----

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

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

| Delaware                        | 73-1356520          |
|---------------------------------|---------------------|
| (State or other jurisdiction of | (I.R.S. Employer    |
| incorporation or organization)  | Identification No.) |

----

----

DOLLAR 

|   | Page |
|--------|------|

| PART I - FINANCIAL INFORMATION |   |
|--------------------------------|--------|

|   | ITEM 1. | FINANCIAL STATEMENTS (UNAUDITED)  | 4 |
|--------|---------|----------------------------------------|---|

|   | ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF |   |
|--------|---------|-----------------------------------------------|--------|

|   |             | FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 27 |
|--------|--------------------------------------------------------------------|-----------------------------------------------|----|

|   | ITEM 3. | QUANTITATIVE AND QUALITATIVE |   |
|--------|---------|------------------------------|--------|

|   |             | DISCLOSURES ABOUT MARKET RISK | 40 |
|--------|--------------------------------------------------------------------|-------------------------------|----|

|   | ITEM 4. | CONTROLS AND PROCEDURES | 41 |
|--------|---------|-------------------------|----|

| PART II - OTHER INFORMATION |   |
|----------------------------------|--------|

|   | ITEM 1. | LEGAL PROCEEDINGS | 41 |
|--------|---------|-------------------|----|

|   | ITEM 1A. | RISK FACTORS  | 42 |
|--------|----------|--------------------|----|

|   | ITEM 5. | OTHER INFORMATION | 44 |
|--------|---------|-------------------|----|

|   | ITEM 6. | EXHIBITS  | 46 |
|--------|---------|----------------|----|

| SIGNATURES | 47 |
|------------|----|

| INDEX TO EXHIBITS  | 48 |
|-------------------------|----|

|   | · | the impact on our results and liquidity if we become obligated to pay a termination fee to Hertz Global Holdings, Inc. (“Hertz”), which will depend on whether we complete a qualifying business combination transaction within 12 months of the October 1, 2010 termination date of our merger agreement with Hertz, and whether and the extent to which the relevant third party would bear all or any portion of that fee; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | whether Avis Budget Group, Inc. (“Avis”) would obtain regulatory approval to engage in a business combination transaction with us and, if so, the conditions upon which such approval would be granted (including potential divestitures of assets or businesses of either company), whether we and Avis would reach agreement on the terms of such a transaction, whether our stockholders would approve the transaction and whether other conditions to consummation of the transaction would be satisfied or waived; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the risks to our business and prospects pending any future business combination transaction, diversion of management’s attention from day-to-day operations, a loss of key personnel, disruption of our operations, and the impact of pending or future litigation relating to any business combination transaction; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | the risks to our business and growth prospects as a stand-alone company, in light of our dependence on future growth of the economy as a whole to achieve meaningful revenue growth in the key airport and local markets we serve, high barriers to entry in the insurance replacement market, and the impact of our limited financial resources on our ability to finance growth through acquisitions or to expand internationally; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the impact of persistent pricing and demand pressures, particularly in light of the continuing volatility in the global financial and credit markets and concerns about global economic prospects and the timing and strength of a recovery, and whether consumer confidence and spending levels will improve; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | whether ongoing governmental and regulatory initiatives in the United States and elsewhere to stimulate economic growth will be successful; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the impact of pricing and other actions by competitors, particularly as they increase fleet sizes in anticipation of seasonal activity; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to manage our fleet mix to match demand and meet our target for vehicle depreciation costs, particularly in light of the significant increase in the level of risk vehicles (i.e., those vehicles not acquired through a guaranteed residual value program) in our fleet and our exposure to the used vehicle market; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the cost and other terms of acquiring and disposing of automobiles and the impact of conditions in the used vehicle market on our vehicle cost, including the impact on our results of expected increases in our vehicle depreciation costs in 2011 based on our current expectations with respect to the used vehicle market, and our ability to reduce our fleet capacity as and when projected by our plans; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the timing and strength of a recovery in the U.S. automotive industry, particularly in light of our dependence on vehicle supply from U.S. automotive manufacturers; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the effectiveness of actions we take to manage costs and liquidity; |
|--------|--------|---------------------------------------------------------------------|

|   | · | our ability to obtain cost-effective financing as needed (including replacement of asset-backed notes and other indebtedness as it comes due) without unduly restricting operational flexibility; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to comply with financial covenants or to obtain necessary amendments or waivers, and the impact of the terms of any required amendments or waivers, such as potential reductions in lender commitments; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to manage the consequences under our financing agreements of an event of bankruptcy with respect to any of the monoline insurers that provide credit support for our asset-backed financing structures, including Financial Guaranty Insurance Company, which has indicated that it has not satisfied the conditions for effectuating its surplus restoration plan as required by the New York State Insurance Department; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the potential for significant cash tax payments in 2011 and beyond as a result of the reduction in our fleet size, our use of bonus depreciation methods and the resulting impact of our inability to defer gains on the disposition of our vehicles under our like-kind exchange program; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | airline travel patterns, including disruptions or reductions in air travel resulting from industry consolidation, capacity reductions, pricing actions or other events, such as airline bankruptcies; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | local market conditions where we and our franchisees do business, including whether franchisees will continue to have access to capital as needed; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | access to reservation distribution channels; |
|--------|--------|----------------------------------------------|

|   | · | disruptions in the operation or development of information and communication systems that we rely on, including those relating to methods of payment; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the cost of regulatory compliance, costs and other effects of potential future initiatives, including those directed at climate change and its effects, and the costs and outcome of pending litigation; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the impact of other events that can disrupt consumer travel, such as natural and man-made catastrophes, pandemics and actual and perceived threats or acts of terrorism. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

ITEM 1.

Table of Contents

----

| DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES                         |   |
|--------------------------------------------------------------------------------|--------|
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME                                    |   |
| THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009       |   |   |
| (In Thousands Except Per Share Data)                                           |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   | Three Months |   |   | Nine Months |   |
|                                                                           |   | Ended September 30, |   |   | Ended September 30, |   |
|                                                                           |   | (Unaudited) |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| REVENUES:                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|   Vehicle rentals                                                    |   | $ | 425,467 |   |   | $ | 418,665 |   |   | $ | 1,138,029 |   |   | $ | 1,143,172 |   |
|   Other                                                              |   |   | 18,077 |   |   |   | 20,227 |   |   |   | 50,072 |   |   |   | 57,755 |   |
|          Total revenues           |   |   | 443,544 |   |   |   | 438,892 |   |   |   | 1,188,101 |   |   |   | 1,200,927 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Direct vehicle and operating                                       |   |   | 204,207 |   |   |   | 213,412 |   |   |   | 577,430 |   |   |   | 590,102 |   |
|   Vehicle depreciation and lease charges, net                        |   |   | 85,732 |   |   |   | 102,968 |   |   |   | 208,060 |   |   |   | 345,206 |   |
|   Selling, general and administrative                                |   |   | 59,359 |   |   |   | 54,746 |   |   |   | 162,841 |   |   |   | 153,751 |   |
|   Interest expense, net of interest income of                        |   |   |  22,335 |   |   |   |  24,554 |   |   |   |  65,392 |   |   |   |  73,630 |   |
|      $472, $691, $965 and $5,414, respectively   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Long-lived asset impairment                                        |   |   | 703 |   |   |   | 383 |   |   |   | 942 |   |   |   | 644 |   |
|          Total costs and expenses |   |   | 372,336 |   |   |   | 396,063 |   |   |   | 1,014,665 |   |   |   | 1,163,333 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   (Increase) decrease in fair value of derivatives                   |   |   | (6,464 | ) |   |   | (5,569 | ) |   |   | (21,338 | ) |   |   | (20,023 | ) |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                                                     |   |   | 77,672 |   |   |   | 48,398 |   |   |   | 194,774 |   |   |   | 57,617 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME TAX EXPENSE                                                             |   |   | 28,507 |   |   |   | 18,304 |   |   |   | 76,054 |   |   |   | 24,059 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME                                                                     |   | $ | 49,165 |   |   | $ | 30,094 |   |   | $ | 118,720 |   |   | $ | 33,558 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC EARNINGS PER SHARE                                                       |   | $ | 1.72 |   |   | $ | 1.38 |   |   | $ | 4.15 |   |   | $ | 1.55 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED EARNINGS PER SHARE                                                     |   | $ | 1.62 |   |   | $ | 1.29 |   |   | $ | 3.93 |   |   | $ | 1.47 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to condensed consolidated financial statements.                      |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES                 |   |
|------------------------------------------------------------------------|--------|
|                                                                   |   |   |   |   |   |   |
| CONDENSED CONSOLIDATED BALANCE SHEETS                                  |   |
| SEPTEMBER 30, 2010 AND DECEMBER 31, 2009                          |   |
| (In Thousands Except Share and Per Share Data)                         |   |
|                                                                   |   |   |   |   |   |   |
|                                                                   |   | September 30, |   |   | December 31, |   |
|                                                                   |   | 2010 |   |   | 2009 |   |
| ASSETS:                                                                |   | (Unaudited) |   |
|                                                                   |   |   |   |   |   |   |
| Cash and cash equivalents                                              |   | $ | 419,007 |   |   | $ | 400,404 |   |
| Cash and cash equivalents-required minimum balance                     |   |   | 100,000 |   |   |   | 100,000 |   |
| Restricted cash and investments                                        |   |   | 289,602 |   |   |   | 622,540 |   |
| Receivables, net                                                       |   |   | 116,846 |   |   |   | 104,645 |   |
| Prepaid expenses and other assets                                      |   |   | 68,542 |   |   |   | 63,377 |   |
| Revenue-earning vehicles, net                                          |   |   | 1,468,017 |   |   |   | 1,228,637 |   |
| Property and equipment, net                                            |   |   | 91,409 |   |   |   | 96,198 |   |
| Income taxes receivable                                                |   |   | 32,963 |   |   |   | 4,065 |   |
| Intangible assets, net                                                 |   |   | 24,297 |   |   |   | 26,071 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| Total assets                                                           |   | $ | 2,610,683 |   |   | $ | 2,645,937 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |
| LIABILITIES:                                                           |   |   |   |   |   |   |   |   |
| Accounts payable                                                       |   | $ | 51,355 |   |   | $ | 48,366 |   |
| Accrued liabilities                                                    |   |   | 188,300 |   |   |   | 204,340 |   |
| Deferred income tax liability                                          |   |   | 202,487 |   |   |   | 162,923 |   |
| Vehicle insurance reserves                                             |   |   | 117,504 |   |   |   | 108,584 |   |
| Debt and other obligations                                             |   |   | 1,530,329 |   |   |   | 1,727,810 |   |
| Total liabilities                                                      |   |   | 2,089,975 |   |   |   | 2,252,023 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                          |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' EQUITY:                                                  |   |   |   |   |   |   |   |   |
| Preferred stock, $.01 par value:                                       |   |   |   |   |   |   |   |   |
| Authorized 10,000,000 shares; none outstanding                         |   |   |  - |   |   |   |  - |   |
| Common stock, $.01 par value:                                          |   |   |   |   |   |   |   |   |
|  Authorized 50,000,000 shares;                                    |   |   |   |   |   |   |   |   |
| 35,162,725 and 34,951,351 issued, respectively, and                    |   |   |   |   |   |   |   |   |
| 28,737,172 and 28,536,445 outstanding, respectively                    |   |   | 352 |   |   |   | 349 |   |
| Additional capital                                                     |   |   | 938,993 |   |   |   | 932,693 |   |
| Accumulated deficit                                                    |   |   | (174,465 | ) |   |   | (293,185 | ) |
| Accumulated other comprehensive loss                                   |   |   | (16,276 | ) |   |   | (18,374 | ) |
| Treasury stock, at cost (6,425,553 and 6,414,906 shares, respectively) |   |   | (227,896 | ) |   |   | (227,569 | ) |
|   Total stockholders' equity                                      |   |   | 520,708 |   |   |   | 393,914 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                             |   | $ | 2,610,683 |   |   | $ | 2,645,937 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| See notes to condensed consolidated financial statements.              |

