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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





FORM 10-Q



|þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended March 31, 2008



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from to

Commission File
Number 1-14387

United Rentals, Inc.

Commission File Number 1-13663

United Rentals (North America), Inc.

(Exact Names of Registrants as Specified in Their Charters)







|                                                   |  |                                      
|-------------------------------------------------- |  | -------------------------------------
|Delaware Delaware                                  |  | 06-1522496 06-1493538                
|(State of Incorporation)                           |  | (I.R.S. Employer Identification Nos.)
|                                                   | 
|Five Greenwich Office Park, Greenwich, Connecticut |  | 06831                                
|(Address of Principal Executive Offices)           |  | (Zip code)                           

Registrants telephone number, including area code: (203) 622-3131





Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    þ  Yes     ̈  No

Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of large accelerated filer, accelerated filer and smaller
reporting company in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer    þ    Accelerated Filer     ̈    Non-Accelerated Filer     ̈    Smaller
Reporting Company     ̈

Indicate by check mark whether the registrant is a shell
company (as defined in Rule 12b-2 of the Exchange Act).     ̈    Yes    þ    No

As of April 24, 2008, there were 86,406,167 shares of United Rentals, Inc. Common Stock, $.01 par value, outstanding. There is no market for the
common stock of United Rentals (North America), Inc., all outstanding shares of which are owned by United Rentals, Inc.

This combined Form
10-Q is separately filed by (i) United Rentals, Inc. and (ii) United Rentals (North America), Inc. (which is a wholly owned subsidiary of United Rentals, Inc.). United Rentals (North America), Inc. meets the conditions set forth in General
Instruction (H) (1) (a) and (b) of Form 10-Q and is therefore filing this report with the reduced disclosure format permitted by such instruction.









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UNITED RENTALS, INC.

UNITED RENTALS (NORTH AMERICA), INC.

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2008

INDEX



|        |  |                                                                                                                                     |  |     
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------- |  | ----
|        |  |                                                                                                                                     |  | Page
|        |  |                                                                                                                                    
|PART I  |  | FINANCIAL INFORMATION                                                                                                               |  | 4   
|        |  |                                                                                                                                    
|Item 1  |  | Unaudited Condensed Consolidated Financial Statements                                                                               |  | 4   
|        |  |                                                                                                                                    
|        |  | United Rentals, Inc. Condensed Consolidated Balance Sheets as of March 31, 2008, March 31, 2007 and December 31, 2007 (unaudited)   |  | 4   
|        |  |                                                                                                                                    
|        |  | United Rentals, Inc. Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2008 and 2007 (unaudited)     |  | 5   
|        |  |                                                                                                                                    
|        |  | United Rentals, Inc. Condensed Consolidated Statement of Stockholders Equity for the Three Months Ended March 31, 2008 (unaudited) |  | 6   
|        |  |                                                                                                                                    
|        |  | United Rentals, Inc. Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2008 and 2007 (unaudited) |  | 7   
|        |  |                                                                                                                                    
|        |  | Notes to Unaudited Condensed Consolidated Financial Statements                                                                      |  | 8   
|        |  |                                                                                                                                    
|Item 2  |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                               |  | 21  
|        |  |                                                                                                                                    
|Item 3  |  | Quantitative and Qualitative Disclosures About Market Risk                                                                          |  | 27  
|        |  |                                                                                                                                    
|Item 4  |  | Controls and Procedures                                                                                                             |  | 27  
|        |  |                                                                                                                                    
|PART II |  | OTHER INFORMATION                                                                                                                   |  | 28  
|        |  |                                                                                                                                    
|Item 1  |  | Legal Proceedings                                                                                                                   |  | 28  
|        |  |                                                                                                                                    
|Item 1A |  | Risk Factors                                                                                                                        |  | 28  
|        |  |                                                                                                                                    
|Item 2  |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                         |  | 28  
|        |  |                                                                                                                                    
|Item 6  |  | Exhibits                                                                                                                            |  | 30  
|        |  |                                                                                                                                    
|        |  | Signatures                                                                                                                          |  | 31  



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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this report are forward-looking in nature. Such statements can be identified by the use of forward-looking terminology
such as believe, expect, may, will, should, seek, on-track, plan, intend or anticipate, or the negative thereof or comparable
terminology, or by discussions of strategy or outlook. You are cautioned that our business and operations are subject to a variety of risks and uncertainties, many of which are beyond our control, and, consequently, our actual results may differ
materially from those projected by any forward-looking statements. Certain of such risks and uncertainties are referred to below under Item 1ARisk Factors, and described therein, and in our Annual Report on Form 10-K for the year ended
December 31, 2007. Our forward-looking statements contained herein speak only as of the date of this report or, in the case of any document incorporated by reference, the date of that document. We make no commitment to update or publicly
release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations.



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PART I. FINANCIAL INFORMATION



|Item 1. | Financial Statements
|------- | --------------------

UNITED RENTALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In millions, except share data)



|                                                                                                                                                                                                       |  |               |       |               |   |                  |  |   |      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------- | ----- | ------------- | - | ---------------- |  | - | -----
|                                                                                                                                                                                                       |  | March 31,2008 |       | March 31,2007 |   | December 31,2007
|ASSETS                                                                                                                                                                                                 |  |               |       |               |   |                  |  |   |      
|Cash and cash equivalents                                                                                                                                                                              |  | $             | 515   |               | $ | 104              |  | $ | 381  
|Accounts receivable, net of allowance for doubtful accounts of $27, $35 and $26 at March 31, 2008, March 31, 2007 and
December 31, 2007, respectively                                                  |  |               | 452   |               |   | 500              |  |   | 519  
|Inventory                                                                                                                                                                                              |  |               | 95    |               |   | 169              |  |   | 91   
|Prepaid expenses and other assets                                                                                                                                                                      |  |               | 54    |               |   | 70               |  |   | 57   
|Deferred taxes                                                                                                                                                                                         |  |               | 74    |               |   | 51               |  |   | 72   
|                                                                                                                                                                                                       |  |               |       |               |   |                  |  |   |      
|Total current assets                                                                                                                                                                                   |  |               | 1,190 |               |   | 894              |  |   | 1,120
|Rental equipment, net                                                                                                                                                                                  |  |               | 2,796 |               |   | 2,688            |  |   | 2,826
|Property and equipment, net                                                                                                                                                                            |  |               | 440   |               |   | 381              |  |   | 440  
|Goodwill and other intangible assets, net                                                                                                                                                              |  |               | 1,396 |               |   | 1,385            |  |   | 1,404
|Other long-term assets                                                                                                                                                                                 |  |               | 50    |               |   | 62               |  |   | 52   
|                                                                                                                                                                                                       |  |               |       |               |   |                  |  |   |      
|Total assets                                                                                                                                                                                           |  | $             | 5,872 |               | $ | 5,410            |  | $ | 5,842
|                                                                                                                                                                                                       |  |               |       |               |   |                  |  |   |      
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                                                   |  |               |       |               |   |                  |  |   |      
|Current maturities of long-term debt                                                                                                                                                                   |  | $             | 157   |               | $ | 61               |  | $ | 15   
|Accounts payable                                                                                                                                                                                       |  |               | 275   |               |   | 344              |  |   | 195  
|Accrued expenses and other liabilities                                                                                                                                                                 |  |               | 216   |               |   | 224              |  |   | 310  
|                                                                                                                                                                                                       |  |               |       |               |   |                  |  |   |      
|Total current liabilities                                                                                                                                                                              |  |               | 648   |               |   | 629              |  |   | 520  
|Long-term debt                                                                                                                                                                                         |  |               | 2,413 |               |   | 2,509            |  |   | 2,555
|Subordinated convertible debentures                                                                                                                                                                    |  |               | 146   |               |   | 146              |  |   | 146  
|Deferred taxes                                                                                                                                                                                         |  |               | 559   |               |   | 439              |  |   | 539  
|Other long-term liabilities                                                                                                                                                                            |  |               | 64    |               |   | 106              |  |   | 64   
|                                                                                                                                                                                                       |  |               |       |               |   |                  |  |   |      
|Total liabilities                                                                                                                                                                                      |  |               | 3,830 |               |   | 3,829            |  |   | 3,824
|                                                                                                                                                                                                       |  |               |       |               |   |                  |  |   |      
|Preferred stock$0.01 par value, 5,000,000 shares authorized:                                                                                                                                          |  |               |       |               |   |                  |  |   |      
|Series C perpetual convertible preferred stock$1,000 per share liquidation preference, 300,000 shares issued and outstanding at
March 31, 2008, March 31, 2007 and December 31, 2007                  |  |               |      |               |   |                 |  |   |     
|Series D perpetual convertible preferred stock$1,000 per share liquidation preference, 150,000 shares issued and outstanding at
March 31, 2008, March 31, 2007 and December 31, 2007                  |  |               |      |               |   |                 |  |   |     
|Common stock$0.01 par value, 500,000,000 shares authorized, 86,369,380, 81,366,085 and 86,329,773 shares issued and outstanding at
March 31, 2008, March 31, 2007 and December 31, 2007, respectively |  |               | 1     |               |   | 1                |  |   | 1    
|Additional paid-in capital                                                                                                                                                                             |  |               | 1,495 |               |   | 1,430            |  |   | 1,494
|Retained earnings                                                                                                                                                                                      |  |               | 469   |               |   | 99               |  |   | 431  
|Accumulated other comprehensive income                                                                                                                                                                 |  |               | 77    |               |   | 51               |  |   | 92   
|                                                                                                                                                                                                       |  |               |       |               |   |                  |  |   |      
|Total stockholders equity                                                                                                                                                                             |  |               | 2,042 |               |   | 1,581            |  |   | 2,018
|                                                                                                                                                                                                       |  |               |       |               |   |                  |  |   |      
|                                                                                                                                                                                                       |  | $             | 5,872 |               | $ | 5,410            |  | $ | 5,842
|                                                                                                                                                                                                       |  |               |       |               |   |                  |  |   |      

See accompanying notes.



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UNITED RENTALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In millions, except per share amounts)



|                                                                    |  |                             |      |      |   |       |  
|------------------------------------------------------------------- |  | --------------------------- | ---- | ---- | - | ----- | -
|                                                                    |  | Three Months EndedMarch 31, |     
|                                                                    |  | 2008                        |      | 2007 |  
|Revenues:                                                           |  |                             |      |      |   |       |  
|Equipment rentals                                                   |  | $                           | 571  |      | $ | 567   |  
|Sales of rental equipment                                           |  |                             | 66   |      |   | 82    |  
|New equipment sales                                                 |  |                             | 42   |      |   | 54    |  
|Contractor supplies sales                                           |  |                             | 56   |      |   | 94    |  
|Service and other revenues                                          |  |                             | 37   |      |   | 41    |  
|                                                                    |  |                             |      |      |   |       |  
|Total revenues                                                      |  |                             | 772  |      |   | 838   |  
|                                                                    |  |                             |      |      |   |       |  
|Cost of revenues:                                                   |  |                             |      |      |   |       |  
|Cost of equipment rentals, excluding depreciation                   |  |                             | 275  |      |   | 281   |  
|Depreciation of rental equipment                                    |  |                             | 107  |      |   | 102   |  
|Cost of rental equipment sales                                      |  |                             | 49   |      |   | 58    |  
|Cost of new equipment sales                                         |  |                             | 34   |      |   | 44    |  
|Cost of contractor supplies sales                                   |  |                             | 44   |      |   | 78    |  
|Cost of service and other revenues                                  |  |                             | 15   |      |   | 17    |  
|                                                                    |  |                             |      |      |   |       |  
|Total cost of revenues                                              |  |                             | 524  |      |   | 580   |  
|                                                                    |  |                             |      |      |   |       |  
|Gross profit                                                        |  |                             | 248  |      |   | 258   |  
|Selling, general and administrative expenses                        |  |                             | 131  |      |   | 147   |  
|Non-rental depreciation and amortization                            |  |                             | 15   |      |   | 12    |  
|                                                                    |  |                             |      |      |   |       |  
|Operating income                                                    |  |                             | 102  |      |   | 99    |  
|Interest expense, net                                               |  |                             | 41   |      |   | 47    |  
|Interest expensesubordinated convertible debentures                |  |                             | 2    |      |   | 2     |  
|                                                                    |  |                             |      |      |   |       |  
|Income from continuing operations before provision for income taxes |  |                             | 59   |      |   | 50    |  
|Provision for income taxes                                          |  |                             | 21   |      |   | 18    |  
|                                                                    |  |                             |      |      |   |       |  
|Income from continuing operations                                   |  |                             | 38   |      |   | 32    |  
|Loss from discontinued operation, net of taxes                      |  |                             |     |      |   | (2    | )
|                                                                    |  |                             |      |      |   |       |  
|Net income                                                          |  | $                           | 38   |      | $ | 30    |  
|                                                                    |  |                             |      |      |   |       |  
|Basic earnings available to common stockholders:                    |  |                             |      |      |   |       |  
|Income from continuing operations                                   |  | $                           | 0.37 |      | $ | 0.33  |  
|Loss from discontinued operation                                    |  |                             |     |      |   | (0.02 | )
|                                                                    |  |                             |      |      |   |       |  
|Net income                                                          |  | $                           | 0.37 |      | $ | 0.31  |  
|                                                                    |  |                             |      |      |   |       |  
|Diluted earnings available to common stockholders:                  |  |                             |      |      |   |       |  
|Income from continuing operations                                   |  | $                           | 0.34 |      | $ | 0.30  |  
|Loss from discontinued operation                                    |  |                             |     |      |   | (0.02 | )
|                                                                    |  |                             |      |      |   |       |  
|Net income                                                          |  | $                           | 0.34 |      | $ | 0.28  |  
|                                                                    |  |                             |      |      |   |       |  

See accompanying notes.



