MT. LAUREL, NJ — PHH Corporation announced results on May 13 for the quarter ended March 31, 2005. Net revenues for the quarter ended March 31, 2005 were $279 million, an increase of 27 percent over net revenues of $220 million for the quarter ended March 31, 2004. The pre-tax loss from continuing operations for the first quarter of $204 million included spin-off related expenses of $280 million, which approximates previously disclosed estimates of these expenses. Pre-tax income was $6 million for the corresponding quarter of last year. For the first quarter of 2005, net loss including discontinued operations was $250 million or $4.75 per share compared to net income of $23 million or $0.44 per share for the first quarter of 2004. Excluding spin-off related expenses of $280 million, pre-tax income from continuing operations was $76 million compared to pre-tax income from continuing operations of $6 million in the first quarter of 2004. Spin-off related expenses included a goodwill impairment charge of $239 million for the company's fleet management business and a net charge of $37 million resulting from the prepayment of debt. These expenses were not allocated to the reportable segment results. The fleet management segment contributed $16 million of pre-tax income, an increase of $6 million or 60 percent from the first quarter of last year resulting in part from unit increases in all major product lines and higher average transaction volumes. Of that $6 million increase, $4 million was due to lower debt costs driven by capital restructuring at the time of the spin-off. The fleet segment was successful in maintaining its existing client base and developing a strong pipeline of prospective clients. The mortgage services segment contributed $61 million of pre-tax income in the first quarter of 2005. Servicing contributed $87 million, which more than offset losses in production of $26 million. Servicing was aided by positive results in our mortgage servicing rights ("MSRs") risk management activities of approximately $58 million. Rising interest rates throughout the quarter resulted in an increase in value of MSRs, which was partially offset by losses on the derivatives associated with the MSRs. The 10-year treasury rate, widely regarded as a benchmark for mortgage rates, increased 28 basis points during the first quarter of 2005. Production losses were expected as the company maintained capacity in anticipation of the addition of new private label partners. The servicing portfolio ended the quarter at $146 billion. Loans closed during the quarter totaled $9.4 billion.