----

| DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES                                                                |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                  |   |   |   |   |   |   |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                       |   |
| NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009                                                               |   |
| (In Thousands)                                                                                                        |   |
|                                                                                                                  |   |   |   |   |   |   |
|                                                                                                                  |   | Nine Months |   |
|                                                                                                                  |   | Ended September 30, |   |
|                                                                                                                  |   | (Unaudited) |   |
|                                                                                                                  |   |   |   |   |   |   |
|                                                                                                                  |   | 2010 |   |   | 2009 |   |
|                                                                                                                  |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                 |   |   |   |   |   |   |
| Net income                                                                                                            |   | $ | 118,720 |   |   | $ | 33,558 |   |
| Adjustments to reconcile net income to                                                                                |   |   |   |   |   |   |   |   |
|    net cash provided by operating activities:                                                          |   |   |   |   |   |   |   |   |
|      Depreciation:                                                                           |   |   |   |   |   |   |   |   |
|        Vehicle depreciation                                                        |   |   | 271,232 |   |   |   | 363,622 |   |
|        Non-vehicle depreciation                                                    |   |   | 15,108 |   |   |   | 15,058 |   |
|      Net gains from disposition of revenue-earning vehicles                                  |   |   | (63,214 | ) |   |   | (18,879 | ) |
|      Amortization                                                                            |   |   | 5,472 |   |   |   | 6,155 |   |
|      Performance share incentive, stock option and restricted stock plans                    |   |   | 3,254 |   |   |   | 3,618 |   |
|      Interest income earned on restricted cash and investments                               |   |   | (371 | ) |   |   | (2,859 | ) |
|      Long-lived asset impairment                                                             |   |   | 942 |   |   |   | 644 |   |
|      Provision for (recovery of) losses on receivables                                       |   |   | (743 | ) |   |   | 2,371 |   |
|      Deferred income taxes                                                                   |   |   | 39,089 |   |   |   | (19,694 | ) |
|      Change in fair value of derivatives                                                     |   |   | (21,338 | ) |   |   | (20,023 | ) |
|      Change in assets and liabilities:                                                       |   |   |   |   |   |   |   |   |
|        Income taxes payable/receivable                                             |   |   | (28,813 | )  |   |   | 25,528 |   |
|        Receivables                                                                 |   |   | 4,044 |   |   |   | 13,008 |   |
|        Prepaid expenses and other assets                                           |   |   | (309 | ) |   |   | 8,234 |   |
|        Accounts payable                                                            |   |   | 6,202 |   |   |   | (1,633 | ) |
|        Accrued liabilities                                                         |   |   | 9,084 |   |   |   | 11,893 |   |
|        Vehicle insurance reserves                                                  |   |   | 8,920 |   |   |   | 1,841 |   |
|        Other                                                                       |   |   | 424 |   |   |   | 2,440 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |
|            Net cash provided by operating activities           |   |   | 367,703 |   |   |   | 424,882 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                 |   |   |   |   |   |   |   |   |
| Revenue-earning vehicles:                                                                                             |   |   |   |   |   |   |   |   |
|   Purchases                                                                                                 |   |   | (1,122,825 | ) |   |   | (746,084 | ) |
|   Proceeds from sales                                                                                       |   |   | 659,566 |   |   |   | 1,098,685 |   |
| Change in cash and cash equivalents - required minimum balance                                                        |   |   | - |   |   |   | (100,000 | ) |
| Net change in restricted cash and investments                                                                         |   |   | 333,309 |   |   |   | 37,708 |   |
| Property, equipment and software:                                                                                     |   |   |   |   |   |   |   |   |
|   Purchases                                                                                                 |   |   | (18,046 | ) |   |   | (6,902 | ) |
|   Proceeds from sales                                                                                       |   |   | 461 |   |   |   | 102 |   |
| Acquisition of businesses, net of cash acquired                                                                       |   |   | - |   |   |   | (8 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |
|            Net cash provided by (used in) investing activities |   |   | (147,535 | ) |   |   | 283,501 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   | (Continued) |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |

----

| DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES                                                              |   |
|---------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                |   |   |   |   |   |   |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                     |   |
| NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009                                                                  |   |
| (In Thousands)                                                                                                      |   |
|                                                                                                                |   |   |   |   |   |   |
|                                                                                                                |   | Nine Months |   |
|                                                                                                                |   | Ended September 30, |   |
|                                                                                                                |   | (Unaudited) |   |
|                                                                                                                |   |   |   |   |   |   |
|                                                                                                                |   | 2010 |   |   | 2009 |   |
|                                                                                                                |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                               |   |   |   |   |   |   |
| Debt and other obligations:                                                                                         |   |   |   |   |   |   |
|   Proceeds from vehicle debt and other obligations                                                        |   |   | 299,980 |   |   |   | 43,279 |   |
|   Payments of vehicle debt and other obligations                                                          |   |   | (489,966 | ) |   |   | (750,916 | ) |
|   Payments of non-vehicle debt                                                                            |   |   | (7,500 | ) |   |   | (20,000 | ) |
| Issuance of common shares                                                                                           |   |   | 2,964 |   |   |   | 2,045 |   |
| Excess tax benefit on share-based awards                                                                            |   |   | (327 | ) |   |   | - |   |
| Financing issue costs                                                                                               |   |   | (6,716 | ) |   |   | (6,441 | ) |
|                                                                                                                |   |   |   |   |   |   |   |   |
|            Net cash used in financing activities             |   |   | (201,565 | ) |   |   | (732,033 | ) |
|                                                                                                                |   |   |   |   |   |   |   |   |
| CHANGE IN CASH AND CASH EQUIVALENTS                                                                                 |   |   | 18,603 |   |   |   | (23,650 | ) |
|                                                                                                                |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                                                                                          |   |   |   |   |   |   |   |   |
| Beginning of period                                                                                                 |   |   | 400,404 |   |   |   | 229,636 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| End of period                                                                                                       |   | $ | 419,007 |   |   | $ | 205,986 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| See notes to condensed consolidated financial statements, including Note 14 for supplemental cash flow information. |   |

----

| DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. AND SUBSIDIARIES |
|--------------------------------------------------------|
|                                                   |   |   |   |   |   |   |   |   |   |   |
| NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS   |
| NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009          |
| (Unaudited)                                            |   |   |   |   |

| 1. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
|----|-----------------------------------------------------------|

|   | The accompanying condensed consolidated financial statements include the accounts of Dollar Thrifty Automotive Group, Inc. (“DTG”) and its subsidiaries.  DTG’s significant wholly owned subsidiaries include DTG Operations, Inc., Thrifty, Inc., Dollar Rent A Car, Inc., Rental Car Finance Corp. (“RCFC”) and Dollar Thrifty Funding Corp.  Thrifty, Inc. is the parent company of Thrifty Rent-A-Car System, Inc., which is the parent company of Dollar Thrifty Automotive Group Canada Inc. (“DTG Canada”).  The term the “Company” is used to refer to DTG and subsidiaries, individually or collectively, as the context may require. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The accounting policies set forth in Item 8 - Note 1 of notes to the consolidated financial statements contained in DTG’s Annual Report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission on March 4, 2010, have been followed in preparing the accompanying condensed consolidated financial statements. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The condensed consolidated financial statements and notes thereto for interim periods included herein have not been audited by an independent registered public accounting firm.  The condensed consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.  In the Company’s opinion, it made all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods presented.  Results for interim periods are not necessarily indicative of results for a full year. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | CASH AND INVESTMENTS |
|----|----------------------|