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UNITED RENTALS, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY (UNAUDITED)

(In millions)



|                                         |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   |       |                                     |  |   |     |  |   |     |   |  |   |     |  
|---------------------------------------- |  | ------------------------------------------ | - | ------------------------------------------ | - | ------------ |  | ------------------------ | -- |  | ---------------- | - | ------------------- | - | ----- | ----------------------------------- |  | - | --- |  | - | --- | - |  | - | --- | -
|                                         |  | Series CPerpetualConvertiblePreferredStock |   | Series DPerpetualConvertiblePreferredStock |   | Common Stock |  | AdditionalPaid-inCapital |    |  | RetainedEarnings |   | ComprehensiveIncome |   |       | AccumulatedOtherComprehensiveIncome | 
|                                         |  |                                            |   | Number ofShares                            |   | Amount       |  |                          |    | 
|Balance, December 31, 2007               |  | $                                          |  |                                            | $ |             |  | $                        | 86 |  | $                | 1 |                     | $ | 1,494 |                                     |  | $ | 431 |  |   |     |   |  | $ | 92  |  
|Comprehensive income:                    |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   |       |                                     |  |   |     |  |   |     |   |  |   |     |  
|Net income                               |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   |       |                                     |  |   | 38  |  | $ | 38  |   |  |   |     |  
|Other comprehensive income:              |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   |       |                                     |  |   |     |  |   |     |   |  |   |     |  
|Foreign currency translation adjustments |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   |       |                                     |  |   |     |  |   | (15 | ) |  |   | (15 | )
|                                         |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   |       |                                     |  |   |     |  |   |     |   |  |   |     |  
|Comprehensive income                     |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   |       |                                     |  |   |     |  | $ | 23  |   |  |   |     |  
|                                         |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   |       |                                     |  |   |     |  |   |     |   |  |   |     |  
|Stock compensation expense               |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   | 2     |                                     |  |   |     |  |   |     |   |  |   |     |  
|Forfeiture of stock compensation         |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   | (1    | )                                   |  |   |     |  |   |     |   |  |   |     |  
|                                         |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   |       |                                     |  |   |     |  |   |     |   |  |   |     |  
|Balance, March 31, 2008                  |  | $                                          |  |                                            | $ |             |  | $                        | 86 |  | $                | 1 |                     | $ | 1,495 |                                     |  | $ | 469 |  |   |     |   |  | $ | 77  |  
|                                         |  |                                            |   |                                            |   |              |  |                          |    |  |                  |   |                     |   |       |                                     |  |   |     |  |   |     |   |  |   |     |  

See accompanying notes.



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UNITED RENTALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In millions)



|                                                                                                         |  |                             |      |   |      |   |      |  
|-------------------------------------------------------------------------------------------------------- |  | --------------------------- | ---- | - | ---- | - | ---- | -
|                                                                                                         |  | Three Months EndedMarch 31, |     
|                                                                                                         |  | 2008                        |      |   | 2007 |  
|Cash Flows From Operating Activities:                                                                    |  |                             |      |   |      |   |      |  
|Income from continuing operations                                                                        |  | $                           | 38   |   |      | $ | 32   |  
|Adjustments to reconcile income from continuing operations to net cash provided by operating activities: |  |                             |      |   |      |   |      |  
|Depreciation and amortization                                                                            |  |                             | 124  |   |      |   | 117  |  
|Gain on sales of rental equipment                                                                        |  |                             | (17  | ) |      |   | (24  | )
|Gain on sales of non-rental equipment                                                                    |  |                             |     |   |      |   | (1   | )
|Non-cash adjustments to equipment                                                                        |  |                             | 2    |   |      |   | (2   | )
|Stock compensation expense                                                                               |  |                             | 1    |   |      |   | 4    |  
|Increase in deferred taxes                                                                               |  |                             | 18   |   |      |   | 8    |  
|Changes in operating assets and liabilities:                                                             |  |                             |      |   |      |   |      |  
|Decrease in accounts receivable                                                                          |  |                             | 65   |   |      |   | 3    |  
|Increase in inventory                                                                                    |  |                             | (4   | ) |      |   | (30  | )
|Decrease (increase) in prepaid expenses and other assets                                                 |  |                             | 2    |   |      |   | (16  | )
|Increase in accounts payable                                                                             |  |                             | 81   |   |      |   | 126  |  
|Decrease in accrued expenses and other liabilities                                                       |  |                             | (84  | ) |      |   | (90  | )
|                                                                                                         |  |                             |      |   |      |   |      |  
|Net cash provided by operating activitiescontinuing operations                                          |  |                             | 226  |   |      |   | 127  |  
|Net cash provided by operating activitiesdiscontinued operation                                         |  |                             |     |   |      |   | 6    |  
|                                                                                                         |  |                             |      |   |      |   |      |  
|Net cash provided by operating activities                                                                |  |                             | 226  |   |      |   | 133  |  
|Cash Flows From Investing Activities:                                                                    |  |                             |      |   |      |   |      |  
|Purchases of rental equipment                                                                            |  |                             | (136 | ) |      |   | (265 | )
|Purchases of non-rental equipment                                                                        |  |                             | (15  | ) |      |   | (31  | )
|Proceeds from sales of rental equipment                                                                  |  |                             | 66   |   |      |   | 82   |  
|Proceeds from sales of non-rental equipment                                                              |  |                             | 2    |   |      |   | 2    |  
|Purchases of other companies                                                                             |  |                             |     |   |      |   | (21  | )
|                                                                                                         |  |                             |      |   |      |   |      |  
|Net cash used in investing activitiescontinuing operations                                              |  |                             | (83  | ) |      |   | (233 | )
|Net cash provided by investing activitiesdiscontinued operation                                         |  |                             |     |   |      |   | 69   |  
|                                                                                                         |  |                             |      |   |      |   |      |  
|Net cash used in investing activities                                                                    |  |                             | (83  | ) |      |   | (164 | )
|Cash Flows From Financing Activities:                                                                    |  |                             |      |   |      |   |      |  
|Proceeds from debt                                                                                       |  |                             |     |   |      |   | 41   |  
|Payments of debt                                                                                         |  |                             | (7   | ) |      |   | (32  | )
|Proceeds from the exercise of common stock options                                                       |  |                             |     |   |      |   | 4    |  
|Shares repurchased and retired                                                                           |  |                             |     |   |      |   | (1   | )
|Excess tax benefits from share-based payment arrangements                                                |  |                             |     |   |      |   | 2    |  
|                                                                                                         |  |                             |      |   |      |   |      |  
|Net cash (used in) provided by financing activities                                                      |  |                             | (7   | ) |      |   | 14   |  
|Effect of foreign exchange rates                                                                         |  |                             | (2   | ) |      |   | 2    |  
|                                                                                                         |  |                             |      |   |      |   |      |  
|Net increase (decrease) in cash and cash equivalents                                                     |  |                             | 134  |   |      |   | (15  | )
|Cash and cash equivalents at beginning of period                                                         |  |                             | 381  |   |      |   | 119  |  
|                                                                                                         |  |                             |      |   |      |   |      |  
|Cash and cash equivalents at end of period                                                               |  | $                           | 515  |   |      | $ | 104  |  
|                                                                                                         |  |                             |      |   |      |   |      |  

See accompanying notes.



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UNITED RENTALS, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions, except per share data unless otherwise indicated)



|1. | Organization and Basis of Presentation
|-- | --------------------------------------

General

United Rentals, Inc. (Holdings, United Rentals or the Company) is principally a holding company and conducts its
operations primarily through its wholly owned subsidiary, United Rentals (North America), Inc. (URNA), and subsidiaries of URNA. Holdings primary asset is its sole ownership of all issued and outstanding shares of common stock of
URNA. URNAs various credit agreements and debt instruments place restrictions on its ability to transfer funds to its shareholder.

We rent equipment to a diverse customer base that includes construction and industrial companies, manufacturers, utilities, municipalities, homeowners and others in the United States, Canada and Mexico. In addition to renting equipment, we
sell new and used rental equipment, as well as related contractor supplies, parts and service.

We have prepared the accompanying unaudited
condensed consolidated interim financial statements in accordance with the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2007 (the 2007 Form 10-K) and the interim reporting
requirements of Form 10-Q. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted.
These condensed consolidated financial statements should be read in conjunction with the 2007 Form 10-K. Certain reclassifications have been made to prior year financial information to conform to the current year presentation.

In our opinion, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of financial position,
operating results and cash flows for the interim periods presented have been made. Interim results of operations are not necessarily indicative of the results of the full year.

New Accounting Pronouncements

In September 2006, the FASB issued Statement 157, Fair Value
Measurement (Statement 157). Statement 157 defines fair value, establishes a framework for measuring fair value in GAAP and establishes a hierarchy that categorizes and prioritizes the sources to be used to estimate fair
value. Statement 157 also expands financial statement disclosures about fair value measurements. On February 12, 2008, the FASB issued FASB Staff Position (FSP) 157-2 which delays the effective date of Statement 157 for
one year for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Statement 157 and FSP 157-2 are effective for
financial statements issued for fiscal years beginning after November 15, 2007. We have elected a partial deferral of Statement 157 under the provisions of FSP 157-2 related to the measurement of fair value used when evaluating goodwill,
other intangible assets and other long-lived assets for impairment and valuing asset retirement obligations and liabilities for exit or disposal activities. The partial adoption of Statement 157 on January 1, 2008 did not have a material
impact on our condensed consolidated financial statements.



|2. | Segment Information
|-- | -------------------

Our reportable segments are
general rentals and trench safety, pump and power. The general rentals segment includes the rental of construction, aerial, industrial and homeowner equipment and related services and activities. The general rentals segments customers include
construction and industrial companies, manufacturers, utilities, municipalities and homeowners. The general rentals segment operates throughout the United States and Canada and has one location in Mexico. The trench safety, pump and power segment
includes the rental of specialty construction products and related services. The trench safety, pump and power segments customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This
segment operates in the United States and has one location in Canada. These segments align our external segment reporting with how management evaluates and allocates resources. We evaluate segment performance based on segment operating results.



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Operating segment revenues and profitability for the three months ended March 31, 2008 and 2007 were
as follows:



|                                                               |  |                             |     |      |   |    
|-------------------------------------------------------------- |  | --------------------------- | --- | ---- | - | ---
|                                                               |  | Three Months EndedMarch 31,
|                                                               |  | 2008                        |     | 2007
|Total reportable segment revenues                              |  |                             |     |      |   |    
|General rentals                                                |  | $                           | 727 |      | $ | 789
|Trench safety, pump and power                                  |  |                             | 45  |      |   | 49 
|                                                               |  |                             |     |      |   |    
|Total revenues                                                 |  | $                           | 772 |      | $ | 838
|                                                               |  |                             |     |      |   |    
|Total reportable segment depreciation and amortization expense |  |                             |     |      |   |    
|General rentals                                                |  | $                           | 116 |      | $ | 108
|Trench safety, pump and power                                  |  |                             | 6   |      |   | 6  
|                                                               |  |                             |     |      |   |    
|Total depreciation and amortization expense                    |  | $                           | 122 |      | $ | 114
|                                                               |  |                             |     |      |   |    
|Reportable segment operating income                            |  |                             |     |      |   |    
|General rentals                                                |  | $                           | 93  |      | $ | 89 
|Trench safety, pump and power                                  |  |                             | 9   |      |   | 10 
|                                                               |  |                             |     |      |   |    
|Segment operating income                                       |  | $                           | 102 |      | $ | 99 
|                                                               |  |                             |     |      |   |    
|Total reportable segment capital expenditures                  |  |                             |     |      |   |    
|General rentals                                                |  | $                           | 149 |      | $ | 290
|Trench safety, pump and power                                  |  |                             | 2   |      |   | 6  
|                                                               |  |                             |     |      |   |    
|Total capital expenditures                                     |  | $                           | 151 |      | $ | 296
|                                                               |  |                             |     |      |   |    



|                              |  |               |       |               |   |                  |  |   |      
|----------------------------- |  | ------------- | ----- | ------------- | - | ---------------- |  | - | -----
|                              |  | March 31,2008 |       | March 31,2007 |   | December 31,2007
|Total assets                  |  |               |       |               |   |                  |  |   |      
|General rentals               |  | $             | 5,726 |               | $ | 5,261            |  | $ | 5,688
|Trench safety, pump and power |  |               | 146   |               |   | 149              |  |   | 154  
|                              |  |               |       |               |   |                  |  |   |      
|Total assets                  |  | $             | 5,872 |               | $ | 5,410            |  | $ | 5,842
|                              |  |               |       |               |   |                  |  |   |      



|3. | Income Taxes
|-- | ------------

We adopted the provisions of FIN 48
on January 1, 2007. We did not record any unrecognized income tax benefits as a result of the implementation of FIN 48. As of January 1 and December 31, 2007, we had $6 of unrecognized tax benefits, all of which would impact our
effective tax rate if recognized. For the three months ended March 31, 2008, there was no change to our unrecognized tax benefits. We include interest accrued on the underpayment of income taxes in interest expense and penalties, if any,
related to unrecognized tax benefits in selling, general and administrative expense. For the three months ended March 31, 2008, interest expense of less than $1 related to income tax was reflected in our condensed consolidated statement of
income.

We file income tax returns in the U.S. and in several foreign jurisdictions. With few exceptions, we have completed our domestic
and international income tax examinations, or the statute of limitations has expired in the respective jurisdictions, for years prior to 2004. The Internal Revenue Service has completed audits for periods prior to 2006; Canadian authorities have
concluded income tax audits for periods prior to 2006, and the Company has agreed to the findings, however, 2003 through 2005 remain open to transfer pricing audit adjustments. Included in the balance of unrecognized tax benefits at
December 31, 2007 are certain tax positions for which it is reasonably possible that the total amounts of the unrecognized tax benefits for those tax positions could significantly change during the next twelve months. However, based on the
status of the ongoing audit examinations and alternative options available to the Company for certain of these tax positions, which could include legal proceedings, it is not possible to estimate the amount of the change, if any, to the previously
recorded uncertain tax positions.



