Hertz Expands IBM Services Contract

13 May 2008

Hertz has expanded its relationship with IBM signing a five-year contract for global information technology to support Hertz's overall reengineering and efficiency improvement efforts.

"Hertz has been reengineering its business over the past year with the aim of becoming the lowest cost, highest quality, and most customer-focused company in the markets we serve," said Mark P. Frissora, Chairman and Chief Executive Officer of The Hertz Corporation. "We continue to select service providers who will enable the Company to drive efficiencies as well as quality and service improvements worldwide."

"Hertz and IBM have a long standing, successful business partnership," added Hertz Senior Vice President and Chief Information Officer, Joseph Eckroth. "By expanding our relationship with IBM to encompass global services, we'll be able to adapt greater efficiencies throughout the organization through IBM's industry standards for development, deployment and service management processes."

Under the contract, IBM will expand its services to provide application maintenance and development services and management for the Company's rent a car technology systems, support and operations for mid-range hardware and software and will establish operations for a global help desk for internal Hertz support. In addition, IBM will continue to provide Hertz with application maintenance and development services for the Company's equipment rental and claims management divisions and will continue to provide technical support and operations of the IBM mainframe system.

"We chose to extend our agreement with IBM as its industry expertise, global delivery capabilities and secure, energy efficient data centers will enable Hertz to improve IT performance while reducing associated costs," continued Eckroth. "Partnering with IBM enables us to focus on strengthening our core competency of developing innovative solutions for the business while still delivering best-in-class technology services that increase the flexibility of Hertz's information technology environment."

In order to help Hertz achieve its technology goals, IBM will support the Company's global technology operations currently located in Oklahoma City, supporting global applications, including North America and European counter systems, global financial systems, and global reservation systems. IBM will support Hertz through its global delivery centers and will operate in the Hertz Technology Centers in Oklahoma City.

"We are working closely with Hertz to find new ways to use IBM's technology and industry know-how to strengthen the IT systems that support its business," said Bob Zapfel, IBM general manager, IT Delivery. "IBM's strong record of delivery excellence for Hertz has allowed them to reduce operational costs and increase productivity while focusing on their core business and customers."

The agreement was signed in the first quarter of 2008.