47129--3/30/2007--HERTZ

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{debt, indebtedness, cash}

{cost, regulation, environmental}

{operation, natural, condition}

{gas, price, oil}

{tax, income, asset}

{system, service, information}

{loss, insurance, financial}

{product, liability, claim}

{interest, director, officer}

{condition, economic, financial}

{cost, contract, operation}

{financial, litigation, operation}

{acquisition, growth, future}

{cost, operation, labor}

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Risks Related to Our Business An economic downturn could result in a decline in business and leisure travel and non-residential capital investment, which could harm our business. We face intense competition that may lead to downward pricing, or an inability to increase prices, which could have a material adverse impact on our results of operations. Our car rental business is dependent on the air travel industry, and disruptions in air travel patterns could harm our business. Our business is highly seasonal, and a disruption in rental activity during our peak season could materially adversely affect our results of operations. We may not be successful in our business strategy to expand into the off-airport rental market, including marketing to replacement renters and insurance companies that reimburse or pay for such rentals. We face risks of increased costs of cars and of decreased profitability, including as a result of limited supplies of competitively priced cars. We face risks related to decreased acquisition or disposition of cars through repurchase and guaranteed depreciation programs. We could be harmed by a decline in the results of operations or financial condition of the manufacturers of our cars, particularly if they are unable, or reject their obligations, to repurchase program cars from us or to guarantee the depreciation of program cars. We may not be successful in implementing our strategy of reducing operating costs and our cost reduction initiatives may have other adverse consequences. Our reliance on asset-backed financing to purchase cars subjects us to a number of risks, many of which are beyond our control. Fluctuations in fuel costs or reduced supplies could harm our business. Manufacturer safety recalls could create risks to our business. We face risks arising from our heavy reliance on communications networks and centralized information systems. The concentration of our reservations, accounting and information technology functions at a limited number of facilities in Oklahoma, Alabama and Ireland creates risks for us. Claims that the software products and information systems that we rely on are infringing on the intellectual property rights of others could increase our expenses or inhibit us from offering certain services, which could adversely affect our results of operations. If we acquire any businesses in the future, they could prove difficult to integrate, disrupt our business, or have an adverse effect on our results of operations. We face risks related to changes in our ownership. We face risks related to liabilities and insurance. We could face significant withdrawal liability if we withdraw from participation in one or more multiemployer pension plans in which we participate. We have received an informal request from the SEC to provide information about car rental services that we provide to our independent registered public accounting firm in the ordinary course of business. Environmental laws and regulations and the costs of complying with them, or any liability or obligation imposed under them, could adversely affect our financial position, results of operations or cash flows. Changes in the U.S. and foreign legal and regulatory environment that impact our operations, including laws and regulations relating to the insurance products we sell, customer privacy, data security, insurance rates and expenses we pass through to customers by means of separate charges, could disrupt our business, increase our expenses or otherwise could have a material adverse effect on our results of operations. The misuse or theft of information we possess could harm our reputation or competitive position or give rise to material liabilities. The Sponsors control us and may have conflicts of interest with us in the future. Risks Relating to Our Substantial Indebtedness We have substantial debt and may incur substantial additional debt, which could adversely affect our financial condition, our ability to obtain financing in the future and our ability to react to changes in our business. Despite our current indebtedness levels, we, Hertz Holdings and our subsidiaries may be able to incur substantially more debt. This could further exacerbate the risks associated with our substantial indebtedness. We may not be able to generate sufficient cash to service all of our debt, and may be forced to take other actions to satisfy our obligations under such indebtedness, which may not be successful. A significant portion of our outstanding indebtedness is secured by substantially all of our consolidated assets. As a result of these security interests, such assets would only be available to satisfy claims of our general creditors or to holders of our equity securities if we were to become insolvent to the extent the value of such assets exceeded the amount of our indebtedness and other obligations. In addition, the existence of these security interests may adversely affect our financial flexibility. Restrictive covenants in certain of the agreements and instruments governing our indebtedness may adversely affect our financial flexibility. An increase in interest rates would increase the cost of servicing our debt and could reduce our profitability. The instruments governing our debt contain cross default or cross acceleration provisions that may cause all of the debt issued under such instruments to become immediately due and payable as a result of a default under an unrelated debt instrument.

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47129--3/30/2007--HERTZ_CORP