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|4. | Goodwill and Other Intangible Assets
|-- | ------------------------------------

The carrying
amount of our goodwill was $1,353, $1,343 and $1,358 at March 31, 2008, March 31, 2007 and December 31, 2007, respectively. We are required to review our goodwill for impairment annually as of a scheduled review date. However, if
events or circumstances suggest that goodwill could be impaired, we may be required to conduct an earlier review. The scheduled review date is October 1 of each year.

Other intangible assets consist of customer relationships and non-compete agreements and are amortized over periods ranging from one to 12 years.
Amortization expense for other intangible assets was $2 and $1 for the three months ended March 31, 2008 and 2007, respectively. The cost of other intangible assets and related accumulated amortization as of March 31, 2008 was as follows:



|                         |  |               |     |  
|------------------------ |  | ------------- | --- | -
|                         |  | March 31,2008 |    
|Gross carrying amount    |  | $             | 81  |  
|Accumulated amortization |  |               | (38 | )
|                         |  |               |     |  
|Net amount               |  | $             | 43  |  
|                         |  |               |     |  



|5. | Legal and Regulatory Matters
|-- | ----------------------------

SEC Non-Public Fact Finding
Inquiry and Special Committee Review

In August 2004, we received a letter from the SEC in which the SEC referred to an inquiry of the
Company. The letter transmitted a subpoena requesting certain of our documents. The letter and the subpoena referred to an SEC investigation entitled In the Matter of United Rentals, Inc. The notice from the SEC stated that the inquiry did
not mean that the SEC had concluded that the Company or anyone else had broken the law or that the SEC had a negative opinion of any person, entity or security. The inquiry appeared to relate to a broad range of our accounting practices and was not
confined to a specific period.

In March 2005, our board of directors formed the Special Committee to review matters related to the SEC
inquiry. The Special Committee retained independent counsel. The board of directors received and acted upon findings of the Special Committee in January 2006. The actions that we took with respect to the Special Committees findings and actions
that we took with respect to certain other accounting matters, including the restatement of previously issued consolidated financial statements for 2003 and 2002, are discussed in our Annual Report on Form 10-K for the year ended December 31,
2005 (the 2005 Form 10-K). We have provided documents in response to SEC subpoenas and informal requests as well as to the Special Committee, which has, in turn, provided documents to the SEC.

As previously reported, the Special Committees findings included, among others, that there were irregularities with respect to certain minor
sale-leaseback transactions and trade packages to which the Company was a party between 2000 and 2002. The Company restated its results for the years ended December 31, 2002 and December 31, 2003, and its originally reported retained
earnings at December 31, 2001, to correct the accounting for the minor sale-leaseback transactions and provided supplemental disclosure in the 2005 10-K regarding the trade packages (with respect to which documentation sufficient to permit a
restatement did not exist). The Special Committee concluded that, based on the evidence it reviewed, the practices regarding these minor sale-leaseback transactions and trade packages appeared to have been directed by the Companys two former
chief financial officers. In December 2007, one of the former chief financial officers, who left the Company in late 2002, pled guilty to making a false filing with the SEC in connection with the Companys annual report on form 10-K for the
year ended December 31, 2000 and settled a separate civil enforcement action brought against him by the SEC alleging various violations of the securities laws. In April 2008, the other former chief financial officer, who was terminated in
August 2005 after he failed to cooperate with the Special Committees inquiry, was indicted and pled not guilty to conspiracy, securities fraud, insider trading and making false filings with the SEC in connection with the Companys annual
reports on form 10-K for the years ended December 31, 2001, December 31, 2002 and December 31, 2003. The SEC has also brought a separate civil enforcement action against him alleging various violations of the securities laws.

In July 2007, we received a letter from the staff of the SEC stating that the staff intended to recommend that the Commission authorize
the staff to file an injunctive action against the Company for alleged violations of provisions relating to the maintenance of books and records, internal accounting controls, and periodic filing requirements, as well as antifraud provisions, as set
forth in Section 17(a) of the Securities Act of 1933, as amended (the Securities Act), Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934, as amended (the Exchange Act) and Rules



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10b- 5, 12b-20, 13a-1, 13a-11, 13a-13 and 13b2-1 thereunder. The letter states that the relief the staff may recommend includes permanent injunctions and
civil penalties. Under SEC procedures, we have the opportunity to respond to the SEC staff before the staff makes a formal recommendation as to whether any action should be brought by the SEC. The staffs letter also states that the staff
intends to request authorization to engage in settlement discussions with the Company. We intend to continue cooperating fully with the SEC in this matter.

The U.S. Attorneys Office for the District of Connecticut has also requested information from the Company informally and by subpoena about matters related to the SEC inquiry. We are also cooperating fully with
this office.

We cannot predict the outcome of these inquiries as to the Company or when these matters might be resolved.

Shareholder Class Action Lawsuits and Derivative Litigation

Following our public announcement of the SEC inquiry, three purported class action lawsuits were filed against the Company in the United States District Court for the District of Connecticut. The plaintiff in each of the lawsuits initially
sought to sue on behalf of a purported class comprised of purchasers of our securities from October 23, 2003 to August 30, 2004. The lawsuits initially named as the defendants the Company, our former chairman, our vice chairman and then
chief executive officer, our former president and chief financial officer, and our former corporate controller. These initial complaints alleged, among other things, that certain of our SEC filings and other public statements contained false and
misleading statements which resulted in damages to the plaintiffs and the members of the purported class when they purchased our securities. On the basis of those allegations, plaintiffs in each action asserted claims (a) against all defendants
under Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and (b) against one or more of the individual defendants under Section 20(a) of the Exchange Act. The complaints sought unspecified compensatory damages, costs and
expenses. On February 1, 2005, the Court entered an order consolidating the three actions. On November 8, 2005, the Court appointed City of Pontiac Policemans and Firemans Retirement System as lead plaintiff for the purported
class. The consolidated action is now entitled In re United Rentals, Inc. Securities Litigation.

On June 5, 2006, pursuant to
a schedule agreed to by the parties and approved by the Court, lead plaintiff filed a consolidated amended complaint, which (a) added allegations relating to, among other things, the conclusions of the Special Committee and other matters
disclosed in the 2005 Form 10-K, (b) amended the purported class period to include purchasers of our securities from February 28, 2001 to August 30, 2004 and (c) named as an additional defendant our first chief financial officer.
In September 2006, we and certain of the individual defendants moved to dismiss the consolidated amended complaint in this action. Briefing with respect to these motions is now complete.

On March 10, 2008, we announced that we had entered into a memorandum of understanding with lead plaintiffs counsel to settle this action. The
memorandum of understanding provides that the claims of the plaintiff class will be settled for a cash payment of $27.5. The contemplated settlement is subject to the prior satisfaction of a number of conditions, including definitive settlement
documentation and court approval. In addition, the settlement is contingent upon the Company and its insurance carriers finalizing agreements on the portion of the settlement to be funded by the carriers, as well as the amounts that the carriers
will reimburse the Company for defense costs concerning the shareholder actions and related inquiries and matters that have previously been expensed by the Company. We cannot predict whether these conditions will be satisfied. The Company currently
expects, taking into account anticipated settlement funding and defense cost reimbursements from its insurance carriers, that the contemplated settlement will not have a material effect on its results of operations or cash flows for any period.

In January 2005, an alleged shareholder filed an action in Connecticut State Superior Court, Judicial District of Norwalk/Stamford at
Stamford, purportedly suing derivatively on the Companys behalf. The action, entitled Gregory Riegel v. John N. Milne, et al., named as defendants certain of our current and/or former directors and/or officers, and named the Company as
a nominal defendant. The complaint asserted, among other things, that the defendants breached their fiduciary duties to the Company by causing or allowing the Company to disseminate misleading and inaccurate information to shareholders and the
market and by failing to establish and maintain adequate accounting controls, thus exposing the Company to damages. The complaint seeks unspecified compensatory damages, costs and expenses against the defendants. The parties to the Riegel
action have agreed that the proceedings in this action will be stayed pending the resolution of the motions to dismiss in the purported shareholder class actions.

In November 2004 we received a letter from counsel for an alleged shareholder, raising allegations similar to the ones set forth in the derivative complaint described above and demanding that the Company take action
in response to those allegations against certain of our current and/or former directors and/or officers. Following receipt of the letter, our board of directors formed a special committee to consider the letter. In August 2005, this alleged
shareholder commenced an action in Connecticut State Superior Court, Judicial District of Norwalk/Stamford at Stamford, purporting to sue derivatively on the Companys behalf. The action, entitled Nathan Brundridge v. Leon D. Black, et
al., initially named as defendants certain of



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our current and/or former directors and/or officers, and named the Company as a nominal defendant. The initial complaint in this action asserted, among other
things, that all of the defendants breached fiduciary obligations to the Company by causing or allowing the Company to disseminate misleading and inaccurate information to shareholders and the market, and by failing to establish and maintain
adequate accounting controls, thus exposing the Company to damages. The initial complaint in this action also asserted a claim for unjust enrichment against our former chairman and our vice chairman and then chief executive officer. The initial
complaint sought unspecified compensatory damages, equitable relief, costs and expenses against all of the defendants. The initial complaint also sought an order, in connection with plaintiffs unjust enrichment claim, directing the defendants
against whom that claim was asserted to disgorge certain compensation they received from us with respect to fiscal years 2001, 2002 and 2003.

On June 5, 2006, pursuant to a schedule agreed to by the parties, plaintiff in the Brundridge action filed an amended complaint that (a) added allegations relating to, among other things, the conclusions of the Special
Committee and other matters disclosed in the 2005 Form 10-K, and (b) named as an additional defendant our former president and chief financial officer and asserted the same claims against him as it previously asserted and continued to assert
against our former chairman and our vice chairman and then chief executive officer. In September 2006, we and certain of the individual defendants moved to dismiss the amended complaint in this action. In December 2006, plaintiff in this action
filed its opposition to these motions to dismiss. Subsequently, the parties agreed that the proceedings in this action will be stayed pending resolution of the motions to dismiss in the purported shareholder class actions. The parties
agreement provides that any party may terminate the stay at any time on 30 days written notice to the Court and all other parties, and defendants will have an opportunity to submit reply papers in further support of their motions to dismiss
this action after the termination of the stay.

In August 2005, another alleged shareholder filed an action in the United States District
Court for the District of Connecticut, purporting to sue derivatively on the Companys behalf. The action, entitled Natalie Gordon v. Wayland R. Hicks, et al., named as defendants certain of our current and/or former directors and/or
officers, and named the Company as a nominal defendant. The initial complaint in this action asserted claims against each of the defendants for breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets and unjust
enrichment. Each of these claims is premised on, among other things, the theory that the individual defendants caused or permitted the Company to disseminate misleading and inaccurate information to shareholders and to the market, and failed to
establish and maintain adequate accounting controls, thus exposing the Company to damages. The initial complaint also asserted (a) a claim that a former director breached fiduciary obligations by selling shares of our common stock while in
possession of material, non-public information, and (b) a claim against our former chairman, our vice chairman and then chief executive officer, and our former president and chief financial officer for recovery of certain incentive-based
compensation under section 304 of the Sarbanes-Oxley Act (SOX 304). The initial complaint sought unspecified compensatory damages, equitable relief, restitution, costs and expenses against all of the defendants. The initial complaint
also sought an order declaring that the defendants against whom the SOX 304 claim was directed are liable under the Sarbanes-Oxley Act and directing them to reimburse us for all bonuses or other incentive-based or equity-based compensation they
received for the fiscal years 1999 through 2004.

On June 5, 2006, pursuant to a schedule agreed to by the parties and approved by the
Court, plaintiff in the Gordon action filed an amended complaint, which (a) added allegations relating to, among other things, the conclusions of the Special Committee and other matters disclosed in the 2005 Form 10-K, and (b) named
as additional defendants certain other of our current and/or former directors and/or officers. The amended complaint also asserted an additional claim against certain of our current and/or former directors for violation of Section 14(a) of the
Exchange Act. In September 2006, we and certain of the individual defendants moved to dismiss the amended complaint in this action. Briefing with respect to these motions is now complete.

On April 25, 2008, plaintiff in the Gordon action filed a notice to voluntarily dismiss the action, without prejudice, on the consent of
defendants, because she sold her Company securities and, therefore, would not likely have standing to pursue derivative claims on the Companys behalf.

Following our July 23, 2007 announcement of the merger agreement with affiliates of Cerberus, two lawsuits against the proposed acquisition were filed. First, a putative class action complaint, entitledDonald
Lefari v. United Rentals, Inc. et al., was filed in Connecticut State Superior Court, Judicial District of Stamford-Norwalk, on July 23, 2007 (the Lefari action). This lawsuit purports to be brought on behalf of all
common stockholders of the Company, names the Company and all of our directors and Cerberus as defendants, and sought to enjoin the proposed acquisition of the Company by affiliates of Cerberus. On September 19, 2007, the parties to theLefari action entered into a memorandum of understanding to settle the action and a settlement agreement was expected to be negotiated by the parties. On September 28, 2007, the second lawsuit,Nathan Brundridge vs. Wayland R. Hicks et
al., was also filed in Connecticut State Superior Court, Judicial District of Stamford-Norwalk (the Brundridge II action). This lawsuit named our current directors as defendants. On December 23, 2007, the Company
terminated the merger agreement with affiliates of Cerberus. As a result, a condition precedent of the proposed settlement of the Lefari action, the consummation of the proposed acquisition, was not fulfilled. The Brundridge IIaction
was voluntarily withdrawn as to all defendants on January 30, 2008. On February 7, 2008, the parties to the Lefari action filed a joint motion to withdraw with prejudice the Lefari action, which is subject to the approval of
the court.



