The Car and Truck Fleet and Leasing Management Magazine

PHH Corporation Announces Third Quarter 2007 Results

November 27, 2007

MT. LAUREL, N.J. – PHH Corporation announced results for the quarter and nine months ended Sept. 30, 2007. Net revenues for the quarter ended Sept. 30, were $484 million, a decrease of 9.5 percent from net revenues of $535 million for the quarter ended Sept. 30, 2006. Net loss for the third quarter of 2007 was $38 million, compared to a net loss for the third quarter of 2006 of $7 million.

Net revenues for the nine months ended Sept. 30 were $1.69 billion compared to $1.67 billion for the same period in 2006, an increase of one percent. Year-to-date Net loss through the third quarter of 2007 was $24 million, compared to a year-to-date net loss through the third quarter of 2006 of $17 million.

Net revenues for the third quarter of 2007 for the Fleet Management Services segment were $470 million compared to net revenues in the third quarter of 2006 of $451 million. Segment profit for the three months ended Sept. 30 was $30 million compared to $24 million for the three months ended Sept. 30, 2006.

The increase of $19 million in net revenues in the third quarter of 2007 compared to the third quarter of 2006 was primarily due to a $13 million increase in fleet lease income due to higher total lease billings resulting from higher interest rates on variable interest rate leases and new leases combined with a two percent increase in the average number of leased vehicles. In addition, fleet management fees increased by $2 million during the third quarter of 2007 compared to the third quarter of 2006 due to increases in fee-based products. The $4 million increase in other income in 2007 was primarily due to increased interest income.

Also during the third quarter of 2007 compared to the third quarter of 2006, the average number of leased vehicle and fuel cards each increased two percent, while the average number of accident management vehicles increased one percent. The average number of maintenance service cards declined by three percent for the third quarter of 2007 compared to the third quarter of 2006.

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