----

| 3. | SHARE-BASED PAYMENT PLANS |
|----|---------------------------|

----

|                                      |   |           |   |    |      |   |   | Weighted-   |   |   |           |   |
|-------------------------------------------|--------|----------------|--------|---------|-----------|--------|--------|-------------|--------|--------|----------------|--------|
|                                      |   |           |   |    | Weighted- |   |   | Average     |   |   | Aggregate      |   |
|                                      |   | Number of      |   |    | Average   |   |   | Remaining   |   |   | Intrinsic      |   |
|                                      |   | Shares         |   |    | Exercise  |   |   | Contractual |   |   | Value          |   |
|                                      |   | (In Thousands) |   |    | Price     |   |   | Term        |   |   | (In Thousands) |   |
|                                      |   |           |   |    |      |   |   |        |   |   |           |   |
| Outstanding at January 1, 2010            |   |           | 2,451  |    |      | $      | 6.55   |        |   |   | 8.11           |   |   | $ | 46,702 |   |
|                                      |   |           |   |    |      |   |   |        |   |   |           |   |   |   |   |   |
| Granted                                   |   |           | -      |    |      |   | -      |        |   |   |           |   |   |   |   |   |
| Exercised                                 |   |           | (165   | )       |      |   | 17.96  |        |   |   |           |   |   |   |   |   |
| Canceled                                  |   |           | (1     | )  |      |   | 19.38  |        |   |   |           |   |   |   |   |   |
|                                      |   |           |   |    |      |   |   |        |   |   |           |   |   |   |   |   |
| Outstanding at September 30, 2010    |   |           | 2,285  |    |      | $      | 5.72   |        |   |   | 7.86           |   |   | $ | 101,449 |   |
|                                      |   |           |   |    |      |   |   |        |   |   |           |   |   |   |   |   |
| Fully vested options at:                  |   |           |   |    |      |   |   |        |   |   |           |   |   |   |   |   |
| September 30, 2010                   |   |           | 551    |    |      | $      | 4.05   |        |   |   | 7.81           |   |   | $ | 25,372 |   |
| Outstanding options at September 30, |   |           |   |    |      |   |   |        |   |   |           |   |   |   |   |   |
| 2010 expected to vest                     |   |           | 1,734  |    |      | $      | 6.25   |        |   |   | 7.88           |   |   | $ | 76,077 |   |
|                                      |   |           |   |    |      |   |   |        |   |   |           |   |   |   |   |   |

|            |   |   | Options Outstanding |   |   | Options Exercisable |   |
|-----------------|--------|--------|---------------------|--------|--------|---------------------|--------|
|            |   |   |                |   |   | Weighted-Average    |   |   | Weighted- |   |   |   |   |   | Weighted- |   |
| Range of        |   |   | Number              |   |   | Remaining           |   |   | Average |   |   | Number |   |   | Average |   |
| Exercise        |   |   | Outstanding         |   |   | Contractual Life    |   |   | Exercise |   |   | Exercisable |   |   | Exercise |   |
| Prices          |   |   | (In Thousands)      |   |   | (In Years)          |   |   | Price |   |   | (In Thousands) |   |   | Price |   |
|            |   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |
| $0.77 - $0.97   |   |   |                | 836    |   |                |   | 8.04 |   |   | $ | 0.95 |   |   |   | 274 |   |   | $ | 0.95 |   |
|            |   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $4.44 - $11.45  |   |   |                | 1,113  |   |                |   | 8.53 |   |   |   | 4.52 |   |   |   | 229 |   |   |   | 4.84 |   |
|            |   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $13.98 - $24.38 |   |   |                | 336    |   |                |   | 5.20 |   |   |   | 21.61 |   |   |   | 48 |   |   |   | 18.29 |   |
|            |   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $0.77 - $24.38  |   |   |                | 2,285  |   |                |   | 7.86 |   |   | $ | 5.72 |   |   |   | 551 |   |   | $ | 4.05 |   |
|            |   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                 |   |           |   |   | Weighted-Average |   |
|--------------------------------------|--------|----------------|--------|--------|------------------|--------|
|                                 |   | Shares         |   |   | Grant-Date       |   |
| Nonvested Shares                     |   | (In Thousands) |   |   | Fair Value       |   |
|                                 |   |           |   |   |             |   |
| Nonvested at January 1, 2010         |   |           | 188    |   |             | $      | 39.75 |   |
| Granted                              |   |           | -      |   |             |   | - |   |
| Vested                               |   |           | (33    | )      |             |   | 56.60 |   |
| Forfeited                            |   |           | (58    | )      |             |   | 56.35 |   |
| Nonvested at September 30, 2010 |   |           | 97     |   |             | $      | 24.38 |   |
|                                 |   |           |   |   |             |   |   |   |

----

|                                 |   |           |   |   | Weighted-Average |   |
|--------------------------------------|--------|----------------|--------|--------|------------------|--------|
|                                 |   | Shares         |   |   | Grant-Date       |   |
| Nonvested Shares                     |   | (In Thousands) |   |   | Fair Value       |   |
|                                 |   |           |   |   |             |   |
| Nonvested at January 1, 2010         |   |           | 94     |   |             | $      | 4.24 |   |
| Granted                              |   |           | 18     |   |             |   | 25.28 |   |
| Vested                               |   |           | (14    | )      |             |   | (6.85 | ) |
| Forfeited                            |   |           | -      |   |             |   | - |   |
| Nonvested at September 30, 2010 |   |           | 98     |   |             | $      | 7.71 |   |
|                                 |   |           |   |   |             |   |   |   |

| 4. | VEHICLE DEPRECIATION AND LEASE CHARGES, NET |
|----|---------------------------------------------|

|                                                |   | Three Months             |   |   | Nine Months         |   |
|-----------------------------------------------------|--------|--------------------------|--------|--------|--------------------------|--------|
|                                                |   | Ended September 30, |   |   | Ended September 30, |   |
|                                                |   |                     |   |   |                     |   |   |   |   |   |   |   |
|                                                |   | 2010                     |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                                |   |                     |   |   |                     |   |   |   |   |   |   |   |
| Depreciation of revenue-earning vehicles            |   | $                        | 95,714 |   |                     | $      | 119,708 |   |   | $ | 271,232 |   |   | $ | 363,622 |   |
| Net gains from disposal of revenue-earning vehicles |   |                     | (9,991 | )      |                     |   | (16,773 | ) |   |   | (63,214 | ) |   |   | (18,879 | ) |
| Rents paid for vehicles leased                      |   |                     | 9      |   |                     |   | 33 |   |   |   | 42 |   |   |   | 463 |   |
|                                                |   |                     |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   | $                        | 85,732 |   |                     | $      | 102,968 |   |   | $ | 208,060 |   |   | $ | 345,206 |   |
|                                                |   |                     |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |

| 5. | EARNINGS PER SHARE |
|----|--------------------|

----

|                                              |   | Three Months             |       |   | Nine Months         |   |
|---------------------------------------------------|--------|--------------------------|------------|--------|--------------------------|--------|
|                                              |   | Ended September 30, |       |   | Ended September 30, |   |
|                                              |   |                     |       |   |                     |   |   |   |   |   |   |   |
|                                              |   | 2010                     |       |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                              |   |                     |       |   |                     |   |   |   |   |   |   |   |
| Net income                                        |   | $                        | 49,165     |   |                     | $      | 30,094 |   |   | $ | 118,720 |   |   | $ | 33,558 |   |
|                                              |   |                     |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS:                                        |   |                     |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|    Weighted average common shares  |   |                     | 28,644,859 |   |                     |   | 21,729,092 |   |   |   | 28,592,794 |   |   |   | 21,592,137 |   |
|                                              |   |                     |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS                                         |   | $                        | 1.72       |   |                     | $      | 1.38 |   |   | $ | 4.15 |   |   | $ | 1.55 |   |
|                                              |   |                     |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Diluted EPS:                                      |   |                     |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|    Weighted average common shares  |   |                     | 28,644,859 |   |                     |   | 21,729,092 |   |   |   | 28,592,794 |   |   |   | 21,592,137 |   |
|                                              |   |                     |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Shares contingently issuable:                     |   |                     |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|   Stock options                         |   |                     | 1,227,828  |   |                     |   | 1,060,374 |   |   |   | 1,224,370 |   |   |   | 647,196 |   |
|   Performance awards                    |   |                     | 174,926    |   |                     |   | 257,682 |   |   |   | 121,816 |   |   |   | 227,501 |   |
|   Employee compensation shares deferred |   |                     | 49,061     |   |                     |   | 66,870 |   |   |   | 49,440 |   |   |   | 124,252 |   |
|   Director compensation shares deferred |   |                     | 222,802    |   |                     |   | 141,092 |   |   |   | 221,042 |   |   |   | 160,504 |   |
|                                              |   |                     |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Shares applicable to diluted                      |   |                     | 30,319,476 |   |                     |   | 23,255,110 |   |   |   | 30,209,462 |   |   |   | 22,751,590 |   |
|                                              |   |                     |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Diluted EPS                                       |   | $                        | 1.62       |   |                     | $      | 1.29 |   |   | $ | 3.93 |   |   | $ | 1.47 |   |

| 6. | RECEIVABLES |
|----|-------------|

|                                             |   | September 30, |    |   | December 31, |   |
|--------------------------------------------------|--------|--------------------|---------|--------|--------------|--------|
|                                             |   | 2010               |    |   | 2009         |   |
|                                             |   |               |    |   |         |   |
| Trade accounts receivable and other              |   | $                  | 71,602  |   |         | $      | 76,304 |   |
| Vehicle manufacturer receivables                 |   |               | 46,798  |   |         |   | 30,194 |   |
| Car sales receivable                             |   |               | 4,068   |   |         |   | 5,677 |   |
|                                             |   |               | 122,468 |   |         |   | 112,175 |   |
| Less:  Allowance for doubtful accounts |   |               | (5,622  | )      |         |   | (7,530 | ) |
|                                             |   | $                  | 116,846 |   |         | $      | 104,645 |   |

