Www.hertz.com Let Hertz Put You in the Driver’s Seat.

Let Hertz Put You in the Driver's Seat.

2007 Annual Report

Let Hertz Put You in the Driver's Seat.

A Rich Legacy... In 2008, Hertz celebrates its 90th Anniversary. Hertz was

among the first car rental companies in the world, and remains the global leader in customer-focused car and equipment rental innovations. We provide our customers rental experiences based on speed, service and selection, and deliver shareholders consistent, strong financial results.

A Balanced Approach to the Future... During Hertz's first full

year as a publicly traded company on the New York Stock Exchange, the company delivered superior financial performance, and established the framework for longterm, increased shareholder value. We will continue to improve shareholder value by emphasizing, in equal measure:

n Customer Satisfaction n Employee Satisfaction n Cash Management

Hertz Firsts Hertz has scored many "firsts" in the car rental industry. Here are some of the most notable Hertz Firsts:

1918 Hertz begins renting cars. 1925 Hertz establishes first coast-to-coast car rental network through national franchise system. 1932 Nation's first airport Rent-a-Car location at Chicago Midway. 1933 Revolutionary Rent-It-Here/ Leave-It-There option increases use of rent-a-cars. 1950 First European location in France. 1955 First car rental company with 1,000 locations. 1965 Hertz Equipment Rental Corporation [HERC] is formed. 1978 First Nationwide Emergency Road Service.

1979 HERC enters the industrial equipment rental and leasing markets. 1980 n First Express Service, #1 Club members bypass the airport counter. n First Computerized driving directions in over 100 cities. n HERC enters European market. 1989 Hertz launches #1Club Gold?, allowing members to go directly from the airplane to their car. 1995 First On-Board Navigation System, NeverLost?. 1998 HERC expands into Canada. 2000 Hertz introduces #1 Club Gold Five Star and President's Circle.

2001 Hertz launches the Prestige Collection. 2002 Hertz first introduces SIRIUS Satellite Radio. 2006 n Hertz rolls out the Fun Collection?. n Debut of the Shelby GT-H, a special run of 500 performance-modified Ford Mustang GTs. n Hertz introduces the Green Collection of fuel-efficient, environmentally-friendly cars. 2007 n Hertz launches Hourly Rental Program in New York City and Boston. n Debut of the Shelby GT-H convertible.

n Hertz expands company-wide environmental initiatives: Adds Toyota Prius Hybrid to fleet; donates to the National Park Foundation and Mayor's Fund to Advance New York City. n Hertz launches Simply Wheelz by Hertz, offering competitive rates, an easy-to-use reservation website and advanced kiosk machines to rent and return vehicles. n Hertz joins with Nickelodeon to introduce Nick-On-the-Go, a fully portable, pre-loaded touch-screen media player. n Hertz introduces motorbike rentals in Spain.

Contents: 1. Financial Highlights 2. Letter to Shareholders 4. Customer Satisfaction (Rent-A-Car and Hertz Equipment Rental) 12. Employee Satisfaction 14. Cash Management 16. Board of Directors and Officers IBC. Shareholder Information

n Hertz Fun Collection

Featured on our front cover and page 1 are the Corvette convertible and the Jeep Wrangler from our Hertz Fun Collection.

Financial Highlights

Worldwide Revenue

(in millions)

Adjusted Pre-Tax Income*

(in millions)

$10,000 $8,000 $7,469

$8,058

$8,686

$6,000

$4,000

$800 $640

$660.7

$480

$486.7

$330.9 $320

Adjusted EPS*

$1.50

$1.20

$0.90

$0.60

$0.62

$0.92

$1.26

Levered After-Tax Cash Flow After Fleet Growth* (in millions)

$600

$552.6

$380 $160

$284.2

$(60)

$2,000

$0 2005

2006

2007

$160

$0 2005

Pro Forma

2006

2007

$0.30

$0.00 2005

Pro Forma

2006

2007

$(280)

$(500)

$(449.7)

2005 Pro Forma

2006

2007

*Indicates a Non-GAAP measurement presented and reconciled within the section of the Annual Report to Stockholders entitled "Definitions and Non-GAAP Reconciliations," which follows our Annual Report on Form 10-K included in this Annual Report.

Hertz Global Holdings, Inc. 1

Letter to Shareholders

Dear Hertz Shareholders, Hertz over-delivered on its financial targets for 2007, executing on our promise to further de-lever the company while increasing revenues and earnings, and improving customer service. We laid the groundwork for a fundamental transformation of the company that will make us even more competitive in our global rental markets while delivering higher shareholder value. We are building on a legacy of industry leadership worthy of a legendary brand celebrating its 90th Anniversary in 2008.