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Following our November 14, 2007 announcement that affiliates of Cerberus had notified us that they
were not prepared to proceed with the purchase of the Company on the terms set forth in the merger agreement, three putative class action lawsuits were filed against the Company in the United States District Court for the District of Connecticut.
The plaintiff in each of the lawsuits sought to sue on behalf of a purported class of persons who purchased or otherwise acquired our securities between August 29, 2007 and November 14, 2007. The lawsuits named as defendants the Company,
our directors and certain of our officers and alleged, among other things, that the named plaintiff and members of the purported class suffered damages when they purchased or otherwise acquired securities issued by the Company, as a result of false
and misleading statements and/or material omissions relating to the contemplated merger with affiliates of Cerberus, contained in (a) proxy materials that the Company disseminated and/or filed with the SEC in anticipation of the
October 19, 2007 special meeting of stockholders; and/or (b) certain of the Companys filings with the SEC and other public statements. On the basis of those allegations, plaintiff in each action asserted claims under Sections 10(b)
and 14(a) of the Exchange Act and Rules 10b-5 and 14a-9 thereunder; and against the individual defendants under Section 20(a) of the Exchange Act. The complaints in these actions sought unspecified compensatory damages, costs, expenses and
fees. On February 7, 2008, the Court entered an order consolidating the three actions and appointing the Institutional Investor Group, consisting of First New York Securities, L.L.C. and Omni Partners LLP, as lead plaintiff for the purported
class. The actions are now consolidated under the caption Vincent DeCicco v. United Rentals, Inc., et al.

On March 24, 2008,
pursuant to a schedule approved by the Court, lead plaintiffs filed a consolidated amended complaint, which, among other things, (a) amended the purported class period to include purchasers of our publicly traded securities from July 23,
2007 to November 14, 2007, (b) dropped as defendants one of our officers and all but one of our directors, (c) named as additional defendants Cerberus, certain of its affiliates, its chief executive officer and one of its managing
directors, and (d) withdrew the previously asserted claim under Section 14(a) of the Exchange Act and Rule 14a-9 thereunder. We intend to defend against this action vigorously.

We are also subject to a number of claims and proceedings that generally arise in the ordinary conduct of our business. These matters include, but are
not limited to, general liability claims (including personal injury, product liability, and property and auto claims), indemnification and guarantee obligations, employee injuries and employment-related claims, self-insurance obligations and
contract and real estate matters. Based on advice of counsel and available information, including current status or stage of proceeding, and taking into account accruals for matters where we have established them, we currently believe that any
liabilities ultimately resulting from these ordinary course claims and proceedings will not, individually or in the aggregate, have a material adverse effect on our consolidated financial position, results of operations or cash flows.



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|6. | Earnings Per Share
|-- | ------------------

Basic earnings per share is
computed by dividing net income by the weighted-average number of common shares outstanding and, if dilutive, the Series C and Series D preferred shares as if converted to common shares since such shares are participating securities. Diluted
earnings per share includes the impact of other diluted securities. The following table sets forth the computation of basic and diluted earnings per share (shares in thousands):



|                                                                             |  |                             |         |      |   |         |  
|---------------------------------------------------------------------------- |  | --------------------------- | ------- | ---- | - | ------- | -
|                                                                             |  | Three Months EndedMarch 31, |        
|                                                                             |  | 2008                        |         | 2007 |  
|Numerator:                                                                   |  |                             |         |      |   |         |  
|Income from continuing operations                                            |  | $                           | 38      |      | $ | 32      |  
|Loss from discontinued operation, net of taxes                               |  |                             |        |      |   | (2      | )
|                                                                             |  |                             |         |      |   |         |  
|Net income                                                                   |  |                             | 38      |      |   | 30      |  
|Convertible debt interest                                                    |  |                             |        |      |   | 1       |  
|                                                                             |  |                             |         |      |   |         |  
|Net income available to common stockholders:                                 |  | $                           | 38      |      | $ | 31      |  
|                                                                             |  |                             |         |      |   |         |  
|Denominator:                                                                 |  |                             |         |      |   |         |  
|Weighted-average common shares                                               |  |                             | 86,332  |      |   | 81,253  |  
|Series C preferred                                                           |  |                             | 12,000  |      |   | 12,000  |  
|Series D preferred                                                           |  |                             | 5,000   |      |   | 5,000   |  
|                                                                             |  |                             |         |      |   |         |  
|Denominator for basic earnings per shareweighted-average                    |  |                             | 103,332 |      |   | 98,253  |  
|Effect of dilutive securities:                                               |  |                             |         |      |   |         |  
|Employee stock options and warrants                                          |  |                             | 575     |      |   | 5,030   |  
|Convertible shares                                                           |  |                             | 6,461   |      |   | 6,461   |  
|Restricted stock units and other                                             |  |                             | 397     |      |   | 457     |  
|                                                                             |  |                             |         |      |   |         |  
|Denominator for dilutive earnings per shareadjusted weighted-average shares |  |                             | 110,765 |      |   | 110,201 |  
|                                                                             |  |                             |         |      |   |         |  
|Basic earnings available to common stockholders:                             |  |                             |         |      |   |         |  
|Income from continuing operations                                            |  | $                           | 0.37    |      | $ | 0.33    |  
|Loss from discontinued operation                                             |  |                             |        |      |   | (0.02   | )
|                                                                             |  |                             |         |      |   |         |  
|Net income                                                                   |  | $                           | 0.37    |      | $ | 0.31    |  
|                                                                             |  |                             |         |      |   |         |  
|Diluted earnings available to common stockholders:                           |  |                             |         |      |   |         |  
|Income from continuing operations                                            |  | $                           | 0.34    |      | $ | 0.30    |  
|Loss from discontinued operation                                             |  |                             |        |      |   | (0.02   | )
|                                                                             |  |                             |         |      |   |         |  
|Net income                                                                   |  | $                           | 0.34    |      | $ | 0.28    |  
|                                                                             |  |                             |         |      |   |         |  



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|7. | Condensed Consolidating Financial Information of Guarantor Subsidiaries
|-- | -----------------------------------------------------------------------

URNA is 100 percent owned by Holdings (the Parent) and has outstanding (i) certain indebtedness that is guaranteed by the Parent and (ii) certain indebtedness that is guaranteed by both Parent
and substantially all of URNAs United States subsidiaries (the guarantor subsidiaries). However, this indebtedness is not guaranteed by URNAs foreign subsidiaries and certain of its United States subsidiaries (the
non-guarantor subsidiaries). The guarantor subsidiaries are all 100 percent-owned and the guarantees are made on a joint and several basis and are full and unconditional (subject to subordination provisions and subject to a standard
limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws). Separate consolidated financial statements
of the guarantor subsidiaries have not been presented because management believes that such information would not be material to investors; however, condensed consolidating financial information is presented. The condensed consolidating financial
information of the Company and its subsidiaries is as follows:

CONDENSED CONSOLIDATING BALANCE SHEETS

March 31, 2008



|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|----------------------------------------- |  | ------ | ----- | ---- | - | ----- | --------------------- |  | - | ------------------------- | - |  | --------------------- | ---- | - | ----- | - | ------ | - |  | - | -----
|                                          |  | Parent |       | URNA |   |       | GuarantorSubsidiaries |  |   | Non-GuarantorSubsidiaries |   |  | Other andEliminations |      |   | Total
|ASSETS                                    |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Cash and cash equivalents                 |  | $      |      |      | $ | 455   |                       |  | $ | 4                         |   |  | $                     | 56   |   |       | $ |       |   |  | $ | 515  
|Accounts receivable, net                  |  |        |      |      |   | (9    | )                     |  |   | 7                         |   |  |                       | 454  |   |       |   |       |   |  |   | 452  
|Intercompany receivable (payable)         |  |        |      |      |   | (5    | )                     |  |   | 129                       |   |  |                       | (124 | ) |       |   |       |   |  |   |     
|Inventory                                 |  |        |      |      |   | 36    |                       |  |   | 44                        |   |  |                       | 15   |   |       |   |       |   |  |   | 95   
|Prepaid expenses and other assets         |  |        |      |      |   | 9     |                       |  |   | 42                        |   |  |                       | 3    |   |       |   |       |   |  |   | 54   
|Deferred taxes                            |  |        |      |      |   | 74    |                       |  |   |                          |   |  |                       |     |   |       |   |       |   |  |   | 74   
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total current assets                      |  |        |      |      |   | 560   |                       |  |   | 226                       |   |  |                       | 404  |   |       |   |       |   |  |   | 1,190
|Rental equipment, net                     |  |        |      |      |   | 1,472 |                       |  |   | 1,017                     |   |  |                       | 307  |   |       |   |       |   |  |   | 2,796
|Property and equipment, net               |  |        | 49    |      |   | 207   |                       |  |   | 155                       |   |  |                       | 29   |   |       |   |       |   |  |   | 440  
|Investments in subsidiaries               |  |        | 2,133 |      |   | 2,925 |                       |  |   |                          |   |  |                       |     |   |       |   | (5,058 | ) |  |   |     
|Goodwill and other intangible assets, net |  |        |      |      |   | 183   |                       |  |   | 1,064                     |   |  |                       | 149  |   |       |   |       |   |  |   | 1,396
|Other long-term assets                    |  |        | 6     |      |   | 39    |                       |  |   | 5                         |   |  |                       |     |   |       |   |       |   |  |   | 50   
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total assets                              |  | $      | 2,188 |      | $ | 5,386 |                       |  | $ | 2,467                     |   |  | $                     | 889  |   |       | $ | (5,058 | ) |  | $ | 5,872
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|LIABILITIES AND STOCKHOLDERS EQUITY      |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Current maturities of long-term debt      |  | $      |      |      | $ | 22    |                       |  | $ |                          |   |  | $                     | 135  |   |       | $ |       |   |  | $ | 157  
|Accounts payable                          |  |        |      |      |   | 118   |                       |  |   | 125                       |   |  |                       | 32   |   |       |   |       |   |  |   | 275  
|Accrued expenses and other liabilities    |  |        |      |      |   | 261   |                       |  |   | 24                        |   |  |                       | 13   |   |       |   | (82    | ) |  |   | 216  
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total current liabilities                 |  |        |      |      |   | 401   |                       |  |   | 149                       |   |  |                       | 180  |   |       |   | (82    | ) |  |   | 648  
|Long-term debt                            |  |        |      |      |   | 2,399 |                       |  |   | 14                        |   |  |                       |     |   |       |   |       |   |  |   | 2,413
|Subordinated convertible debentures       |  |        | 146   |      |   |      |                       |  |   |                          |   |  |                       |     |   |       |   |       |   |  |   | 146  
|Deferred taxes                            |  |        |      |      |   | 535   |                       |  |   | (9                        | ) |  |                       | 33   |   |       |   |       |   |  |   | 559  
|Other long-term liabilities               |  |        |      |      |   |      |                       |  |   | 64                        |   |  |                       |     |   |       |   |       |   |  |   | 64   
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total liabilities                         |  |        | 146   |      |   | 3,335 |                       |  |   | 218                       |   |  |                       | 213  |   |       |   | (82    | ) |  |   | 3,830
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total stockholders equity                |  |        | 2,042 |      |   | 2,051 |                       |  |   | 2,249                     |   |  |                       | 676  |   |       |   | (4,976 | ) |  |   | 2,042
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total liabilities and equity              |  | $      | 2,188 |      | $ | 5,386 |                       |  | $ | 2,467                     |   |  | $                     | 889  |   |       | $ | (5,058 | ) |  | $ | 5,872
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      



15



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CONDENSED CONSOLIDATING BALANCE SHEETS