----

| 7. | DEBT AND OTHER OBLIGATIONS |
|----|----------------------------|

|                                                         |                                                                      |                                                                                                                | September 30,                                                                                                  |   |                                                                                                                |                                                                                                                 | December 31,                                                                                                        |   |
|--------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|--------|
|                                                         |                                                                      |                                                                                                                | 2010                                                                                                                |   |                                                                                                                |                                                                                                                 | 2009                                                                                                                |   |
|                                                         |                                                                      |                                                                                                                |                                                                                                                |   |                                                                                                                |                                                                                                                 |                                                                                                                |   |
| Vehicle debt and other obligations                           |                                                                      |                                                                                                                |                                                                                                                |   |                                                                                                                |                                                                                                                 |                                                                                                                |   |
| Asset backed medium term notes:                              |                                                                      |                                                                                                                |                                                                                                                |   |                                                                                                                |                                                                                                                 |                                                                                                                |   |
|   Series 2007-1 notes (matures July 2012)          |                                                                      | $                                                                                                                   | 500,000                                                                                                             |   |                                                                                                                | $                                                                                                               |          500,000                                                       |   |
|   Series 2006-1 notes (matures May 2011)           |                                                                      |                                                                                                                |            600,000                                           |   |                                                                                                                |                                                                                                                 |            600,000                                           |   |
|   Series 2005-1 notes (matured June 2010)          |                                                                      |                                                                                                                |                    - |   |                                                                                                                |                                                                                                                 |            400,000                                           |   |
|                                                         |                                                                      |                                                                                                                |         1,100,000                                                           |   |                                                                                                                |                                                                                                                 |         1,500,000                                                           |   |
| Discounts on asset backed medium term notes                  |                                                                      |                    - |                                                                                                                |   |                                                                                                                |                    (5 | )                                                                                                              |
| Asset backed medium term notes, net of discount              |                                                                      |         1,100,000                                                           |                                                                                                                |   |                                                                                                                |         1,499,995                                                            |                                                                                                                |
|                                                         |                                                                      |                                                                                                                |                                                                                                                |   |                                                                                                                |                                                                                                                 |                                                                                                                |   |
| Series 2010-1 variable funding note (matures September 2012) |            200,000 |                                                                                                                |                                                                                                                |   |                    - |                                                                                                                 |
| CAD Series 2010-1 Note (Canadian fleet financing)            |                                                                      |                                                                                                                |             79,704                                      |   |                                                                                                                |                                                                                                                 |                    - |   |
| Limited partner interest in limited partnership              |                                                                      |                                                                                                                |                                                                                                                |   |                                                                                                                |                                                                                                                 |                                                                                                                |   |
|   (Canadian fleet financing)                       |                                                                      |                                                                                                                |                    - |   |                                                                                                                |                                                                                                                 |             69,690                                      |   |
|                                                         |                                                                      |                                                                                                                |                                                                                                                |   |                                                                                                                |                                                                                                                 |                                                                                                                |   |
|   Total vehicle debt and other obligations         |                                                                      |                                                                                                                |         1,379,704                                                           |   |                                                                                                                |                                                                                                                 |         1,569,685                                                           |   |
|                                                         |                                                                      |                                                                                                                |                                                                                                                |   |                                                                                                                |                                                                                                                 |                                                                                                                |   |
| Non-vehicle debt                                             |                                                                      |                                                                                                                |                                                                                                                |   |                                                                                                                |                                                                                                                 |                                                                                                                |   |
| Term Loan                                                    |                                                                      |                                                                                                                |            150,625                                           |   |                                                                                                                |                                                                                                                 |            158,125                                           |   |
|     Total non-vehicle debt               |                                                                      |                                                                                                                |            150,625                                           |   |                                                                                                                |                                                                                                                 |            158,125                                           |   |
|                                                         |                                                                      |                                                                                                                |                                                                                                                |   |                                                                                                                |                                                                                                                 |                                                                                                                |   |
| Total debt and other obligations                             |                                                                      | $                                                                                                                   | 1,530,329                                                                                                           |   |                                                                                                                | $                                                                                                               |       1,727,810                                                                       |   |
|                                                         |                                                                      |                                                                                                                |                                                                                                                |   |                                                                                                                |                                                                                                                 |                                                                                                                |   |

----

----

| 8. | DERIVATIVE FINANCIAL INSTRUMENTS |
|----|----------------------------------|

|                                                    | Fair Values of Derivative Instruments |
|---------------------------------------------------------|---------------------------------------|
|                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    | Asset Derivatives                     |   | Liability Derivatives |
|                                                    | September 30,                    |   | December 31, |   | September 30, |   | December 31, |
|                                                    | 2010                                  |   | 2009 |   | 2010 |   | 2009 |
|                                                    | Balance Sheet Location                |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   |
| Derivatives designated as hedging instruments           |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                 | Prepaid expenses and other assets     |   | $ | 379 |   | Prepaid expenses and other assets |   | $ | - |   | Accrued liabilities |   | $ | 37,335 |   | Accrued liabilities |   | $ | 40,639 |   |
|                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total derivatives designated as hedging instruments     |                                  |   | $ | 379 |   |   |   | $ | - |   |   |   | $ | 37,335 |   |   |   | $ | 40,639 |   |
|                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                 | Prepaid expenses and other assets     |   | $ | 128 |   | Receivables |   | $ | 16 |   | Accrued liabilities |   | $ | 12,913 |   | Accrued liabilities |   | $ | 34,732 |   |
|                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total derivatives not designated as hedging instruments |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |                                  |   | $ | 128 |   |   |   | $ | 16 |   |   |   | $ | 12,913 |   |   |   | $ | 34,732 |   |
|                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total derivatives                                       |                                  |   | $ | 507 |   |   |   | $ | 16 |   |   |   | $ | 50,248 |   |   |   | $ | 75,371 |   |

----

|                                              |   | Amount of (Gain) or Loss Recognized in Income on Derivative |   | Location of (Gain) or Loss Recognized in Income on Derivative |
|---------------------------------------------------|--------|-------------------------------------------------------------|--------|---------------------------------------------------------------|
|                                              |   | Three Months Ended                                          |   |                                                          | Nine Months Ended |   |   |
|                                              |   | September 30,                                          |   |                                                          | September 30, |   |   |
| Derivatives Not Designated as Hedging Instruments |   | 2010                                                        |   |                                                          | 2009 |   |   | 2010 |   |   | 2009 |   |   |
|                                              |   |                                                        |   |                                                          |   |   |   |   |   |   |   |   | Net increase in fair value of |
| Interest rate contracts                           |   | $                                                           | (6,464 | )                                                             |   | $ | (5,569 | ) |   | $ | (21,338 | ) |   | $ | (20,023 | ) | derivatives  |
|                                              |   |                                                        |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                             |   | $                                                           | (6,464 | )                                                             |   | $ | (5,569 | ) |   | $ | (21,338 | ) |   | $ | (20,023 | ) |   |
|                                              |   |                                                        |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                             |   | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) |   |   | Amount of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion) |   | Location of (Gain) or Loss Reclassified from AOCI in Income (Effective Portion) |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|
| Derivatives in Cash Flow Hedging Relationships                                                                                                                                                   |   | 2010                                                                         |   |   | 2009                                                                            |   |                                                                            | 2010 |   |   | 2009 |   |   |
|                                                                                                                                                                                             |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |
| Three Months Ended                                                                                                                                                                               |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |
| September 30,                                                                                                                                                                               |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   | Interest expense, net of |
| Interest rate contracts                                                                                                                                                                          |   | $                                                                            | 1,211  |   |                                                                            | $      | (555                                                                            | ) |   | $ | (3,602 | ) |   | $ | (3,553 | ) | interest income  |
|                                                                                                                                                                                             |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                                                                                            |   | $                                                                            | 1,211  |   |                                                                            | $      | (555                                                                            | ) |   | $ | (3,602 | ) |   | $ | (3,553 | ) |   |
|                                                                                                                                                                                             |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |   |   |   |   |
| Nine Months Ended                                                                                                                                                                           |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |   |   |   |   |
| September 30,                                                                                                                                                                               |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |   |   |   | Interest expense, net of |
| Interest rate contracts                                                                                                                                                                          |   | $                                                                            | 1,695  |   |                                                                            | $      | 6,579                                                                           |   |   | $ | (10,540 | ) |   | $ | (10,327 | ) | interest income  |
|                                                                                                                                                                                             |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                                                                                            |   | $                                                                            | 1,695  |   |                                                                            | $      | 6,579                                                                           |   |   | $ | (10,540 | ) |   | $ | (10,327 | ) |   |
|                                                                                                                                                                                             |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |   |   |   |   |
| Note: Amount of Gain or (Loss) Reclassified from AOCI into income, which was disclosed without the tax effect in the                                                                        |
|           condensed consolidated financial statements for the three and nine months ended September 30, 2009, has been     |
|           modified to conform to the presentation for the three and nine months ended September 30, 2010 on a net of tax basis. |
|                                                                                                                                                                                             |   |                                                                         |   |   |                                                                            |   |                                                                            |   |   |   |   |   |   |   |   |   |   |

| 9. | FAIR VALUE MEASUREMENTS |
|----|-------------------------|

----

|                                                  |   |          |      |   | Fair Value Measurements at Reporting Date Using |    |
|-------------------------------------------------------|--------|---------------|-----------|--------|-------------------------------------------------|---------|
|                                                  |   | Total Fair    |      |   | Quoted Prices in                                |    |   | Significant Other |   |   | Significant |   |
| (in thousands)                                        |   | Value Assets  |      |   | Active Markets for                              |    |   | Observable |   |   | Unobservable |   |
|                                                  |   | (Liabilities) |      |   | Identical Assets                                |    |   | Inputs |   |   | Inputs |   |
| Description                                           |   | at 9/30/10    |      |   | (Level 1)                                       |    |   | (Level 2) |   |   | (Level 3) |   |
|                                                  |   |          |      |   |                                            |    |   |   |   |   |   |   |
| Derivative Assets                                |   | $        |  507 |   |                                            | $  |  - |   |   | $  |   507 |   |   | $  |  - |   |
| Derivative Liabilities                                |   |          | (50,248   | )      |                                            |    | - |   |   |   | (50,248 | ) |   |   | - |   |
| Marketable Securities  (available for sale) |   |          | 296       |   |                                            |    | 296 |   |   |   | - |   |   |   | - |   |
| Deferred Compensation Plan Assets (a)            |   |          | 3,775     |   |                                            |    | - |   |   |   | 3,775 |   |   |   | - |   |
|                                                  |   |          |      |   |                                            |    |   |   |   |   |   |   |   |   |   |   |
| Total                                                 |   | $             | (45,670   | )      |                                            | $       | 296 |   |   | $ | (45,966 | ) |   | $ | - |   |
|                                                  |   |          |      |   |                                            |    |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |

| (a) | The Company also has an offsetting liability related to the Deferred Compensation Plan, which is not disclosed in the table as it is not independently measured at fair value. The liability was not reported at fair value as of the transition, but rather set to equal fair value of the assets held in the related rabbi trust. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                  |   |          |    |   | Fair Value Measurements at Reporting Date Using |   |
|-------------------------------------------------------|--------|---------------|---------|--------|-------------------------------------------------|--------|
|                                                  |   | Total Fair    |    |   | Quoted Prices in                                |   |   | Significant Other |   |   | Significant |   |
| (in thousands)                                        |   | Value Assets  |    |   | Active Markets for                              |   |   | Observable |   |   | Unobservable |   |
|                                                  |   | (Liabilities) |    |   | Identical Assets                                |   |   | Inputs |   |   | Inputs |   |
| Description                                           |   | at 12/31/09   |    |   | (Level 1)                                       |   |   | (Level 2) |   |   | (Level 3) |   |
|                                                  |   |          |    |   |                                            |   |   |   |   |   |   |   |
| Derivative Assets                                     |   | $             | 16      |   |                                            | $      | - |   |   | $ | 16 |   |   | $ | - |   |
| Derivative Liabilities                                |   |          | (75,371 | )      |                                            |   | - |   |   |   | (75,371 | ) |   |   | - |   |
| Marketable Securities  (available for sale) |   |          | 424     |   |                                            |   | 424 |   |   |   | - |   |   |   | - |   |
| Deferred Compensation Plan Assets (a)            |   |          | 1,546   |   |                                            |   | - |   |   |   | 1,546 |   |   |   | - |   |
|                                                  |   |          |    |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                 |   | $             | (73,385 | )      |                                            | $      | 424 |   |   | $ | (73,809 | ) |   | $ | - |   |
|                                                  |   |          |    |   |                                            |   |   |   |   |   |   |   |   |   |   |   |