We continue to build on our legacy of innovation in today's rapidly evolving, globalized economy. In fact, we are accelerating the pace of change to stay ahead of current macro-economic conditions.

Our vision is to be the lowest-cost, highest quality and most customer-focused company in the global rental markets we serve. Achieving this vision is predicated on a balanced approach to the business in three areas:

n Customer Satisfaction n Employee Satisfaction n Cash Management An analysis of the most successful companies demonstrates a balanced approach is the best way to achieve sustainable, long term success. There are several elements of our Customer Satisfaction strategy, none more important than worldwide implementation of a Net Promoter Score (NPS) system in 2007. NPS is an online tool to measure customer satisfaction, rental-by-rental, in real time. We receive over 30,000 customer responses every month, and we use NPS feedback to drive service improvements across the rental network, and NPS scores improved significantly as a result. An intensive focus on customer service explains why Hertz received, unsolicited, 18 "Best of" Awards worldwide last year. We continued innovating in 2007 to enhance the customer's rental experience. We expanded our Green Collection of environmentally friendly cars, adding over 1,000 Toyota Prius hybrid

2 Hertz Global Holdings, Inc.

Mark P. Frissora Chairman of the Board and Chief Executive Officer

Hertz Management Team Top row, left to right: Richard Broome Lauren S. Babus Don Serup LeighAnne Baker Charles Shafer Elyse Douglas Gerald A. Plescia Lois Boyd Jeffrey Zimmerman Bottom row, left to right: John A. Thomas Joseph F. Eckroth Joseph R. Nothwang Mark P. Frissora Michel Taride Frank Camacho Robert J. Stuart

vehicles, with another 2,500 on the way in 2008. We launched Simply Wheelz in Orlando and Spain ? our low cost, high-tech rental brand to serve value-oriented, leisure customers. We are now the market leader in Germany in van and truck rentals, a rapidly growing business across our European network.

Equally important is Employee Satisfaction. We spent an additional $7 million on training and improved the U.S. tuition reimbursement program. Additionally, we are introducing new performance management and talent development systems to fully align our strategies, employees and compensation programs.

We made significant progress in 2007 on our Cash Management strategies. Working capital improved by over $280 million in 2007, as we pushed focus on and responsibility for working capital to lower levels in the company. We also generated levered cash flows* of over $550 million, and increased Corporate EBITDA* by $162.8 million, or 11.8%, in 2007.

Our 2007 results can also be measured by analyzing key financial indicators, driven by revenue growth and efficiency initiatives in equal measure. Hertz generated over $660 million of adjusted pre-tax income* in 2007, up 35.8%, on record worldwide revenues of $8.7 billion, including over $620 million in new revenues, 7.1% of 2007 worldwide revenues. We opened 360 rental locations worldwide in 2007, introduced new product lines and entered new market sectors in both car and equipment rental. We are poised to establish a long-term presence in the most exciting, emerging rental markets in the world: China and India.

Our efficiency strategy is equally diversified. We reduced staffing levels in 2007 to eliminate unnecessary layers of management and bureaucracy, and we will continue to improve productivity in 2008. We are implementing new outsourcing programs to improve efficiency in several areas including properties, facilities, procurement and IT.

In 2007, we fully launched the Hertz Improvement Process (HIP), our version of Lean/Six Sigma, focused on employee-generated work process improvements. We implemented HIP at 248 locations and trained almost 9,000 employees in 2007. By streamlining their work, our employees are more efficient and provide better customer service. HIP is a key element of our goal to create a culture of continuous improvement at Hertz.

Additionally, we are reengineering major business processes, and implementing a global supply chain strategy. For example, fleet-related costs comprise over 30% of our total expenses, and we are thoroughly reengineering fleet management programs from the purchase and delivery of vehicles, through their rental life and final disposition.

Efficiency savings helped us achieve financial success last year and enabled us to fund $65 million in incremental spending on our brand, operations and people, a vital reinvestment in our future.

Our equal focus on Customer Satisfaction, Employee Satisfaction and Cash Management is the platform for the company's long term success. Macro-economic conditions will affect the businesses, but will not deter us from achieving sustained excellence, and delivering increased shareholder value, during our 10th decade of brand and industry leadership.

Mark P. Frissora Chairman of the Board and Chief Executive Officer Hertz Global Holdings, Inc. and The Hertz Corporation

* Indicates a Non-GAAP measurement presented and reconciled within the section of the Annual Report to Stockholders entitled "Definitions and Non-GAAP Reconciliations," which follows our Annual Report on Form 10-K included in this Annual Report.

Hertz Global Holdings, Inc. 3

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