March 31, 2007



|                                          |  |        |       |      |   |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|----------------------------------------- |  | ------ | ----- | ---- | - | --------------------- |  | - | ------------------------- | - |  | --------------------- | ---- | - | ----- | - | ------ | - |  | - | -----
|                                          |  | Parent |       | URNA |   | GuarantorSubsidiaries |  |   | Non-GuarantorSubsidiaries |   |  | Other andEliminations |      |   | Total
|ASSETS                                    |  |        |       |      |   |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Cash and cash equivalents                 |  | $      |      |      | $ | 2                     |  | $ | 21                        |   |  | $                     | 81   |   |       | $ |       |   |  | $ | 104  
|Accounts receivable, net                  |  |        |      |      |   | 6                     |  |   | (21                       | ) |  |                       | 515  |   |       |   |       |   |  |   | 500  
|Intercompany receivable (payable)         |  |        |      |      |   | 12                    |  |   | 176                       |   |  |                       | (188 | ) |       |   |       |   |  |   |     
|Inventory                                 |  |        |      |      |   | 83                    |  |   | 67                        |   |  |                       | 19   |   |       |   |       |   |  |   | 169  
|Prepaid expenses and other assets         |  |        |      |      |   | 11                    |  |   | 56                        |   |  |                       | 3    |   |       |   |       |   |  |   | 70   
|Deferred taxes                            |  |        |      |      |   | 51                    |  |   |                          |   |  |                       |     |   |       |   |       |   |  |   | 51   
|                                          |  |        |       |      |   |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total current assets                      |  |        |      |      |   | 165                   |  |   | 299                       |   |  |                       | 430  |   |       |   |       |   |  |   | 894  
|Rental equipment, net                     |  |        |      |      |   | 1,481                 |  |   | 950                       |   |  |                       | 257  |   |       |   |       |   |  |   | 2,688
|Property and equipment, net               |  |        | 42    |      |   | 115                   |  |   | 194                       |   |  |                       | 30   |   |       |   |       |   |  |   | 381  
|Investments in subsidiaries               |  |        | 1,678 |      |   | 2,733                 |  |   |                          |   |  |                       |     |   |       |   | (4,411 | ) |  |   |     
|Goodwill and other intangible assets, net |  |        |      |      |   | 185                   |  |   | 1,065                     |   |  |                       | 135  |   |       |   |       |   |  |   | 1,385
|Other long-term assets                    |  |        | 7     |      |   | 50                    |  |   | 5                         |   |  |                       |     |   |       |   |       |   |  |   | 62   
|                                          |  |        |       |      |   |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total assets                              |  | $      | 1,727 |      | $ | 4,729                 |  | $ | 2,513                     |   |  | $                     | 852  |   |       | $ | (4,411 | ) |  | $ | 5,410
|                                          |  |        |       |      |   |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|LIABILITIES AND STOCKHOLDERS EQUITY      |  |        |       |      |   |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Current maturities of long-term debt      |  | $      |      |      | $ | 61                    |  | $ |                          |   |  | $                     |     |   |       | $ |       |   |  | $ | 61   
|Accounts payable                          |  |        |      |      |   | 102                   |  |   | 201                       |   |  |                       | 41   |   |       |   |       |   |  |   | 344  
|Accrued expenses and other liabilities    |  |        |      |      |   | 177                   |  |   | 116                       |   |  |                       | 9    |   |       |   | (78    | ) |  |   | 224  
|                                          |  |        |       |      |   |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total current liabilities                 |  |        |      |      |   | 340                   |  |   | 317                       |   |  |                       | 50   |   |       |   | (78    | ) |  |   | 629  
|Long-term debt                            |  |        |      |      |   | 2,323                 |  |   | 7                         |   |  |                       | 179  |   |       |   |       |   |  |   | 2,509
|Subordinated convertible debentures       |  |        | 146   |      |   |                      |  |   |                          |   |  |                       |     |   |       |   |       |   |  |   | 146  
|Deferred taxes                            |  |        |      |      |   | 416                   |  |   | (9                        | ) |  |                       | 32   |   |       |   |       |   |  |   | 439  
|Other long-term liabilities               |  |        |      |      |   | 50                    |  |   | 56                        |   |  |                       |     |   |       |   |       |   |  |   | 106  
|                                          |  |        |       |      |   |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total liabilities                         |  |        | 146   |      |   | 3,129                 |  |   | 371                       |   |  |                       | 261  |   |       |   | (78    | ) |  |   | 3,829
|                                          |  |        |       |      |   |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total stockholders equity                |  |        | 1,581 |      |   | 1,600                 |  |   | 2,142                     |   |  |                       | 591  |   |       |   | (4,333 | ) |  |   | 1,581
|                                          |  |        |       |      |   |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total liabilities and equity              |  | $      | 1,727 |      | $ | 4,729                 |  | $ | 2,513                     |   |  | $                     | 852  |   |       | $ | (4,411 | ) |  | $ | 5,410
|                                          |  |        |       |      |   |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      



16



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##### Table of Contents

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2007



|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|----------------------------------------- |  | ------ | ----- | ---- | - | ----- | --------------------- |  | - | ------------------------- | - |  | --------------------- | ---- | - | ----- | - | ------ | - |  | - | -----
|                                          |  | Parent |       | URNA |   |       | GuarantorSubsidiaries |  |   | Non-GuarantorSubsidiaries |   |  | Other andEliminations |      |   | Total
|ASSETS                                    |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Cash and cash equivalents                 |  | $      |      |      | $ | 325   |                       |  | $ |                          |   |  | $                     | 56   |   |       | $ |       |   |  | $ | 381  
|Accounts receivable, net                  |  |        |      |      |   | (9    | )                     |  |   | 6                         |   |  |                       | 522  |   |       |   |       |   |  |   | 519  
|Intercompany receivable (payable)         |  |        |      |      |   | 71    |                       |  |   | 115                       |   |  |                       | (186 | ) |       |   |       |   |  |   |     
|Inventory                                 |  |        |      |      |   | 36    |                       |  |   | 43                        |   |  |                       | 12   |   |       |   |       |   |  |   | 91   
|Prepaid expenses and other assets         |  |        |      |      |   | 15    |                       |  |   | 38                        |   |  |                       | 4    |   |       |   |       |   |  |   | 57   
|Deferred taxes                            |  |        |      |      |   | 72    |                       |  |   |                          |   |  |                       |     |   |       |   |       |   |  |   | 72   
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total current assets                      |  |        |      |      |   | 510   |                       |  |   | 202                       |   |  |                       | 408  |   |       |   |       |   |  |   | 1,120
|Rental equipment, net                     |  |        |      |      |   | 1,465 |                       |  |   | 1,045                     |   |  |                       | 316  |   |       |   |       |   |  |   | 2,826
|Property and equipment, net               |  |        | 46    |      |   | 209   |                       |  |   | 154                       |   |  |                       | 31   |   |       |   |       |   |  |   | 440  
|Investments in subsidiaries               |  |        | 2,112 |      |   | 2,915 |                       |  |   |                          |   |  |                       |     |   |       |   | (5,027 | ) |  |   |     
|Goodwill and other intangible assets, net |  |        |      |      |   | 184   |                       |  |   | 1,066                     |   |  |                       | 154  |   |       |   |       |   |  |   | 1,404
|Other long-term assets                    |  |        | 6     |      |   | 41    |                       |  |   | 5                         |   |  |                       |     |   |       |   |       |   |  |   | 52   
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total assets                              |  | $      | 2,164 |      | $ | 5,324 |                       |  | $ | 2,472                     |   |  | $                     | 909  |   |       | $ | (5,027 | ) |  | $ | 5,842
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|LIABILITIES AND STOCKHOLDERS EQUITY      |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Current maturities of long-term debt      |  | $      |      |      | $ | 15    |                       |  | $ |                          |   |  | $                     |     |   |       | $ |       |   |  | $ | 15   
|Accounts payable                          |  |        |      |      |   | 59    |                       |  |   | 110                       |   |  |                       | 26   |   |       |   |       |   |  |   | 195  
|Accrued expenses and other liabilities    |  |        |      |      |   | 307   |                       |  |   | 58                        |   |  |                       | 31   |   |       |   | (86    | ) |  |   | 310  
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total current liabilities                 |  |        |      |      |   | 381   |                       |  |   | 168                       |   |  |                       | 57   |   |       |   | (86    | ) |  |   | 520  
|Long-term debt                            |  |        |      |      |   | 2,403 |                       |  |   | 12                        |   |  |                       | 140  |   |       |   |       |   |  |   | 2,555
|Subordinated convertible debentures       |  |        | 146   |      |   |      |                       |  |   |                          |   |  |                       |     |   |       |   |       |   |  |   | 146  
|Deferred taxes                            |  |        |      |      |   | 514   |                       |  |   | (9                        | ) |  |                       | 34   |   |       |   |       |   |  |   | 539  
|Other long-term liabilities               |  |        |      |      |   |      |                       |  |   | 64                        |   |  |                       |     |   |       |   |       |   |  |   | 64   
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total liabilities                         |  |        | 146   |      |   | 3,298 |                       |  |   | 235                       |   |  |                       | 231  |   |       |   | (86    | ) |  |   | 3,824
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total stockholders equity                |  |        | 2,018 |      |   | 2,026 |                       |  |   | 2,237                     |   |  |                       | 678  |   |       |   | (4,941 | ) |  |   | 2,018
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      
|Total liabilities and equity              |  | $      | 2,164 |      | $ | 5,324 |                       |  | $ | 2,472                     |   |  | $                     | 909  |   |       | $ | (5,027 | ) |  | $ | 5,842
|                                          |  |        |       |      |   |       |                       |  |   |                           |   |  |                       |      |   |       |   |        |   |  |   |      



17



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##### Table of Contents

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

For the Three Months Ended March 31, 2008



|                                                                    |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|------------------------------------------------------------------- |  | ------ | --- | - | ---- | - | --------------------- |  | ------------------------- | --- |  | --------------------- | --- | - | ----- | - | --- | - |  | - | ---
|                                                                    |  | Parent |     |   | URNA |   | GuarantorSubsidiaries |  | Non-GuarantorSubsidiaries |     |  | Other andEliminations |     |   | Total
|Revenues:                                                           |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Rental revenue                                                      |  | $      |    |   |      | $ | 276                   |  | $                         | 223 |  | $                     | 72  |   |       | $ |    |   |  | $ | 571
|Sales of rental equipment                                           |  |        |    |   |      |   | 35                    |  |                           | 25  |  |                       | 6   |   |       |   |    |   |  |   | 66 
|New equipment sales                                                 |  |        |    |   |      |   | 20                    |  |                           | 13  |  |                       | 9   |   |       |   |    |   |  |   | 42 
|Contractor supplies sales                                           |  |        |    |   |      |   | 20                    |  |                           | 26  |  |                       | 10  |   |       |   |    |   |  |   | 56 
|Service and other revenues                                          |  |        |    |   |      |   | 19                    |  |                           | 13  |  |                       | 5   |   |       |   |    |   |  |   | 37 
|                                                                    |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Total revenues                                                      |  |        |    |   |      |   | 370                   |  |                           | 300 |  |                       | 102 |   |       |   |    |   |  |   | 772
|                                                                    |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Cost of revenues:                                                   |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Cost of equipment rentals, excluding depreciation                   |  |        |    |   |      |   | 125                   |  |                           | 115 |  |                       | 35  |   |       |   |    |   |  |   | 275
|Depreciation of rental equipment                                    |  |        |    |   |      |   | 54                    |  |                           | 40  |  |                       | 13  |   |       |   |    |   |  |   | 107
|Cost of rental equipment sales                                      |  |        |    |   |      |   | 27                    |  |                           | 18  |  |                       | 4   |   |       |   |    |   |  |   | 49 
|Cost of new equipment sales                                         |  |        |    |   |      |   | 15                    |  |                           | 11  |  |                       | 8   |   |       |   |    |   |  |   | 34 
|Cost of contractor supplies sales                                   |  |        |    |   |      |   | 16                    |  |                           | 20  |  |                       | 8   |   |       |   |    |   |  |   | 44 
|Cost of service and other revenues                                  |  |        |    |   |      |   | 8                     |  |                           | 5   |  |                       | 2   |   |       |   |    |   |  |   | 15 
|                                                                    |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Total cost of revenues                                              |  |        |    |   |      |   | 245                   |  |                           | 209 |  |                       | 70  |   |       |   |    |   |  |   | 524
|                                                                    |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Gross profit                                                        |  |        |    |   |      |   | 125                   |  |                           | 91  |  |                       | 32  |   |       |   |    |   |  |   | 248
|Selling, general and administrative expenses                        |  |        |    |   |      |   | 55                    |  |                           | 54  |  |                       | 22  |   |       |   |    |   |  |   | 131
|Non-rental depreciation and amortization                            |  |        | 3   |   |      |   | 6                     |  |                           | 5   |  |                       | 1   |   |       |   |    |   |  |   | 15 
|                                                                    |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Operating (loss) income                                             |  |        | (3  | ) |      |   | 64                    |  |                           | 32  |  |                       | 9   |   |       |   |    |   |  |   | 102
|Interest expense, net                                               |  |        |    |   |      |   | 39                    |  |                           |    |  |                       | 2   |   |       |   |    |   |  |   | 41 
|Interest expense-subordinated convertible debentures                |  |        | 2   |   |      |   |                      |  |                           |    |  |                       |    |   |       |   |    |   |  |   | 2  
|Other expense (income), net                                         |  |        | (15 | ) |      |   | 14                    |  |                           | 13  |  |                       | (12 | ) |       |   |    |   |  |   |   
|                                                                    |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Income from continuing operations before provision for income taxes |  |        | 10  |   |      |   | 11                    |  |                           | 19  |  |                       | 19  |   |       |   |    |   |  |   | 59 
|Provision for income taxes                                          |  |        | 4   |   |      |   | 4                     |  |                           | 7   |  |                       | 6   |   |       |   |    |   |  |   | 21 
|                                                                    |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Income before equity in net earnings of subsidiaries                |  |        | 6   |   |      |   | 7                     |  |                           | 12  |  |                       | 13  |   |       |   |    |   |  |   | 38 
|Equity in net earnings of subsidiaries                              |  |        | 32  |   |      |   | 25                    |  |                           |    |  |                       |    |   |       |   | (57 | ) |  |   |   
|                                                                    |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Net income (loss)                                                   |  | $      | 38  |   |      | $ | 32                    |  | $                         | 12  |  | $                     | 13  |   |       | $ | (57 | ) |  | $ | 38 
|                                                                    |  |        |     |   |      |   |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    