| (a) | The Company also has an offsetting liability related to the Deferred Compensation Plan, which is not disclosed in the table as it is not independently measured at fair value. The liability was not reported at fair value as of the transition, but rather set to equal fair value of the assets held in the related rabbi trust. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                     |   |     |         |   |       |    |
|----------------------------------------------------------|--------|----------|--------------|--------|------------|---------|
| Debt and other obligations                               |   | Carrying |         |   | Fair Value |    |
| at September 30, 2010                               |   | Value    |         |   | at 9/30/10 |    |
| (in thousands)                                           |   |     |         |   |       |    |
|                                                     |   |     |         |   |       |    |
| Debt:                                                    |   |     |         |   |       |    |
|                                                     |   |     |         |   |       |    |
| Vehicle debt and obligations-floating rates (1)          |   | $        | 1,300,000    |   |       | $       | 1,279,668 |   |
|                                                     |   |     |         |   |       |    |   |   |
| Vehicle debt and obligations-Canadian dollar denominated |   | $   |  79,704 |   |       | $  |  79,704 |   |
|                                                     |   |     |         |   |       |    |   |   |
| Non-vehicle debt - Term Loan                             |   | $        | 150,625      |   |       | $       | 148,366 |   |
|                                                     |   |     |         |   |       |    |   |   |

| Debt and other obligations                               |   | Carrying |      |   | Fair Value  |   |
|----------------------------------------------------------|--------|----------|-----------|--------|-------------|--------|
| at December 31, 2009                                     |   | Value    |      |   | at 12/31/09 |   |
| (in thousands)                                           |   |     |      |   |        |   |
|                                                     |   |     |      |   |        |   |
| Debt:                                                    |   |     |      |   |        |   |
|                                                     |   |     |      |   |        |   |
| Vehicle debt and obligations-floating rates (2)          |   | $        | 1,390,000 |   |        | $      | 1,307,100 |   |
|                                                     |   |     |      |   |        |   |   |   |
| Vehicle debt and obligations-fixed rates                 |   | $        | 110,000   |   |        | $      | 110,408 |   |
|                                                     |   |     |      |   |        |   |   |   |
| Vehicle debt and obligations-Canadian dollar denominated |   | $        | 69,690    |   |        | $      | 69,690 |   |
|                                                     |   |     |      |   |        |   |   |   |
| Non-vehicle debt - Term Loan                             |   | $        | 158,125   |   |        | $      | 143,894 |   |

----

| 10. | COMPREHENSIVE INCOME |
|-----|----------------------|

|                                                     |   | Three Months             |   |   | Nine Months         |   |
|----------------------------------------------------------|--------|--------------------------|--------|--------|--------------------------|--------|
|                                                     |   | Ended September 30, |   |   | Ended September 30, |   |
|                                                     |   |                     |   |   |                     |   |   |   |   |   |   |   |
|                                                     |   | 2010                     |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                                     |   |                     |   |   |                     |   |   |   |   |   |   |   |
| Net income                                               |   | $                        | 49,165 |   |                     | $      | 30,094 |   |   | $ | 118,720 |   |   | $ | 33,558 |   |
|                                                     |   |                     |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap adjustment on 2007-1 Swap, net of tax |   |                     | 1,380  |   |                     |   | (555 | )  |   |   | 2,397 |   |   |   | 6,579 |   |
| Interest rate cap adjustment on 2010-2 Cap, net of tax   |   |                     | (169   | )      |                     |   | - |   |   |   | (702 | ) |   |   | - |   |
| Foreign currency translation adjustment                  |   |                     | 574    |   |                     |   | 1,332 |   |   |   | 403 |   |   |   | 1,978 |   |
|                                                     |   |                     |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                     |   | $                        | 50,950 |   |                     | $      | 30,871 |   |   | $ | 120,818 |   |   | $ | 42,115 |   |
|                                                     |   |                     |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |

| 11. | INCOME TAXES |
|-----|--------------|

----

| 12. | COMMITMENTS AND CONTINGENCIES |
|-----|-------------------------------|

----

| 13. | NEW ACCOUNTING STANDARDS |
|-----|--------------------------|

----

| 14. | SUPPLEMENTAL CASH FLOW DISCLOSURES |
|-----|------------------------------------|

|                                                     |   | Nine Months         |   |
|----------------------------------------------------------|--------|--------------------------|--------|
|                                                     |   | Ended September 30, |   |
|                                                     |   | 2010                     |   |   | 2009 |   |
|                                                     |   | (In Thousands)           |   |
|                                                     |   |                     |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:       |   |                     |   |   |
| Cash paid for:                                           |   |                     |   |   |   |   |
|   Income taxes to taxing authorities           |   | $                        | 65,932 |   |   | $ | 18,042 |   |
|   Interest                                     |   | $                        | 61,262 |   |   | $ | 73,682 |   |
|                                                     |   |                     |   |   |   |   |   |   |
|                                                     |   |                     |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF INVESTING AND FINANCING      |   |                     |   |   |   |   |   |   |
|   NONCASH ACTIVITIES:                          |   |                     |   |   |   |   |   |   |
| Sales and incentives related to revenue-earning vehicles |   |                     |   |   |   |   |   |   |
|   included in receivables                      |   | $                        | 49,988 |   |   | $ | 44,559 |   |
| Purchases of property, equipment and software included   |   |                     |   |   |   |   |   |   |
|   in accounts payable                          |   | $                        | 43     |   |   | $ | 751 |   |
| Purchases of revenue-earning vehicles included in        |   |                     |   |   |   |   |   |   |
|   in accounts payable                          |   | $                        | 27     |   |   | $ | - |   |
|                                                     |   |                     |   |   |   |   |   |   |

----

|                                      |   |                          |    |   |       |   |     |     |   |
|-------------------------------------------|--------|-------------------------------|---------|--------|------------|--------|----------|----------|--------|
|                                      |   | Nine Months              |    |
|                                      |   | Ended September 30, 2009 |    |
|                                      |   | As Previously                 |    |   |       |   |     | As       |   |
|                                      |   | Reported                      |    |   | Adjustment |   |     | Restated |   |
|                                      |   | (In Thousands)                |    |
|                                      |   |                          |    |   |       |   |     |     |   |
| Net cash provided by operating activities |   | $                             | 539,276 |   |       | $      | (114,394 | )        |   | $ | 424,882 |   |
|                                      |   |                          |    |   |       |   |     |     |   |   |   |   |
| Net cash provided by investing activities |   |                          | 169,107 |   |       |   | 114,394  |     |   |   | 283,501 |   |
|                                      |   |                          |    |   |       |   |     |     |   |   |   |   |
| CHANGE IN CASH AND CASH EQUIVALENTS       |   |                          | (23,650 | )      |       |   | -        |     |   |   | (23,650 | ) |
|                                      |   |                          |    |   |       |   |     |     |   |   |   |   |

