The outsourcing agreement, coupled with an ongoing $450-million multi-year contract for network services that AT&T Solutions provides to Cendant�s corporate offices and brands, increases the value of the relationship to $550 million over the life of the contracts.

AT&T Solutions, the networking professional services subsidiary of AT&T, will assist with advanced global networking management and help to standardize communications technology capabilities across Cendant�s global telecommunications infrastructure. Additionally, AT&T Solutions will assume day-to-day management of voice-related equipment and services for Cendant�s extensive global customer contact center infrastructure. The contract covers 75 locations, including 32 call centers in the United States, Canada and Europe that serve Cendant brands such as Days Inn®, Howard Johnson® and Ramada® hotels and motels; RCI® timeshare exchange, and Avis®, among others.

The agreement supports Cendant�s strategic goals of focusing on its core business, reducing expenses and investing in technology to increase operating effectiveness. Cendant expects to realize savings of more than $40 million over the life of the new and existing contracts.
 

�The Solutions contract is a natural extension of a great relationship between AT&T and Cendant,� said Henry R. Silverman, Cendant�s chairman, president and CEO. �Cendant supports AT&T in areas where we have strategic advantage, such as car rentals and employee relocation, and we look to AT&T in the telecommunications areas in which they excel. In addition, Cendant is closely allied with AT&T in mutually beneficial marketing relationships with our Preferred Alliance programs and membership businesses.�

Rick Roscitt, president of AT&T Business Services, said, �We�re delighted to expand upon AT&T�s long, mutually beneficial relationship with Cendant. We�re also excited by Cendant�s vision for the future, and we look forward to providing the full benefit of AT&T Solutions� world-class networking skills.�

�By introducing AT&T Solutions� networking and contact center management skills, we�re setting the stage for Cendant companies to provide their customers an entirely new, incredibly rich contact experience,� said Guy Gray, senior vice president, contact centers and telecommunications. �We have every expectation that this transformation will enable Cendant companies to continue setting a global standard
for customer service.�

AT&T Solutions will manage Cendant�s networking capabilities from its Global Client Support Centers in Dublin, Ohio, and Birmingham, U.K., via the AT&T Solutions Global Enterprise Management System (GEMS). GEMS produces seamless e-business networking capabilities� including predictive network management�by integrating proprietary software developed at AT&T Labs with best-in-class enterprise-management software.

The Cendant agreement is another example of AT&T executing its strategy to be the broadband network of choice for companies of all sizes as it helps them manage, transform and innovate in their businesses.

Cendant Corporation is a global provider of real estate, travel and direct marketing related consumer and business services.

AT&T is among the world�s premier voice, video and data communications companies, serving more than 80 million customers, including consumers, businesses and government. AT&T has annual revenues of more than $62 billion and 160,000 employees, and provides services to customers worldwide. 

Statements about future results made in this release meeting may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.