18



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CONDENSED CONSOLIDATING STATEMENTS OF INCOME

For the Three Months Ended March 31, 2007



|                                                                           |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|-------------------------------------------------------------------------- |  | ------ | -- | - | ---- | - | --- | --------------------- |  | ------------------------- | --- |  | --------------------- | --- | - | ----- | - | --- | - |  | - | ---
|                                                                           |  | Parent |    |   | URNA |   |     | GuarantorSubsidiaries |  | Non-GuarantorSubsidiaries |     |  | Other andEliminations |     |   | Total
|Revenues:                                                                  |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Rental revenue                                                             |  | $      |   |   |      | $ | 279 |                       |  | $                         | 230 |  | $                     | 58  |   |       | $ |    |   |  | $ | 567
|Sales of rental equipment                                                  |  |        |   |   |      |   | 41  |                       |  |                           | 32  |  |                       | 9   |   |       |   |    |   |  |   | 82 
|New equipment sales                                                        |  |        |   |   |      |   | 27  |                       |  |                           | 19  |  |                       | 8   |   |       |   |    |   |  |   | 54 
|Contractor supplies sales                                                  |  |        |   |   |      |   | 39  |                       |  |                           | 44  |  |                       | 11  |   |       |   |    |   |  |   | 94 
|Service and other revenues                                                 |  |        |   |   |      |   | 21  |                       |  |                           | 16  |  |                       | 4   |   |       |   |    |   |  |   | 41 
|                                                                           |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Total revenues                                                             |  |        |   |   |      |   | 407 |                       |  |                           | 341 |  |                       | 90  |   |       |   |    |   |  |   | 838
|                                                                           |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Cost of revenues:                                                          |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Cost of equipment rentals, excluding depreciation                          |  |        |   |   |      |   | 136 |                       |  |                           | 115 |  |                       | 30  |   |       |   |    |   |  |   | 281
|Depreciation of rental equipment                                           |  |        |   |   |      |   | 52  |                       |  |                           | 39  |  |                       | 11  |   |       |   |    |   |  |   | 102
|Cost of rental equipment sales                                             |  |        |   |   |      |   | 30  |                       |  |                           | 22  |  |                       | 6   |   |       |   |    |   |  |   | 58 
|Cost of new equipment sales                                                |  |        |   |   |      |   | 21  |                       |  |                           | 17  |  |                       | 6   |   |       |   |    |   |  |   | 44 
|Cost of contractor supplies sales                                          |  |        |   |   |      |   | 35  |                       |  |                           | 33  |  |                       | 10  |   |       |   |    |   |  |   | 78 
|Cost of service and other revenues                                         |  |        |   |   |      |   | 10  |                       |  |                           | 5   |  |                       | 2   |   |       |   |    |   |  |   | 17 
|                                                                           |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Total cost of revenues                                                     |  |        |   |   |      |   | 284 |                       |  |                           | 231 |  |                       | 65  |   |       |   |    |   |  |   | 580
|                                                                           |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Gross profit                                                               |  |        |   |   |      |   | 123 |                       |  |                           | 110 |  |                       | 25  |   |       |   |    |   |  |   | 258
|Selling, general and administrative expenses                               |  |        |   |   |      |   | 59  |                       |  |                           | 67  |  |                       | 21  |   |       |   |    |   |  |   | 147
|Non-rental depreciation and amortization                                   |  |        | 2  |   |      |   | 4   |                       |  |                           | 5   |  |                       | 1   |   |       |   |    |   |  |   | 12 
|                                                                           |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Operating (loss) income                                                    |  |        | (2 | ) |      |   | 60  |                       |  |                           | 38  |  |                       | 3   |   |       |   |    |   |  |   | 99 
|Interest expense, net                                                      |  |        |   |   |      |   | 45  |                       |  |                           |    |  |                       | 2   |   |       |   |    |   |  |   | 47 
|Interest expense-subordinated convertible debentures                       |  |        | 2  |   |      |   |    |                       |  |                           |    |  |                       |    |   |       |   |    |   |  |   | 2  
|Other expense (income), net                                                |  |        |   |   |      |   | 9   |                       |  |                           | 5   |  |                       | (14 | ) |       |   |    |   |  |   |   
|                                                                           |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|(Loss) income from continuing operations before provision for income taxes |  |        | (4 | ) |      |   | 6   |                       |  |                           | 33  |  |                       | 15  |   |       |   |    |   |  |   | 50 
|(Benefit) provision for income taxes                                       |  |        | (2 | ) |      |   | 2   |                       |  |                           | 12  |  |                       | 6   |   |       |   |    |   |  |   | 18 
|                                                                           |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|(Loss) income from continuing operations                                   |  |        | (2 | ) |      |   | 4   |                       |  |                           | 21  |  |                       | 9   |   |       |   |    |   |  |   | 32 
|(Income) loss from discontinued operation, net of taxes                    |  |        |   |   |      |   | (2  | )                     |  |                           | 4   |  |                       |    |   |       |   |    |   |  |   | 2  
|                                                                           |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|(Loss) income before equity in net earnings of subsidiaries                |  |        | (2 | ) |      |   | 6   |                       |  |                           | 17  |  |                       | 9   |   |       |   |    |   |  |   | 30 
|Equity in net earnings of subsidiaries                                     |  |        | 32 |   |      |   | 26  |                       |  |                           |    |  |                       |    |   |       |   | (58 | ) |  |   |   
|                                                                           |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    
|Net income (loss)                                                          |  | $      | 30 |   |      | $ | 32  |                       |  | $                         | 17  |  | $                     | 9   |   |       | $ | (58 | ) |  | $ | 30 
|                                                                           |  |        |    |   |      |   |     |                       |  |                           |     |  |                       |     |   |       |   |     |   |  |   |    



19



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CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Three Months Ended March 31, 2008



|                                                                     |  |        |    |   |      |   |     |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |     |  
|-------------------------------------------------------------------- |  | ------ | -- | - | ---- | - | --- | --------------------- |  | - | ------------------------- | - |  | --------------------- | --- | ----- |  | - | - |  | - | --- | -
|                                                                     |  | Parent |    |   | URNA |   |     | GuarantorSubsidiaries |  |   | Non-GuarantorSubsidiaries |   |  | Other andEliminations |     | Total | 
|Net cash (used in) provided by operating activities                  |  |        | (2 | ) |      |   | 182 |                       |  |   | 29                        |   |  |                       | 17  |       |  |   |  |  |   | 226 |  
|                                                                     |  |        |    |   |      |   |     |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |     |  
|Net cash used in investing activities                                |  |        |   |   |      |   | (41 | )                     |  |   | (25                       | ) |  |                       | (17 | )     |  |   |  |  |   | (83 | )
|                                                                     |  |        |    |   |      |   |     |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |     |  
|Net cash provided by (used in) financing activities                  |  |        | 2  |   |      |   | (11 | )                     |  |   |                          |   |  |                       | 2   |       |  |   |  |  |   | (7  | )
|                                                                     |  |        |    |   |      |   |     |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |     |  
|Effect of foreign exchange rate changes on cash and cash equivalents |  |        |   |   |      |   |    |                       |  |   |                          |   |  |                       | (2  | )     |  |   |  |  |   | (2  | )
|                                                                     |  |        |    |   |      |   |     |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |     |  
|Increase in cash and cash equivalents                                |  |        |   |   |      |   | 130 |                       |  |   | 4                         |   |  |                       |    |       |  |   |  |  |   | 134 |  
|Cash and cash equivalents at beginning of period                     |  |        |   |   |      |   | 325 |                       |  |   |                          |   |  |                       | 56  |       |  |   |  |  |   | 381 |  
|                                                                     |  |        |    |   |      |   |     |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |     |  
|Cash and cash equivalents at end of period                           |  | $      |   |   |      | $ | 455 |                       |  | $ | 4                         |   |  | $                     | 56  |       |  | $ |  |  | $ | 515 |  
|                                                                     |  |        |    |   |      |   |     |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |     |  

CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Three Months Ended March 31, 2007



|                                                                     |  |        |    |   |      |   |      |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |      |  
|-------------------------------------------------------------------- |  | ------ | -- | - | ---- | - | ---- | --------------------- |  | - | ------------------------- | - |  | --------------------- | --- | ----- |  | - | - |  | - | ---- | -
|                                                                     |  | Parent |    |   | URNA |   |      | GuarantorSubsidiaries |  |   | Non-GuarantorSubsidiaries |   |  | Other andEliminations |     | Total | 
|Net cash provided by operating activitiescontinuing operations      |  | $      | 3  |   |      | $ | 25   |                       |  | $ | 93                        |   |  | $                     | 6   |       |  | $ |  |  | $ | 127  |  
|Net cash provided by operating activitiesdiscontinued operation     |  |        |   |   |      |   |     |                       |  |   | 6                         |   |  |                       |    |       |  |   |  |  |   | 6    |  
|                                                                     |  |        |    |   |      |   |      |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |      |  
|Net cash provided by operating activities                            |  |        | 3  |   |      |   | 25   |                       |  |   | 99                        |   |  |                       | 6   |       |  |   |  |  |   | 133  |  
|                                                                     |  |        |    |   |      |   |      |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |      |  
|Net cash used in investing activitiescontinuing operations          |  |        | (5 | ) |      |   | (125 | )                     |  |   | (82                       | ) |  |                       | (21 | )     |  |   |  |  |   | (233 | )
|Net cash provided by investing activitiesdiscontinued operation     |  |        |   |   |      |   | 68   |                       |  |   | 1                         |   |  |                       |    |       |  |   |  |  |   | 69   |  
|                                                                     |  |        |    |   |      |   |      |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |      |  
|Net cash used in investing activities                                |  |        | (5 | ) |      |   | (57  | )                     |  |   | (81                       | ) |  |                       | (21 | )     |  |   |  |  |   | (164 | )
|                                                                     |  |        |    |   |      |   |      |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |      |  
|Net cash provided by (used in) financing activities                  |  |        | 2  |   |      |   | (6   | )                     |  |   |                          |   |  |                       | 18  |       |  |   |  |  |   | 14   |  
|                                                                     |  |        |    |   |      |   |      |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |      |  
|Effect of foreign exchange rate changes on cash and cash equivalents |  |        |   |   |      |   |     |                       |  |   |                          |   |  |                       | 2   |       |  |   |  |  |   | 2    |  
|                                                                     |  |        |    |   |      |   |      |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |      |  
|(Decrease) increase in cash and cash equivalents                     |  |        |   |   |      |   | (38  | )                     |  |   | 18                        |   |  |                       | 5   |       |  |   |  |  |   | (15  | )
|Cash and cash equivalents at beginning of period                     |  |        |   |   |      |   | 40   |                       |  |   | 3                         |   |  |                       | 76  |       |  |   |  |  |   | 119  |  
|                                                                     |  |        |    |   |      |   |      |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |      |  
|Cash and cash equivalents at end of period                           |  | $      |   |   |      | $ | 2    |                       |  | $ | 21                        |   |  | $                     | 81  |       |  | $ |  |  | $ | 104  |  
|                                                                     |  |        |    |   |      |   |      |                       |  |   |                           |   |  |                       |     |       |  |   |   |  |   |      |  



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|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations (Dollars in millions, except per share data and unless otherwise indicated)
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

Executive Overview

We are the largest equipment rental company in the world with an integrated network of 674 rental locations in the United States, Canada and Mexico. Although the equipment rental industry is highly fragmented and diverse, we believe we are
well positioned to take advantage of this environment because as a larger company we have more resources and certain competitive advantages over smaller competitors. These advantages include greater purchasing power, the ability to provide customers
with a broader range of equipment and services as well as with newer and better maintained equipment, and greater flexibility to transfer equipment among branches.

We offer for rent over 2,900 classes of rental equipment, including construction equipment, industrial and heavy machinery, aerial work platforms, trench safety equipment and homeowner items. Our revenues are derived
from the following sources: equipment rentals, sales of used rental equipment, sales of new equipment, contractor supplies sales and service and other. In 2007, rental equipment revenues represented 70 percent of our total revenues. We expect this
percentage to increase to approximately 75 percent in 2008 as we reposition our contractor supplies business.

In the second half of 2007,
we began to implement a change in strategy aimed at growing our earnings at higher margins, while also continuing to generate significant cash flow. The three key elements of this strategy are: refocusing our employees and sales representatives on
our core rental business; optimizing the management of our rental fleet; and reducing our operating costs.

We believe this strategy,
coupled with our broad geographic footprint, extensive rental fleet, advanced information technology systems, disciplined purchasing power, industry experience and ability to deliver extraordinary customer service, will enable us to strengthen our
leadership position in the equipment rental industry and improve our returns to shareholders.

As discussed in note 5 to our condensed
consolidated financial statements and elsewhere in this report, the Company is subject to certain ongoing class action and derivative suits, as well as the subject of an SEC inquiry. The U.S. Attorneys office has also requested information
from the Company about matters related to the SEC inquiry. We have not accrued any amounts related to the ultimate disposition of these matters to date and any liabilities resulting from an adverse judgment or settlement of these matters may be
material to our results of operations and cash flows during the period incurred. Other costs associated with the SEC inquiry, the U.S. Attorneys office inquiry and the class action and derivative suits, including reimbursement of
attorneys fees incurred by indemnified officers and directors, are expensed as incurred.



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Financial Overview

Income from continuing operations. Income from continuing operations and diluted earnings per share from continuing operations for the three months ended March 31, 2008 and 2007 were as follows:



|                                                      |  |                             |      |      |   |     
|----------------------------------------------------- |  | --------------------------- | ---- | ---- | - | ----
|                                                      |  | Three Months EndedMarch 31,
|                                                      |  | 2008                        |      | 2007
|Income from continuing operations                     |  | $                           | 38   |      | $ | 32  
|Diluted earnings per share from continuing operations |  | $                           | 0.34 |      | $ | 0.30

2008 income from continuing operations of $38, or $0.34 per diluted share, increased 18.8 percent
from $32 for 2007, reflecting the beneficial impact of the Companys renewed focus on its core rental business and ongoing initiatives to reduce operating costs.