| 15. | MERGER AND RELATED MATTERS |
|-----|----------------------------|

----

| 16. | SUBSEQUENT EVENTS |
|-----|-------------------|

----

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

Table of Contents

|                                        |   | Three Months             |      |   |   |   |      | Nine Months         |   |       |   |    |
|---------------------------------------------|--------|--------------------------|-----------|--------|--------|--------|-----------|--------------------------|--------|------------|--------|---------|
|                                        |   | Ended September 30, |      |   |   |   |      | Ended September 30, |   |       |   |    |
|                                        |   |                     |      |   |   |   |      | %                        |   |       |   |    |   |   |   |   | % |   |
| U.S. and Canada                             |   | 2010                     |      |   | 2009   |   |      | Change                   |   |       | 2010   |    |   | 2009 |   |   | Change |   |
|                                        |   |                     |      |   |   |   |      |                     |   |       |   |    |   |   |   |   |   |   |
|                                        |   |                     |      |   |   |   |      |                     |   |       |   |    |   |   |   |   |   |   |
| Vehicle Rental Data:                        |   |                     |      |   |   |   |      |                     |   |       |   |    |   |   |   |   |   |   |
|                                        |   |                     |      |   |   |   |      |                     |   |       |   |    |   |   |   |   |   |   |
| Average number of vehicles operated         |   |                     | 108,042   |   |   |   | 106,245   |                     |   |       | 1.7%   |    |   |   | 103,781 |   |   |   | 105,186 |   |   |   | (1.3% | ) |
| Number of rental days                       |   |                     | 8,346,616 |   |   |   | 8,231,903 |                     |   |       | 1.4%   |    |   |   | 23,160,428 |   |   |   | 23,633,380 |   |   |   | (2.0% | ) |
| Vehicle utilization                         |   |                     | 84.0%     |   |   |   | 84.2%     |                     |   | (0.2) p.p. |   |    |   | 81.7% |   |   |   | 82.3% |   |   | (0.6) p.p. |   |
| Average revenue per day                     |   | $                        | 50.97     |   |   | $      | 50.86     |                     |   |       | 0.2%   |    |   | $ | 49.14 |   |   | $ | 48.37 |   |   |   | 1.6% |   |
| Monthly average revenue per vehicle         |   | $                        | 1,313     |   |   | $      | 1,314     |                     |   |       | (0.1%  | )  |   | $ | 1,218 |   |   | $ | 1,208 |   |   |   | 0.8% |   |
| Average depreciable fleet                   |   |                     | 109,129   |   |   |   | 109,105   |                     |   |       | 0.0%   |    |   |   | 104,749 |   |   |   | 107,615 |   |   |   | (2.7% | ) |
| Monthly avg. depreciation (net) per vehicle |   | $                        | 262       |   |   | $      | 315       |                     |   |       | (16.8% | )       |   | $ | 221 |   |   | $ | 356 |   |   |   | (37.9% | ) |
|                                        |   |                     |      |   |   |   |      |                     |   |       |   |    |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Reconciliation of reported GAAP pretax income per the                      |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |
|----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------------------------|--------|--------|--------------------------|--------------|--------|--------|---------|---------------|--------|
| income statement to non-GAAP pretax income:                                |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    | Three Months             |   |   | Nine Months         |         |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    | Ended September 30, |   |   | Ended September 30, |         |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    | 2010                     |   |   | 2009                     |         |   | 2010   |    |          | 2009   |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    | (in thousands)           |   |   | (in thousands)           |         |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |
| Income before income taxes - as reported                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                         | $       | 77,672                   |   |   | $                        | 48,398       |   |   | $       | 194,774       |   |   | $ | 57,617 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| (Increase) decrease in fair value of derivatives                           |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    | (6,464                   | )      |   |                     | (5,569       | )      |   |    | (21,338       | )      |   |   | (20,023 | ) |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Long-lived asset impairment                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    | 703                      |   |   |                     | 383          |   |   |    | 942           |   |   |   | 644 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Pretax income - non-GAAP                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                         | $       | 71,911                   |   |   | $                        | 43,212       |   |   | $       | 174,378       |   |   | $ | 38,238 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Merger-related expenses                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |  11,937             |   |   |                     |  -      |   |   |    |  20,459  |   |   |   |  - |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Non-GAAP pretax income, excluding merger-related expenses             |                                                                                                                                                                                                                                                                                                                                                                                                                                         | $  |  83,848             |   |   | $                   |  43,212 |   |   | $  |  194,837 |   |   | $  |  38,238 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Reconciliation of reported GAAP net income per the                         |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |
| income statement to non-GAAP net income:                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Net income  - as reported                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                         | $       | 49,165                   |   |   | $                        | 30,094       |   |   | $       | 118,720       |   |   | $ | 33,558 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| (Increase) decrease in fair value of derivatives, net of tax (a)           |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    | (3,791                   | )      |   |                     | (3,467       | )      |   |    | (12,513       | )      |   |   | (11,967 | ) |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Long-lived asset impairment, net of tax (b)                                |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    | 429                      |   |   |                     | 174          |   |   |    | 575           |   |   |   | 288 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Net income - non-GAAP                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                         | $       | 45,803                   |   |   | $                        | 26,801       |   |   | $       | 106,782       |   |   | $ | 21,879 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Merger-related expenses, net of tax (c)                               |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |  6,956              |   |   |                     |  -      |   |   |    |  11,921  |   |   |   |  - |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Non-GAAP net income, excluding merger-related expenses                |                                                                                                                                                                                                                                                                                                                                                                                                                                         | $  |  52,759             |   |   | $                   |  26,801 |   |   | $  |  118,703 |   |   | $  |  21,879 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Reconciliation of reported GAAP diluted earnings                           |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |
| per share ("EPS") to non-GAAP diluted EPS:                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| EPS, diluted - as reported                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                         | $       | 1.62                     |   |   | $                        | 1.29         |   |   | $       | 3.93          |   |   | $ | 1.47 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| EPS impact of (increase) decrease in fair value of derivatives, net of tax |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    | (0.13                    | )      |   |                     | (0.15        | )      |   |    | (0.41         | )      |   |   | (0.53 | ) |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| EPS impact of long-lived asset impairment, net of tax                      |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    | 0.01                     |   |   |                     | 0.01         |   |   |    | 0.02          |   |   |   | 0.01 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| EPS, diluted - non-GAAP (d)                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                         | $       | 1.51                     |   |   | $                        | 1.15         |   |   | $       | 3.53          |   |   | $ | 0.96 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| EPS impact of merger-related expenses, net of tax                     |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |  0.23               |   |   |                     |  -      |   |   |    |  0.39    |   |   |   |  - |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| Non-GAAP diluted EPS, excluding merger-related expenses (d)           |                                                                                                                                                                                                                                                                                                                                                                                                                                         | $  |  1.74               |   |   | $                   |  1.15   |   |   | $  |  3.93    |   |   | $  |  0.96 |   |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| (a)                                                                        | The tax effect of the (increase) decrease in fair value of derivatives is calculated using the entity-specific, U.S. federal and blended state tax rate applicable to the derivative instruments which amounts are ($2,673,000) and ($2,102,000) for the three months ended September 30, 2010 and 2009, respectively, and ($8,825,000) and ($8,056,000) for the nine months ended September 30, 2010 and 2009, respectively. |    |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| (b)                                                                        | The tax effect of the long-lived asset impairment is calculated using the tax-deductible portion of the impairment and applying the entity-specific, U.S. federal and blended state tax rate which amount is $274,000 and $209,000 for the three months ended September 30, 2010 and 2009, respectively, and $367,000 and $356,000 for the nine months ended September 30, 2010 and 2009, respectively.                  |    |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| (c)                                                                   | Merger-related expenses include legal, litigation, advisory and other fees related to a potential merger transaction.  The tax effect of the merger-related expenses is calculated using the entity-specific, U.S. federal and blended state tax rate applicable to the merger-related expenses which amounts are $4,981,000 and $8,538,000 for the three months and nine months ended September 30, 2010, respectively.      |    |
|                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                         |    |                     |   |   |                     |         |   |   |    |          |   |   |   |   |   |   |
| (d)                                                                        | Since each category of earnings per share is computed independently for each period, total per share amounts may not equal the sum of the respective categories.                                                                                                                                                                                                                                                                             |    |

----

|                                                                    |   |                     |    |    |                     |   |    |   |   |   |     |   |
|-------------------------------------------------------------------------|--------|--------------------------|---------|---------|--------------------------|--------|---------|--------|--------|--------|----------|--------|
|                                                                    |   | Three Months             |    |    | Nine Months         |   |
|                                                                    |   | Ended September 30, |    |    | Ended September 30, |   |
|                                                                    |   | 2010                     |    |    | 2009                     |   |    | 2010   |   |   | 2009     |   |
|                                                                    |   | (in thousands)           |    |    | (in thousands)           |   |
| Reconciliation of net income to                                         |   |                     |    |    |                     |   |    |   |   |   |     |   |
| Corporate Adjusted EBITDA                                               |   |                     |    |    |                     |   |    |   |   |   |     |   |
|                                                                    |   |                     |    |    |                     |   |    |   |   |   |     |   |
| Net income - as reported                                                |   | $                        | 49,165  |    |                     | $      | 30,094  |   |   | $      | 118,720  |   |   | $ | 33,558 |   |
|                                                                    |   |                     |    |    |                     |   |    |   |   |   |     |   |   |   |   |   |
| (Increase) decrease in fair value of derivatives                        |   |                     | (6,464  | )       |                     |   | (5,569  | )      |   |   | (21,338  | )      |   |   | (20,023 | ) |
| Non-vehicle interest expense                                            |   |                     | 2,464   |    |                     |   | 2,734   |   |   |   | 7,301    |   |   |   | 10,153 |   |
| Income tax expense                                                      |   |                     | 28,507  |    |                     |   | 18,304  |   |   |   | 76,054   |   |   |   | 24,059 |   |
| Non-vehicle depreciation                                                |   |                     | 4,782   |    |                     |   | 4,887   |   |   |   | 15,108   |   |   |   | 15,058 |   |
| Amortization                                                            |   |                     | 1,771   |    |                     |   | 2,135   |   |   |   | 5,472    |   |   |   | 6,155 |   |
| Non-cash stock incentives                                               |   |                     | 842     |    |                     |   | 1,712   |   |   |   | 3,254    |   |   |   | 3,618 |   |
| Long-lived asset impairment                                             |   |                     | 703     |    |                     |   | 383     |   |   |   | 942      |   |   |   | 644 |   |
| Other                                                                   |   |                     | -       |    |                     |   | 3       |   |   |   | (22      | )      |   |   | (5 | ) |
|                                                                    |   |                     |    |    |                     |   |    |   |   |   |     |   |   |   |   |   |
| Corporate Adjusted EBITDA                                               |   | $                        | 81,770  |    |                     | $      | 54,683  |   |   | $      | 205,491  |   |   | $ | 73,217 |   |
|                                                                    |   |                     |    |    |                     |   |    |   |   |   |     |   |   |   |   |   |
|                                                                    |   |                     |    |    |                     |   |    |   |   |   |     |   |   |   |   |   |
| Reconciliation of Corporate Adjusted EBITDA                             |   |                     |    |    |                     |   |    |   |   |   |     |   |   |   |   |   |
| to Cash Flows From Operating Activities                                 |   |                     |    |    |                     |   |    |   |   |   |     |   |   |   |   |   |
|                                                                    |   |                     |    |    |                     |   |    |   |   |   |     |   |   |   |   |   |
| Corporate Adjusted EBITDA                                               |   | $                        | 81,770  |    |                     | $      | 54,683  |   |   | $      | 205,491  |   |   | $ | 73,217 |   |
|                                                                    |   |                     |    |    |                     |   |    |   |   |   |     |   |   |   |   |   |
| Vehicle depreciation, net of gains/losses from disposal                 |   |                     | 85,723  |    |                     |   | 102,935 |   |   |   | 208,018  |   |   |   | 344,743 |   |
| Non-vehicle interest expense                                            |   |                     | (2,464  | )       |                     |   | (2,734  | )      |   |   | (7,301   | )      |   |   | (10,153 | ) |
| Change in assets and liabilities, net of acquisitions, and other        |   |                     | 19,130  |    |                     |   | 10,484  |   |   |   | (38,505  | )      |   |   | 17,075 |   |
|      Net cash provided by operating activities |   | $                        | 184,159 |    |                     | $      | 165,368 |   |   | $      | 367,703  |   |   | $ | 424,882 |   |
|                                                                    |   |                     |    |    |                     |   |    |   |   |   |     |   |   |   |   |   |
| Memo:                                                                   |   |                     |    |    |                     |   |    |   |   |   |     |   |   |   |   |   |
| Net cash provided by (used in) investing activites                 |   | $                        | (15,373 | )       |                     | $      | (40,339 | )      |   | $      | (147,535 | )      |   | $ | 283,501 |   |
| Net cash used in financing activities                              |   | $                        | (19,655 | )  |                     | $      | (81,551 | )      |   | $      | (201,565 | )      |   | $ | (732,033 | ) |
|                                                                    |   |                     |    |    |                     |   |    |   |   |   |     |   |   |   |   |   |

