U.S. Securities and Exchange Commission
Washington, D.C.

Litigation Release No. 18102 / April 24, 2003

, 03 Civ. 0933-RCL (D.D.C.)

SEC To Suspend Two Auditors of Cendant Corporation and CUC International
from Practicing before the Commission

   On April 23, 2003, the Securities and Exchange Commission filed a
   settled in the United States District Court for the District of
   Columbia against two Ernst & Young LLP ("E&Y") partners, Kenneth
   Wilchfort and Marc Rabinowitz, in connection with audits of Cendant
   Corporation ("Cendant") and its predecessor, CUC International
   ("CUC"). The Complaint alleges that the two partners aided and abetted
   Cendant's and CUC's violations of Section 13(a) of the Securities
   Exchange Act of 1934 ("Exchange Act") and seeks a permanent
   injunction. Without admitting or denying the Commission's allegations,
   Wilchfort and Rabinowitz consented to the entry of judgments enjoining
   them from violating the reporting provisions of the federal securities
   laws. Without admitting or denying the findings in the Commission's
   Orders, Wilchfort and Rabinowitz also consented to the issuance of
   administrative orders, based on the injunctions, suspending them from
   appearing or practicing before the Commission as accountants and
   providing that they may apply for reinstatement after four years.

   The Complaint alleges that Wilchfort and Rabinowitz were E&Y's
   partners responsible for providing audit and accounting advisory
   services to Cendant and CUC. The Complaint further alleges that,
   despite the fact that Cendant and CUC provided them with false
   documents and otherwise lied to them, Wilchfort and Rabinowitz
   improperly failed to detect that Cendant's and CUC's financial
   statements were not presented in conformity with generally accepted
   accounting principles. The Complaint allleges that Wilchfort and
   Rabinowitz had a duty to withhold their firm's audit report containing
   an unqualified opinion and take appropriate steps to prevent these
   financial statements from being filed with the Commission and
   circulated to investors. The Complaint also alleges that, by failing
   to do so, Wilchfort and Rabinowitz aided and abetted Cendant's and
   CUC's violations of the reporting provisions of the federal securities
   laws.

   The judgments will permanently enjoin Wilchfort and Rabinowitz from,
   directly or indirectly, aiding and abetting any issuer of a security
   registered pursuant to Section 12 of the Exchange Act by filing any
   report required by the Securities Act of 1933 or the Exchange Act and
   the rules of the Commission that fails to contain information and