EBITDA GAAP Reconciliation.EBITDA represents the sum of income from continuing operations before provision for income taxes, interest expense, net, interest expense-subordinated convertible
debentures, depreciation-rental equipment and non-rental depreciation and amortization. Management believes EBITDA provides useful information about operating performance and period-over-period growth. However, EBITDA is not a measure of financial
performance or liquidity under GAAP and accordingly should not be considered an alternative to net income or cash flow from operating activities as an indicator of operating performance or liquidity. The table below provides a reconciliation between
income from continuing operations before provision for income taxes and EBITDA.



|                                                                    |  |                             |     |      |   |    
|------------------------------------------------------------------- |  | --------------------------- | --- | ---- | - | ---
|                                                                    |  | Three Months EndedMarch 31,
|                                                                    |  | 2008                        |     | 2007
|Income from continuing operations before provision for income taxes |  | $                           | 59  |      | $ | 50 
|Interest expense, net                                               |  |                             | 41  |      |   | 47 
|Interest expense  subordinated convertible debentures              |  |                             | 2   |      |   | 2  
|Depreciation  rental equipment                                     |  |                             | 107 |      |   | 102
|Non-rental depreciation and amortization                            |  |                             | 15  |      |   | 12 
|                                                                    |  |                             |     |      |   |    
|EBITDA                                                              |  | $                           | 224 |      | $ | 213
|                                                                    |  |                             |     |      |   |    

For the three months ended March 31, 2008, EBITDA increased $11, or 5.2 percent, also
reflecting the beneficial impact of the Companys renewed focus on its core rental business and ongoing initiatives to reduce operating costs.

Results of Operations

As discussed in note 2 to our unaudited condensed consolidated financial statements, our reportable
segments are general rentals and trench safety, pump and power. The general rentals segment includes the rental of construction, aerial, industrial and homeowner equipment and related services and activities. The general rentals segments
customers include construction and industrial companies, manufacturers, utilities, municipalities and homeowners. The general rentals segment operates throughout the United States and Canada and has one location in Mexico. The trench safety, pump
and power segment includes the rental of specialty construction products and related services. The trench safety, pump and power segments customers include construction companies involved in infrastructure projects, municipalities and
industrial companies. This segment operates in the United States and has one location in Canada.

These segments align our external segment
reporting with how management evaluates and allocates resources. We evaluate segment performance based on segment operating results.

Our
revenues and operating results fluctuate from quarter to quarter reflecting the seasonal rental patterns of our customers, with rental activity tending to be lower in the winter.

Revenues by segment were as follows:



|                                  |  |                |     |                              |   |       |  |   |    
|--------------------------------- |  | -------------- | --- | ---------------------------- | - | ----- |  | - | ---
|                                  |  | Generalrentals |     | Trench safety,pump and power |   | Total
|Three months ended March 31, 2008 |  |                |     |                              |   |       |  |   |    
|Equipment rentals                 |  | $              | 535 |                              | $ | 36    |  | $ | 571
|Sales of rental equipment         |  |                | 63  |                              |   | 3     |  |   | 66 
|New equipment sales               |  |                | 40  |                              |   | 2     |  |   | 42 
|Contractor supplies sales         |  |                | 54  |                              |   | 2     |  |   | 56 
|Service and other revenues        |  |                | 35  |                              |   | 2     |  |   | 37 
|                                  |  |                |     |                              |   |       |  |   |    
|Total revenues                    |  | $              | 727 |                              | $ | 45    |  | $ | 772
|                                  |  |                |     |                              |   |       |  |   |    
|Three months ended March 31, 2007 |  |                |     |                              |   |       |  |   |    
|Equipment rentals                 |  | $              | 529 |                              | $ | 38    |  | $ | 567
|Sales of rental equipment         |  |                | 79  |                              |   | 3     |  |   | 82 
|New equipment sales               |  |                | 51  |                              |   | 3     |  |   | 54 
|Contractor supplies sales         |  |                | 90  |                              |   | 4     |  |   | 94 
|Service and other revenues        |  |                | 40  |                              |   | 1     |  |   | 41 
|                                  |  |                |     |                              |   |       |  |   |    
|Total revenues                    |  | $              | 789 |                              | $ | 49    |  | $ | 838
|                                  |  |                |     |                              |   |       |  |   |    



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Three months ended March 31, 2008 and 2007. 2008 equipment rentals of $571 increased $4, or
0.7 percent, reflecting a 0.7 percentage point increase in time utilization. Equipment rentals represented 74 percent and 68 percent of total revenues for the three months ended March 31, 2008 and 2007, respectively. This year-over-year
increase is consistent with our strategy to focus on the core rental business and reposition contractor supplies. On a segment basis, equipment rentals represented 74 percent and 80 percent of total revenues for general rentals and trench safety,
pump and power, respectively. General rentals equipment rentals increased $6, or 1.1 percent, reflecting increased time utilization.

Sales of rental equipment. For the three months ended March 31, 2008 and 2007, sales of rental equipment represented approximately 9 percent of our total revenues and our general rentals segment accounted for substantially all
of these sales. Sales of rental equipment for trench safety, pump and power were insignificant. For the three months ended March 31, 2008, sales of rental equipment declined 19.5 percent as compared to the same period in 2007, primarily
reflecting a decline in the volume of equipment sold as we focus on selling older assets, in line with our life-cycle management strategy.

New equipment sales. For the three months ended March 31, 2008 and 2007, sales of new equipment represented approximately 5 percent of our total revenues. Our general rentals segment accounted for substantially all of these
sales. New equipment sales for trench safety, pump and power were insignificant. For the three months ended March 31, 2008, sales of new equipment declined $12 as compared to the same period in 2007, primarily reflecting a decline in the volume
of equipment sold.

Contractor supplies sales. Contractor supplies sales represent our revenues associated with selling a variety of
supplies, including construction consumables, tools, small equipment and safety supplies. Consistent with sales of rental and new equipment, general rentals accounts for substantially all of our contractor supplies sales. For the three months ended
March 31, 2008, contractor supplies sales declined 40.4 percent as compared to the same period in 2007. Consistent with our strategy of refocusing our contractor supplies business, the decline reflects a reduction in the volume of supplies
sold, partially offset by improved pricing. The decline in volume is consistent with the reduction in our product offering (fewer SKUs are offered in our catalogue).

Service and other. Service and other primarily represents our revenues earned from providing repair and maintenance services (including parts sales). Consistent with sales of rental and new equipment as well as
sales of contractor supplies, general rentals accounts for substantially all of our service and other revenue. For the three months ended March 31, 2008, service and other revenue declined 9.8 percent as compared to the same period in 2007,
primarily reflecting reduced revenues from the licensing of software.



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Segment Operating Profit

Segment operating profit and operating margin were as follows:



|                                  |  |                |      |   |                              |   |      |       |  |   |      |  
|--------------------------------- |  | -------------- | ---- | - | ---------------------------- | - | ---- | ----- |  | - | ---- | -
|                                  |  | Generalrentals |      |   | Trench safety,pump and power |   |      | Total | 
|Three months ended March 31, 2008 |  |                |      |   |                              |   |      |       |  |   |      |  
|Operating Profit                  |  | $              | 93   |   |                              | $ | 9    |       |  | $ | 102  |  
|Operating Margin                  |  |                | 12.8 | % |                              |   | 20.0 | %     |  |   | 13.2 | %
|Three months ended March 31, 2007 |  |                |      |   |                              |   |      |       |  |   |      |  
|Operating Profit                  |  | $              | 89   |   |                              | $ | 10   |       |  | $ | 99   |  
|Operating Margin                  |  |                | 11.3 | % |                              |   | 20.4 | %     |  |   | 11.8 | %

For the three months ended March 31, 2008, operating profit increased by $3, or 3.0 percent,
and operating margins increased 1.4 percentage points to 13.2 percent, reflecting improved gross margin performance as well as improved selling, general and administrative expense leverage. On a segment basis, our general rentals operating margin
improved 1.5 percentage points, reflecting improved gross margin performance as well as improved selling, general and administrative expense leverage. In our trench safety, pump and power segment, our operating margins declined from 20.4 percent to
20.0 percent, reflecting a decline in gross margin performance, partially offset by improved selling, general and administrative expense leverage. In both segments, our improved selling, general and administrative expense leverage reflects our
ongoing initiatives to reduce operating costs.

Gross Margin. Gross margins by revenue classification were as follows:



|                           |  |                    |   |  |               |  
|-------------------------- |  | ------------------ | - |  | ------------- | -
|                           |  | Three Months Ended |  
|                           |  | March 31,2008      |   |  | March 31,2007 |  
|Total gross margin         |  | 32.1               | % |  | 30.8          | %
|Equipment rentals          |  | 33.1               | % |  | 32.5          | %
|Sales of rental equipment  |  | 25.8               | % |  | 29.3          | %
|New equipment sales        |  | 19.0               | % |  | 18.5          | %
|Contractor supplies sales  |  | 21.4               | % |  | 17.0          | %
|Service and other revenues |  | 59.5               | % |  | 58.5          | %

For the three months ended March 31, 2008, total gross profit margin increased 1.3 percentage
points as compared to the same period in 2007, primarily reflecting improved gross margins from equipment rentals and contractor supplies sales, partially offset by reduced gross margins from sales of rental equipment. Equipment rentals gross margin
increased 0.6 percentage points, primarily reflecting increased revenue and slightly reduced rental costs resulting from our cost saving initiatives. The increase in gross margins on contractor supplies sales of 4.4 percentage points primarily
reflects favorable changes in product mix and pricing. The gross margin decline on sales of rental equipment primarily reflects changes in the mix of equipment sold.

Selling, general and administrative expenses (SG&A). SG&A expense information for the three months ended March 31, 2008 and 2007 was as follows:



|                                |  |                    |      |   |               |   |      |  
|------------------------------- |  | ------------------ | ---- | - | ------------- | - | ---- | -
|                                |  | Three Months Ended |     
|                                |  | March 31,2008      |      |   | March 31,2007 |  
|Total SG&A expenses             |  | $                  | 131  |   |               | $ | 147  |  
|SG&A as a percentage of revenue |  |                    | 17.0 | % |               |   | 17.5 | %

SG&A expense primarily includes sales force compensation, bad debt expense, information
technology costs, advertising and marketing expenses, third party professional fees, management salaries and clerical and administrative overhead. For the three months ended March 31, 2008, SG&A expense of $131 declined $16 as compared to
2007 and declined by 0.5 percentage points as a percentage of revenue. The decline in the absolute level of our SG&A expense and our improved SG&A ratio reflects the benefits we are realizing from our cost-saving initiatives, including
reduced compensation costs, partially offset by normal inflationary increases.



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##### Table of Contents

Non-rental depreciation and amortizationfor the three months ended March 31, 2008 and
2007 was as follows:



|                                                                  |  |                    |     |   |               |   |     |  
|----------------------------------------------------------------- |  | ------------------ | --- | - | ------------- | - | --- | -
|                                                                  |  | Three Months Ended |    
|                                                                  |  | March 31,2008      |     |   | March 31,2007 |  
|Non-rental depreciation and amortization                          |  | $                  | 15  |   |               | $ | 12  |  
|Non-rental depreciation and amortization as a percent of revenues |  |                    | 1.9 | % |               |   | 1.4 | %

Non-rental depreciation and amortization includes (i) depreciation expense associated with
equipment that is not offered for rent (such as computers and office equipment) and (ii) amortization expense associated with leasehold improvements and other intangible assets. Our other intangible assets consist of customer relationships and
non-compete agreements. The increase in 2008 primarily relates to a higher base of depreciable assets.

Interest expense, net
for the three months ended March 31, 2008 and 2007 was as follows:



|                      |  |                    |    |               |   |   
|--------------------- |  | ------------------ | -- | ------------- | - | --
|                      |  | Three Months Ended
|                      |  | March 31,2008      |    | March 31,2007
|Interest expense, net |  | $                  | 41 |               | $ | 47

Interest expense, net for the three months ended March 31, 2008 decreased $6 as compared to
the same period last year, primarily reflecting lower interest expense as a result of less variable rate debt following the termination of our interest rate swap agreements in January 2008 (see Interest Rate Risk below) and higher
interest income relating to greater average cash and cash equivalent balances in 2008.

Income taxes. The following table
summarizes our continuing operations provision for income taxes and the related effective tax rate for the three months ended March 31, 2008 and 2007:



|                                  |  |                    |      |   |               |   |      |  
|--------------------------------- |  | ------------------ | ---- | - | ------------- | - | ---- | -
|                                  |  | Three Months Ended |     
|                                  |  | March 31,2008      |      |   | March 31,2007 |  
|Income from continuing operations |  | $                  | 59   |   |               | $ | 50   |  
|Provision for income taxes        |  |                    | 21   |   |               |   | 18   |  
|Effective tax rate                |  |                    | 35.6 | % |               |   | 36.0 | %

The difference between the 2008 effective tax rate of 35.6 percent and the U.S. federal statutory
income tax rate of 35 percent primarily relates to state income taxes, partially offset by fuel tax credits, tax on foreign earnings and the release of state tax valuation allowances. The difference between the 2007 effective tax rate of 36.0
percent and the U.S. federal statutory income tax primarily relates to state taxes as well as certain non deductible charges, partially offset by the benefit we realized from the reversal of a valuation allowance related to certain foreign tax
credits.

Liquidity and Capital Resources

Liquidity. We manage our liquidity using internal cash management practices, which are subject to (i) the policies and cooperation of the financial institutions we utilize to maintain and provide cash management services,
(ii) the terms and other requirements of the agreements to which we are a party and (iii) the statutes, regulations and practices of each of the local jurisdictions in which we operate.

Our principal existing sources of cash are cash generated from operations, including from the sale of rental equipment, and borrowings available under
our revolving credit facility and receivables securitization facility. As of March 31, 2008, we had (i) $515 of borrowing capacity available under the revolving credit facility portion of our $1.55 billion senior credit facility,
(ii) $300 of borrowing capacity available under our receivables securitization facility and (iii) cash and cash equivalents of $515. Cash equivalents at March 31, 2008 consist of high quality, low risk Treasury securities and do not
include any auction rate securities. We believe that our existing sources of cash will be sufficient to support our existing operations over the next twelve months.

We expect that our principal needs for cash relating to our existing operations over the next twelve months will be to fund (i) operating activities and working capital, (ii) the purchase of rental equipment
and inventory items offered for sale, (iii) payments due under operating leases and (iv) debt service. We plan to fund such cash requirements from our existing sources of cash. In addition, we may seek additional financing through the
securitization of some of our equipment or real estate or through the use of additional operating leases.