----

|                       |   | Three Months             |      |   |        |   |      |        |   |
|----------------------------|--------|--------------------------|-----------|--------|-------------|--------|-----------|-------------|--------|
|                       |   | Ended September 30, |      |   | $ Increase/ |   |      | % Increase/ |   |
|                       |   | 2010                     |      |   | 2009        |   |      | (decrease)  |   |   | (decrease) |   |
|                       |   | (in millions)            |      |
|                       |   |                     |      |   |        |   |      |        |   |   |   |   |
| Vehicle rentals            |   | $                        | 425.5     |   |        | $      | 418.7     |        |   | $ | 6.8 |   |   |   | 1.6% |   |
| Other                      |   |                     | 18.0      |   |        |   | 20.2      |        |   |   | (2.2 | ) |   |   | (10.6% | ) |
|   Total revenues |   | $                        | 443.5     |   |        | $      | 438.9     |        |   | $ | 4.6 |   |   |   | 1.1% |   |
|                       |   |                     |      |   |        |   |      |        |   |   |   |   |   |   |   |   |
| Vehicle rental metrics:    |   |                     |      |   |        |   |      |        |   |   |   |   |   |   |   |   |
| Number of rental days      |   |                     | 8,346,616 |   |        |   | 8,231,903 |        |   |   | 114,713 |   |   |   | 1.4% |   |
| Average revenue per day    |   | $                        | 50.97     |   |        | $      | 50.86     |        |   | $ | 0.11 |   |   |   | 0.2% |   |
|                       |   |                     |      |   |        |   |      |        |   |   |   |   |   |   |   |   |

|                                             |   | Three Months             |   |   |        |   |   |        |   |
|--------------------------------------------------|--------|--------------------------|--------|--------|-------------|--------|--------|-------------|--------|
|                                             |   | Ended September 30, |   |   | $ Increase/ |   |   | % Increase/ |   |
|                                             |   | 2010                     |   |   | 2009        |   |   | (decrease)  |   |   | (decrease) |   |
|                                             |   | (in millions)            |   |
|                                             |   |                     |   |   |        |   |   |        |   |   |   |   |
| Direct vehicle and operating                     |   | $                        | 204.2  |   |        | $      | 213.4  |        |   | $ | (9.2 | )  |   |   | (4.3% | )  |
| Vehicle depreciation and lease charges, net      |   |                     | 85.7   |   |        |   | 102.9  |        |   |   | (17.2 | ) |   |   | (16.7% | ) |
| Selling, general and administrative              |   |                     | 59.4   |   |        |   | 54.8   |        |   |   | 4.6 |   |   |   | 8.4% |   |
| Interest expense, net of interest income         |   |                     | 22.3   |   |        |   | 24.5   |        |   |   | (2.2 | ) |   |   | (9.0% | )  |
| Long-lived asset impairment                      |   |                     | 0.7    |   |        |   | 0.4    |        |   |   | 0.3 |   |   |   | 83.6% |   |
|   Total expenses                       |   | $                        | 372.3  |   |        | $      | 396.0  |        |   | $ | (23.7 | ) |   |   | (6.0% | ) |
|                                             |   |                     |   |   |        |   |   |        |   |   |   |   |   |   |   |   |
| (Increase) decrease in fair value of derivatives |   | $                        | (6.5   | )      |        | $      | (5.6   | )           |   | $ | (0.9 | )  |   |   | (16.1% | )  |
|                                             |   |                     |   |   |        |   |   |        |   |   |   |   |   |   |   |   |

|   | Ø | Personnel-related expenses decreased $3.8 million.  Approximately $1.6 million of the decrease resulted from a reduced number of employees driven by cost reduction efforts, while the Company also realized a $1.1 million decrease in group insurance expenses due to favorable claims experience and lower personnel levels.  In addition, there was $1.1 million of lower incentive compensation expense in the third quarter of 2010 compared to the third quarter of 2009 due to a difference in the timing of the incentive compensation accrual resulting from a lower proportion of income in the third quarter of 2010 compared to the third quarter of 2009. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Ø | Communications and computer expenses decreased $1.6 million due to cost reduction initiatives. |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | Ø | Vehicle-related expenses decreased $1.3 million resulting primarily from a decrease in maintenance expenses of $4.7 million due to a newer fleet in 2010 compared to 2009 and a $0.6 million reduction in vehicle shuttling expenses. These decreases were partially offset by a $2.0 million increase in tag and tax expenses due to purchases of new vehicles in 2010, a $1.4 million increase in net damages and a $0.9 million increase in gasoline expense resulting from higher average gas prices. This increased gasoline expense is generally recovered in revenues from customers.  All other vehicle-related expenses decreased $0.3 million. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Bad debt expense decreased $0.6 million due to improved collection experience in 2010. |
|--------|--------|----------------------------------------------------------------------------------------|

|   | Ø | Facility and airport concession expenses decreased $0.5 million.  This decrease resulted from lower airport concession fees. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | All other direct vehicle and operating expenses decreased $1.4 million. |
|--------|--------|-------------------------------------------------------------------------|

|   | Ø | Vehicle depreciation expense decreased $24.0 million, primarily resulting from a 16.8% decrease in the average depreciation rate due to significantly improved conditions in the used car market, extended vehicle holding periods, more diversified fleet mix, and process improvements made by the Company in vehicle remarketing practices.  The average depreciable fleet for the third quarter of 2010 remained consistent with the third quarter of 2009. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Net vehicle gains on disposal of risk vehicles (reductions to net vehicle depreciation and lease charges), which effectively represent revisions to previous estimates of vehicle depreciation charges by reducing vehicle depreciation and lease charges, decreased $6.8 million from a $16.8 million gain in the third quarter of 2009 to a $10.0 million gain for the third quarter of 2010.  This decrease in gains on vehicle dispositions resulted primarily from significantly fewer units sold during the third quarter of 2010 and a slightly lower average gain per unit as compared to the third quarter of 2009. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Lease charges for vehicles leased from third parties remained consistent during the third quarters of 2010 and 2009. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | Ø | Merger-related costs incurred in the third quarter of 2010 totaled $11.9 million. |
|--------|--------|-----------------------------------------------------------------------------------|

|   | Ø | Personnel-related expenses decreased $4.1 million primarily related to a $2.2 million decrease in incentive compensation expense due to a difference in the timing of the incentive compensation accrual, and a $1.3 million decrease in performance share expense in 2010 due to the elimination of performance share grants during 2009 and 2010.  All other personnel-related expenses decreased $0.6 million. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Ø | Outsourcing expenses decreased $1.6 million due to fewer IT-related projects in 2010. |
|--------|--------|---------------------------------------------------------------------------------------|

|   | Ø | Outside services expense decreased $0.9 million primarily due to reduced consulting expense. |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | Ø | The change in the market value of investments in the Company’s deferred compensation and retirement plans decreased selling, general and administrative expenses by $0.5 million due to a reduction in the gain on these plans compared to the same period in 2009, which was offset by a corresponding reduction in those investments that is recognized in other revenue and, therefore, did not impact net income. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | All other selling, general and administrative expenses decreased by $0.2 million. |
|--------|--------|-----------------------------------------------------------------------------------|

----

|                       |   | Nine Months         |       |   |        |   |       |        |   |
|----------------------------|--------|--------------------------|------------|--------|-------------|--------|------------|-------------|--------|
|                       |   | Ended September 30, |       |   | $ Increase/ |   |       | % Increase/ |   |
|                       |   | 2010                     |       |   | 2009        |   |       | (decrease)  |   |   | (decrease) |   |
|                       |   | (in millions)            |       |
|                       |   |                     |       |   |        |   |       |        |   |   |   |   |
| Vehicle rentals            |   | $                        | 1,138.0    |   |        | $      | 1,143.2    |        |   | $ | (5.2 | ) |   |   | (0.4% | ) |
| Other                      |   |                     | 50.1       |   |        |   | 57.7       |        |   |   | (7.6 | ) |   |   | (13.3% | ) |
|   Total revenues |   | $                        | 1,188.1    |   |        | $      | 1,200.9    |        |   | $ | (12.8 | ) |   |   | (1.1% | ) |
|                       |   |                     |       |   |        |   |       |        |   |   |   |   |   |   |   |   |
| Vehicle rental metrics:    |   |                     |       |   |        |   |       |        |   |   |   |   |   |   |   |   |
| Number of rental days      |   |                     | 23,160,428 |   |        |   | 23,633,380 |        |   |   | (472,952 | ) |   |   | (2.0% | ) |
| Average revenue per day    |   | $                        | 49.14      |   |        | $      | 48.37      |        |   | $ | 0.77 |   |   |   | 1.6% |   |
|                       |   |                     |       |   |        |   |       |        |   |   |   |   |   |   |   |   |

|                                             |   | Nine Months         |    |   |        |   |    |        |   |
|--------------------------------------------------|--------|--------------------------|---------|--------|-------------|--------|---------|-------------|--------|
|                                             |   | Ended September 30, |    |   | $ Increase/ |   |    | % Increase/ |   |
|                                             |   | 2010                     |    |   | 2009        |   |    | (decrease)  |   |   | (decrease) |   |
|                                             |   | (in millions)            |    |
|                                             |   |                     |    |   |        |   |    |        |   |   |   |   |
| Direct vehicle and operating                     |   | $                        | 577.4   |   |        | $      | 590.1   |        |   | $ | (12.7 | ) |   |   | (2.1% | ) |
| Vehicle depreciation and lease charges, net      |   |                     | 208.1   |   |        |   | 345.2   |        |   |   | (137.1 | ) |   |   | (39.7% | ) |
| Selling, general and administrative              |   |                     | 162.9   |   |        |   | 153.8   |        |   |   | 9.1 |   |   |   | 5.9% |   |
| Interest expense, net of interest income         |   |                     | 65.4    |   |        |   | 73.6    |        |   |   | (8.2 | ) |   |   | (11.2% | ) |
| Long-lived asset impairment                      |   |                     | 0.9     |   |        |   | 0.6     |        |   |   | 0.3 |   |   |   | 46.3% |   |
|   Total expenses                       |   | $                        | 1,014.7 |   |        | $      | 1,163.3 |        |   | $ | (148.6 | ) |   |   | (12.8% | ) |
|                                             |   |                     |    |   |        |   |    |        |   |   |   |   |   |   |   |   |
| (Increase) decrease in fair value of derivatives |   | $                        | (21.3   | )      |        | $      | (20.0   | )           |   | $ | (1.3 | )  |   |   | (6.6% | )  |
|                                             |   |                     |    |   |        |   |    |        |   |   |   |   |   |   |   |   |

