PHH Arval, Environmental Defense Launch PHH GreenFleet Pilot Program

(Sparks, Maryland, and Washington, D.C. – July  18, 2006) – PHH Arval, a leading fleet management company and subsidiary of PHH Corporation [NYSE: PHH] and Environmental Defense, one of the nation’s leading environmental organizations, have announced the pilot of a new climate-neutral program for vehicle fleets: PHH GreenFleet. The first program of its kind in North America, PHH GreenFleet is an effective new way to reduce fleet operating costs, decrease global warming pollution, and meet corporate environmental goals.

PHH GreenFleet is designed to give companies the tools they need to enhance financial and environmental performance. The linkage is simple: burning a gallon of fuel creates greenhouse gas emissions and costs money, so cutting fuel consumption will reduce pollution and fuel costs. The pilot program will help PHH Arval clients:

  * Reduce greenhouse gas emissions and fuel consumption in a variety of customized ways, through in-depth analysis, fleet consultation, and objective recommendations.
  * Measure greenhouse gas emissions and report on environmental improvements over time
  * Offset remaining emissions via identification and purchase of credible greenhouse gas offsets.

“The millions of fleet vehicles on the road in North America are critical for commerce and economic development, but they also impact the environment through oil and gas consumption and greenhouse gas pollution,” according to George Kilroy, president and chief executive officer of PHH Arval. “We are committed to being the industry leader in environmental management by helping our clients measure and reduce these impacts, while improving the bottom line.”

As part of PHH Arval’s commitment to the environment, the Maryland-based company has also offset its own fleet emissions, making it the first North American fleet management company to employ a climate-neutral fleet. To neutralize the climate impact of its sales fleet, PHH Arval worked with Carbonfund.org, a non-profit leader in carbon offset services, to acquire greenhouse gas offsets. By purchasing verified emissions reductions or “offsets,” PHH Arval is ensuring that greenhouse gas emissions from its fleet are counterbalanced by reductions of greenhouse gases elsewhere and demonstrating the power of markets to help reduce global warming pollution.

Tom Murray, project manager, Environmental Defense, said, “With the PHH GreenFleet program,  we hope to develop a new leadership practice in fleet management by demonstrating that fleets can cost-effectively reduce emissions by improving efficiency, purchasing carbon offsets, and using other innovative pollution reducing tools.”

PHH Arval and Environmental Defense formed a strategic partnership in 2005 to find ways to reduce greenhouse gas emissions while producing business benefits for commercial fleets.