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Loan Covenants and Compliance.As of March 31, 2008, we were in compliance with the
covenants and other provisions of our senior secured credit facility, the senior notes, the subordinated convertible debentures and our accounts receivables securitization facility. Any failure to be in compliance with any material provision or
covenant of these agreements could have a material adverse effect on our liquidity and operations.

Sources and Uses of Cash 
Continuing Operations. During the three months ended March 31, 2008, we (i) generated cash from operating activities of $226 and (ii) generated cash from the sale of rental equipment of $66. We used cash during this period
principally to (i) purchase rental equipment of $136 and (ii) purchase other property and equipment of $15. During the three months ended March 31, 2007, we (i) generated cash from operating activities of $127 and
(ii) generated cash from the sale of rental equipment of $82. We used cash during this period principally to (i) purchase rental equipment of $265, (ii) purchase other property and equipment of $31 and (iii) purchase other
companies for $21. Additionally, we generated cash from the sale of our discontinued operation of $68.

Free Cash Flow GAAP
Reconciliation.We define free cash flow as (i) net cash provided by operating activities less (ii) purchases of rental and non-rental equipment plus (iii) proceeds from sales of rental and non-rental equipment and
excess tax benefits from share-based payment arrangements. Management believes free cash flow provides useful additional information concerning cash flow available to meet future debt service obligations and working capital requirements. However,
free cash flow is not a measure of financial performance or liquidity under Generally Accepted Accounting Principles (GAAP). Accordingly, free cash flow should not be considered an alternative to net income or cash flow from operating
activities as indicators of operating performance or liquidity. The table below provides a reconciliation between net cash provided by operating activities and free cash flow.



|                                                                |  |                              |      |   |      |   |      |  
|--------------------------------------------------------------- |  | ---------------------------- | ---- | - | ---- | - | ---- | -
|                                                                |  | Three Months Ended March 31, |     
|                                                                |  | 2008                         |      |   | 2007 |  
|Net cash provided by operating activitiescontinuing operations |  | $                            | 226  |   |      | $ | 127  |  
|Purchases of rental equipment                                   |  |                              | (136 | ) |      |   | (265 | )
|Purchases of non-rental equipment                               |  |                              | (15  | ) |      |   | (31  | )
|Proceeds from sales of rental equipment                         |  |                              | 66   |   |      |   | 82   |  
|Proceeds from sales of non-rental equipment                     |  |                              | 2    |   |      |   | 2    |  
|Excess tax benefits from share-based payment arrangements       |  |                              |     |   |      |   | 2    |  
|                                                                |  |                              |      |   |      |   |      |  
|Free cash flow                                                  |  | $                            | 143  |   |      | $ | (83  | )
|                                                                |  |                              |      |   |      |   |      |  

Free cash flow generation for the three months ended March 31, 2008 was $143, an increase of
$226 as compared to free cash flow usage of $83 in the three months ended March 31, 2007. The year-over-year increase in free cash flow reflects reduced capital expenditures and reduced working capital employed in 2008 compared with 2007.

Our credit ratings as of April 24, 2008 were as follows:



|        |  |                  |  |        
|------- |  | ---------------- |  | -------
|        |  | Corporate Rating |  | Outlook
|Moodys |  | B1               |  | Stable 
|S&P     |  | BB-              |  | Stable 
|Fitch   |  | BB-              |  | Stable 

Both our ability to obtain financing and the related cost of borrowing are affected by our credit
ratings, which are periodically reviewed by these rating agencies. Our current credit ratings are below investment grade and we expect our access to the public debt markets to be limited to the non-investment grade segment.

Relationship between Holdings and URNA.Holdings is principally a holding company and primarily conducts its operations through its wholly
owned subsidiary, URNA, and subsidiaries of URNA. Holdings provides certain services to URNA in connection with its operations. These services principally include: (i) senior management services, (ii) finance and tax related services and
support, (iii) information technology systems and support, (iv) acquisition related services, (v) legal services and (vi) human resource support. In addition, Holdings leases certain equipment and real property that are made
available for use by URNA and its subsidiaries.



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##### Table of Contents

|Item 3. | Quantitative and Qualitative Disclosures about Market Risk
|------- | ----------------------------------------------------------

Our exposure to market risk primarily consists of (1) interest rate risk associated with our variable rate debt and (2) foreign currency exchange rate risk primarily associated with our Canadian operations.

Interest Rate Risk. During 2007 and earlier periods, we utilized interest rate swap agreements and interest rate cap agreements to manage
our interest costs and exposure to changes in interest rates. As of December 31, 2007, we had swap agreements with an aggregate notional amount of $1.2 billion. The effect of the swap agreements were, at December 31, 2007, to convert $1.2
billion of our fixed rate notes to floating rate instruments. In January 2008, we terminated all of our interest rate swap agreements and made a payment of $4.

As of March 31, 2008, we had an aggregate of $461 of indebtedness that bears interest at variable rates. As of March 31, 2008, the debt that was subject to fluctuations in interest rates included $135 of
borrowings under our Canadian revolving facility and $326 of term loans. The interest rates applicable to our variable rate debt on March 31, 2008 were (i) 5.5 percent for the revolving credit facility (which represents the Canadian rate,
since the amount outstanding was Canadian borrowings) and (ii) 5.1 percent for the term loan. As of March 31, 2008, based upon the amount of our variable rate debt outstanding, our annual after-tax earnings would decrease by approximately
$3 for each one percentage point increase in the interest rates applicable to our variable rate debt.

The amount of our variable rate
indebtedness may fluctuate significantly as a result of changes in the amount of indebtedness outstanding under our revolving credit facility and receivables securitization facility.

Currency Exchange Risk.The functional currency for our Canadian operations is the Canadian dollar. As a result, our future earnings
could be affected by fluctuations in the exchange rate between the U.S. and Canadian dollars. Based upon the level of our Canadian operations during 2007 relative to the company as a whole, a 10 percent change in this exchange rate would not have a
material impact on our earnings. We had no outstanding foreign exchange contracts as of March 31, 2008. We do not engage in purchasing forward exchange contracts for speculative purposes.



|Item 4. | Controls and Procedures
|------- | -----------------------

Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the
Companys reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms, and that such information is accumulated and communicated to management, including the
Companys Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

The Companys management carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures, as defined
in Rules 13a15(e) and 15d15(e) of the Exchange Act, as of March 31, 2008. Based on the evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that the Companys disclosure controls and
procedures were effective as of March 31, 2008.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended March 31, 2008 that materially affected, or are
reasonably likely to materially affect, our internal control over financial reporting.



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##### Table of Contents

PART II. OTHER INFORMATION



|Item 1. | Legal Proceedings
|------- | -----------------

The information set forth under
note 5 to our unaudited condensed consolidated financial statements of this Quarterly Report on Form 10-Q is incorporated by reference in answer to this item.



|Item 1A. | Risk Factors
|-------- | ------------

Our results of operations and
financial condition are subject to numerous risks and uncertainties described in our 2007 Form 10-K, which risk factors are incorporated herein by reference. You should carefully consider these risk factors in conjunction with the other information
contained in this report. Should any of these risks materialize, our business, financial condition and future prospects could be negatively impacted.



|Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds
|------- | -----------------------------------------------------------



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##### Table of Contents

(c)

Purchases of
Equity Securities by the Issuer

The following table provides information about purchases of the Companys common stock by the
Company during the first quarter of 2008:



|                                      |  |                                     |  |                                  |      
|------------------------------------- |  | ----------------------------------- |  | -------------------------------- | -----
|Period                                |  | Total Number ofShares Purchased (1) |  | Average PricePaid per Share/Unit
|January 1, 2008 to January 31, 2008   |  | 3,482                               |  | $                                | 16.76
|February 1, 2008 to February 29, 2008 |  | 1,548                               |  | $                                | 18.70
|March 1, 2008 to March 31, 2008       |  | 14,694                              |  | $                                | 18.72
|                                      |  |                                     |  |                                  |      
|Total                                 |  | 19,724                              |  |                                  |      
|                                      |  |                                     |  |                                  |      



|(1) | The shares were surrendered to the Company by employees in order to satisfy tax withholding obligations upon the vesting of restricted stock and restricted stock units. These shares
were not acquired pursuant to any repurchase plan or program.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

|Item 6. | Exhibits
|------- | --------



|               |  |                                                                                                                                                                                                                                                                                          
|-------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit Number |  | Description of Exhibit                                                                                                                                                                                                                                                                   
|               | 
|3(a)           |  | Amended and Restated Certificate of Incorporation of United Rentals, Inc. (incorporated by reference to Exhibit 3.1 of United Rentals, Inc. Quarterly Report on Form 10-Q for the quarter ended
June 30, 1998)                                                                           
|               | 
|3(b)           |  | Certificate of Amendment, dated September 29, 1998, to the United Rentals, Inc. Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 4.2 to the United
Rentals, Inc. Registration Statement on Form S-3, No. 333-70151, filed on January 6, 1999)     
|               | 
|3(c)           |  | Certificate of Amendment, dated June 7, 2007, to the United Rentals, Inc. Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 of the United Rentals,
Inc. Current Report on Form 8-K filed on June 8, 2007)                                      
|               | 
|3(d)           |  | By-laws of United Rentals, Inc. (amended as of April 4, 2007) (incorporated by reference to Exhibit 3.1 of the United Rentals, Inc. Current Report on Form 8-K filed on April 4, 2007)                                                                                                   
|               | 
|3(e)           |  | Form of Certificate of Designation for Series C Perpetual Convertible Preferred Stock (incorporated by reference to Exhibit 3(f) of the United Rentals, Inc. Quarterly Report on Form 10-Q for the
quarter ended September 30, 2001)                                                     
|               | 
|3(f)           |  | Form of Certificate of Designation for Series D Perpetual Convertible Preferred Stock (incorporated by reference to Exhibit 3(g) of the United Rentals, Inc. Quarterly Report on Form 10-Q for the
quarter ended September 30, 2001)                                                     
|               | 
|3(g)           |  | Form of Certificate of Designation for Series E Junior Participating Preferred Stock (incorporated by reference to Exhibit A of Exhibit 4 of the United Rentals, Inc. Current Report on Form 8-K
filed on October 5, 2001)                                                               
|               | 
|3(h)           |  | Rights Agreement, dated September 28, 2001, between United Rentals, Inc. and American Stock Transfer & Trust Co., as Rights Agent (incorporated by reference to Exhibit 4 of the United
Rentals, Inc. Current Report on Form 8-K filed on October 5, 2001)                               
|               | 
|3(i)           |  | Amended and Restated Certificate of Incorporation of United Rentals (North America), Inc., (incorporated by reference to Exhibit 3.3 of the United Rentals (North America), Inc. Quarterly Report
on Form 10-Q for the quarter ended June 30, 1998)                                      
|               | 
|3(j)           |  | By-laws of United Rentals (North America), Inc., (incorporated by reference to Exhibit 3.4 of the United Rentals (North America), Inc. Quarterly Report on Form 10-Q for the quarter ended
June 30, 1998)                                                                                
|               | 
|3(k)           |  | Agreement and Plan of Merger, dated as of July 22, 2007, among United Rentals, Inc., RAM Holdings, Inc. and RAM Acquisition Corp (incorporated by reference to Exhibit 4.1 of the United
Rentals, Inc. Current Report on Form 8-K filed on July 24, 2007)                                
|               | 
|3(l)           |  | First Amendment to the Rights Agreement, dated as of July 22, 2007, between United Rentals, Inc. and American Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.2 of
the United Rentals, Inc. Current Report on Form 8-K filed on July 24, 2007)                    
|               | 
|10(a)          |  | Amendment, dated as of March 10, 2008, to the Employment Agreement, dated as of June 5, 2006, as amended, between United Rentals, Inc. and Michael J. Kneeland (incorporated by
reference to Exhibit 10.1 to the United Rentals, Inc. Current Report on Form 8-K filed on March 14, 2008)
|               | 
|31(a)*         |  | Rule 13a-14(a) Certification by Chief Executive Officer                                                                                                                                                                                                                                  
|               | 
|31(b)*         |  | Rule 13a-14(a) Certification by Chief Financial Officer                                                                                                                                                                                                                                  
|               | 
|32(a)*         |  | Section 1350 Certification by Chief Executive Officer                                                                                                                                                                                                                                    
|               | 
|32(b)*         |  | Section 1350 Certification by Chief Financial Officer                                                                                                                                                                                                                                    



|* | Filed herewith.
|- | ---------------



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



|       |  |                |  |                      |  |     |  |                                 
|------ |  | -------------- |  | -------------------- |  | --- |  | --------------------------------
|       |  |                |  | UNITED RENTALS, INC.
|       |  |                |  |                     
|Dated: |  | April 29, 2008 |  |                      |  | By: |  | /s/ JOHN J. FAHEY               
|       |  |                |  |                      |  |     |  | John J. Fahey                   
|       |  |                |  |                      |  |     |  | Vice President, Controller      
|       |  |                |  |                      |  |     |  | and Principal Accounting Officer



|       |  |                |  |                                      |  |     |  |                                 
|------ |  | -------------- |  | ------------------------------------ |  | --- |  | --------------------------------
|       |  |                |  | UNITED RENTALS (NORTH AMERICA), INC.
|       |  |                |  |                                     
|Dated: |  | April 29, 2008 |  |                                      |  | By: |  | /s/ JOHN J. FAHEY               
|       |  |                |  |                                      |  |     |  | John J. Fahey                   
|       |  |                |  |                                      |  |     |  | Vice President, Controller      
|       |  |                |  |                                      |  |     |  | and Principal Accounting Officer



31