Cambridge, Mass., February 15, 2013 - Zipcar, Inc. (Nasdaq: ZIP) ("Zipcar" or the "Company") , the world's leading car sharing network, today reported results for the fourth quarter and year ended December 31, 2012. On December 31, 2012, Zipcar and Avis Budget Group, Inc., a Delaware corporation ("Avis Budget"), and Millennium Acquisition Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Avis Budget ("Merger Sub"), entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which, on the terms and subject to the conditions set forth in the Merger Agreement, Avis Budget has agreed to acquire all of the outstanding shares of Zipcar for $12.25 per share in cash, without interest, and pursuant to which Merger Sub will be merged with and into Zipcar with Zipcar continuing as the surviving corporation and a wholly-owned subsidiary of Avis Budget (the "Merger"). The Merger Agreement was approved by the board of directors of both companies. As previously announced, the waiting period related to the Merger under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired on February 11, 2013. The closing of the transaction remains subject to other customary conditions, including approval by Zipcar shareholders and review by UK competition authorities, and is expected to close in March or April, 2013. Prior to the closing of the Merger, Avis Budget and Zipcar will continue to operate as separate companies.

For the 2012 fourth quarter, revenue increased 12% to $70.7 million compared to $62.9 million in the prior year period despite the previously anticipated negative impact from Hurricane Sandy, which reduced revenue by just over $1 million. Usage revenue represented $58.6 million in the fourth quarter of 2012 compared to $53.3 million in the prior year period with fee revenue representing substantially all of the remaining revenue in both periods. Fee revenue represented 17% of total revenue in the 2012 fourth quarter compared to 15% in the prior year period. For the full year 2012, revenue grew 15% to $278.9 million compared to 2011 revenue of $241.6 million with usage revenue representing $235.1 million in 2012 compared to $207.2 million in 2011. Fee revenue represented substantially all of the remaining revenue in both years at 16% of total revenue in 2012 and 14% of total revenue in 2011.

Fourth quarter US GAAP net income increased to $13.8 million, or $0.34 per diluted share, versus net income of $3.9 million, or $0.09 per diluted share, in the prior year period. Net income in the 2012 fourth quarter includes a non-cash net tax benefit of $10.9 million or $0.27 per diluted share primarily related to the release of valuation allowance against U.S. net deferred tax assets as well as $1.3 million from the unanticipated sale of ZEV Credits, which were partially offset by approximately $1.0 million in previously anticipated costs associated with Hurricane Sandy, including vehicle damages and increased operating costs, and $0.8 million in costs associated with the Merger Agreement. The release of the valuation allowance is based on the projected ability of Zipcar to utilize the deferred tax assets to offset future taxable income in the U.S. Net income in the fourth quarter of 2011 included a gain on the sale of ZEV Credits of $2.5 million. US GAAP net income for the full year 2012 was $14.7 million, or $0.35 per diluted share, compared to a loss of $7.2 million, or ($0.24) per share, in 2011.

This press release contains the non-GAAP financial measure of Adjusted EBITDA. Zipcar defines Adjusted EBITDA as earnings before non-vehicle depreciation, non-vehicle interest expense, interest income, amortization, preferred stock warrant liability adjustment, stock compensation expenses, acquisition and integration costs, taxes, including the benefit from the release of the valuation allowance, loss of equity-method investee, other income related to Zero Emission Vehicle (ZEV) credits and other gains or losses associated with events of a non-recurring nature, such as costs related to Hurricane Sandy and transaction costs related to the Merger Agreement. The Company believes that this non-GAAP measure is an important measure of its operating performance because it allows management, investors and analysts to evaluate and assess the Company's core operating results from period to period after removing the impact of changes in the Company's capital structure, income tax status and method of vehicle financing, and other items of a non-operational nature that affect comparability. The Company includes vehicle-related depreciation and interest in its definition of Adjusted EBITDA because vehicles represent core operating assets used in the delivery of the Company's service that require periodic replacement. In addition, the exclusion of these costs would result in a lack of comparability in the treatment of vehicles that are owned or leased under capital leases and those leased under operating leases. The Company believes that various forms of the Adjusted EBITDA metric are often used by analysts, investors and other interested parties to evaluate companies such as Zipcar for the reasons discussed above. Adjusted EBITDA is also used for planning purposes and in presentations to the Company's board of directors as well as in the Company's annual incentive compensation program for senior management.

Any statements in this press release about future expectations, plans and prospects for Zipcar, including statements about the expected timetable for consummation of the merger, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These statements contain the words "believes," "anticipates," "plans," "expects," "will" and similar expressions. Actual results may differ materially from those currently anticipated due to a number of risks and uncertainties that are subject to change based on factors that are, in many instances, beyond Zipcar's control. Risks and uncertainties that could cause results to differ from expectations include: uncertainties as to the timing of the merger; uncertainties as to how Zipcar stockholders will vote their shares with respect to the merger; the risk that competing offers will be made; the possibility that various closing conditions for the transaction may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; the effects of disruption from the transaction making it more difficult to maintain relationships with employees, members, business partners or governmental entities, other business effects, including the effects of industry, economic or political conditions outside of Zipcar's control; transaction costs; actual or contingent liabilities; or other risks and uncertainties discussed in documents filed with the U.S. Securities and Exchange Commission (the "SEC") by Zipcar, including factors discussed in the "Risk Factors" section of Zipcar's Annual Report on Form 10-K for the year ended December 31, 2011, and other documents Zipcar periodically files with the SEC. In addition, the forward-looking statements included in this press release represent Zipcar's views as of the date of this press release. Zipcar anticipates that subsequent events and developments will cause its views to change. However, while Zipcar may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Zipcar's views as of any date subsequent to the date of this press release.

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