              Ben Foster, Financial Dynamics               020 7269 7247







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