|   | Ø | Communications and computer expenses decreased $4.6 million due to cost reduction initiatives. |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | Ø | Personnel-related expenses decreased $4.2 million.  Approximately $3.7 million of the decrease resulted from a reduced number of employees driven by cost reduction efforts, while the Company also realized a $3.2 million decrease in group insurance expense due to favorable claims and lower personnel expenses. These decreases were partially offset by a $2.0 million increase in the vacation accrual due to a related policy change beginning in the first quarter of 2010, coupled with a $0.7 million increase in 2010 incentive compensation expense. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Ø | Bad debt expense decreased $2.9 million due to improved collection experience in 2010 and the bankruptcy of one of the Company’s tour operators during the first quarter of 2009. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Facility and airport concession expenses decreased $0.9 million.  This decrease resulted from decreases in rent expense of $1.5 million primarily due to company-owned store closures, offset by a $0.6 million increase in airport concession fees. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Vehicle-related expenses increased $1.4 million.  This increase resulted from a $7.0 million increase in gasoline expense resulting from higher average gas prices, which is generally recovered in revenues from customers, a $4.6 million increase in vehicle insurance expense primarily due to an increase in expense of $3.0 million related to an unfavorable judgment on a vicarious liability claim that the Company is appealing and an increase of $4.0 million for tag and tax due to purchases of new vehicles in 2010.   These increases were partially offset by an $8.5 million decrease in vehicle maintenance expense primarily resulting from a newer and slightly reduced fleet, a $2.1 million decrease in costs related to the Company’s insurance premium expense, a $2.0 million reduction in vehicle shuttling expenses and a $1.2 million decrease in net vehicle damages resulting from improved damage recovery collections. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | All other direct vehicle and operating expenses decreased $1.5 million. |
|--------|--------|-------------------------------------------------------------------------|

|   | Ø | Vehicle depreciation expense decreased $92.4 million, primarily resulting from a 37.9% decrease in the average depreciation rate due to significantly improved conditions in the used car market, extended vehicle holding periods, more diversified fleet mix, and process improvements made by the Company in vehicle remarketing practices, coupled with a 2.7% decrease in the average depreciable fleet. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Net vehicle gains on disposal of risk vehicles (reductions to net vehicle depreciation and lease charges), which effectively represent revisions to previous estimates of vehicle depreciation charges by reducing vehicle depreciation and lease charges, increased $44.3 million from an $18.9 million gain for the nine months ended September 30, 2009 to a $63.2 million gain for the nine months ended September 30, 2010.  This increase in gains on vehicle dispositions resulted from significantly more units sold during the nine months ended September 30, 2010 and a higher average gain per unit as compared to the nine months ended September 30, 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Lease charges for vehicles leased from third parties decreased $0.4 million for the third quarter of 2010. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | Ø | Merger-related costs incurred in 2010 totaled $20.4 million. |
|--------|--------|--------------------------------------------------------------|

----

|   | Ø | Outsourcing expenses decreased $4.6 million due to fewer IT-related projects in 2010. |
|--------|--------|---------------------------------------------------------------------------------------|

|   | Ø | Outside services expense decreased $2.3 million primarily due to reduced consulting expense. |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | Ø | The change in the market value of investments in the Company’s deferred compensation and retirement plans decreased selling, general and administrative expenses by $1.7 million due to a reduction in the gain on these plans compared to the same period in 2009, which was offset by a corresponding gain on those investments that is recognized in other revenue and, therefore, did not impact net income. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Personnel-related expenses decreased $0.2 million due to a $0.6 million decrease in group insurance, a $0.7 million decrease in performance share expense, and a $0.7 million decrease in stock option expense, offset by a $1.2 million increase in the vacation accrual and a $0.6 million increase in 2010 incentive compensation expense. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | All other selling, general and administrative expenses decreased by $2.5 million. |
|--------|--------|-----------------------------------------------------------------------------------|

----

|                                                                                                                                      |   | Full Year     |        |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|
|                                                                                                                                      |   | 2010          |        |   | 2009 |   |
|                                                                                                                                      |   | (in millions) |        |
| Reconciliation of Pretax income to                                                                                                        |   | (forecasted)  |        |   | (actual) |   |
| Corporate Adjusted EBITDA                                                                                                                 |   |          |        |   |   |   |
|                                                                                                                                      |   |          |        |   |   |   |
| Pretax income (net income plus income tax expense)                                                                                        |   |          | $195 - $215 |   |   | $ | 81 |   |
|                                                                                                                                      |   |          |        |   |   |   |   |   |
| (Increase) decrease in fair value of derivatives (2010 amount is YTD September 2010)                                                 |   |          | (21         | ) |   |   | (29 | ) |
| Non-vehicle interest expense                                                                                                              |   |          | 10          |   |   |   | 13 |   |
| Non-vehicle depreciation                                                                                                                  |   |          | 20          |   |   |   | 19 |   |
| Amortization                                                                                                                              |   |          | 7           |   |   |   | 8 |   |
| Non-cash stock incentives                                                                                                                 |   |          | 4           |   |   |   | 5 |   |
| Long-lived asset impairment                                                                                                               |   |          | 1           |   |   |   | 2 |   |
| Merger-related expenses (a)                                                                                                          |   |          | 24          |   |   |   | - |   |
|                                                                                                                                      |   |          |        |   |   |   |   |   |
| Corporate Adjusted EBITDA, excluding merger-related expenses                                                                              |   |          | $240-$260   |   |   | $ | 99 |   |
|                                                                                                                                      |   |          |        |   |   |   |   |   |
|                                                                                                                                      |   |          |        |   |   |   |   |   |
| (a)  Merger-related expenses include legal, litigation, advisory and other fees related to a potential merger transaction. |   |
|                                                                                                                                      |   |          |        |   |   |   |   |   |

----

----

----

----

ITEM 3.

Table of Contents

----

ITEM 4. 

Table of Contents

ITEM 1. 

Table of Contents

----

ITEM 1A.

Table of Contents

----

----

ITEM 5.

Table of Contents

----

----

| ITEM 6. | EXHIBITS |
|---------|----------|

Table of Contents

| 2.1         | Amendment No. 1, dated September 10, 2010, to the Agreement and Plan of Merger, dated as of April 25, 2010, by and among Hertz Global Holdings, Inc., HDTMS, Inc. and Dollar Thrifty Automotive Group, Inc., filed as the same numbered exhibit with DTG’s Form 8-K, filed September 13, 2010, Commission File No. 1-3647*                                                                                                                                                                                                                |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.225       | Collateral Assignment of Exchange Agreement, dated as of October 28, 2010, among Rental Car Finance Corp., DTG Operations, Inc. and Deutsche Bank Trust Company Americas, as master collateral agent**                                                                                                                                                                                                                                                                                                                                          |
| 4.226       | Note Purchase Agreement, dated as of October 28, 2010, among Rental Car Finance Corp., as seller, Dollar Thrifty Automotive Group, Inc., as master servicer, Saratoga Funding Corp., LLC, Liberty Street Funding LLC, Jupiter Securitization Company LLC, and Windmill Funding Corp, as conduit purchasers, Deutsche Bank AG, New York Branch, The Bank of Nova Scotia, JPMorgan Chase Bank, and The Royal Bank of Scotland plc, as committed purchasers and managing agents, and Deutsche Bank AG, New York Branch, as administrative agent**  |
| 4.227       | Series 2010-3 Supplement to the Amended and Restated Base Indenture, dated as of October 28, 2010, between Rental Car Finance Corp. and Deutsche Bank Trust Company Americas, as trustee**                                                                                                                                                                                                                                                                                                                                                      |
| 4.228       | Master Motor Vehicle Lease and Servicing Agreement (Group VII), dated as of October 28, 2010, among Rental Car Finance Corp., as lessor, Dollar Thrifty Automotive Group, Inc., as guarantor and master servicer, DTG Operations, Inc., as lessee and servicer, and those subsidiaries of Dollar Thrifty Automotive Group, Inc. becoming lessees and servicers thereunder**                                                                                                                                                                     |
| 4.229  | Amendment No. 2 effective October 28, 2010, to Master Exchange and Trust Agreement dated as of July 23, 2001 among Rental Car Finance Corp., DTG Operations, Thrifty, DB Like-Kind Exchange Services Corp., VEXCO, LLC and Deutsche Bank Trust Company Americas**                                                                                                                                                                                                                                                                               |
| 15.39       | Letter from Deloitte & Touche LLP regarding interim financial information**                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 31.69       | Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.70  | Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 32.69  | Certification by the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 32.70  | Certification by the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

SIGNATURES

Table of Contents
|             |   | DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.                                                                               |
|------------------|--------|---------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                |
|             |   |                                                                                                                |
| November 2, 2010 | By:    | /s/  SCOTT L. THOMPSON                                                                                    |   |
|             |   | Scott L. ThompsonPresident, Chief Executive Officer and PrincipalExecutive Officer                        |
| November 2, 2010 | By:    | /s/  H. CLIFFORD BUSTER III                                                                               |   |
|             |   | H. Clifford Buster IIISenior Executive Vice President, Chief Financial Officerand Principal Financial Officer  |

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INDEX TO EXHIBITS

Table of Contents

| 4.225       | Collateral Assignment of Exchange Agreement, dated as of October 28, 2010, among Rental Car Finance Corp., DTG Operations, Inc. and Deutsche Bank Trust Company Americas, as master collateral agent                                                                                                                                                                                                                                                                                                                                          |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.226       | Note Purchase Agreement, dated as of October 28, 2010, among Rental Car Finance Corp., as seller, Dollar Thrifty Automotive Group, Inc., as master servicer, Saratoga Funding Corp., LLC, Liberty Street Funding LLC, Jupiter Securitization Company LLC, and Windmill Funding Corp, as conduit purchasers, Deutsche Bank AG, New York Branch, The Bank of Nova Scotia, JPMorgan Chase Bank, and The Royal Bank of Scotland plc, as committed purchasers and managing agents, and Deutsche Bank AG, New York Branch, as administrative agent  |
| 4.227       | Series 2010-3 Supplement to the Amended and Restated Base Indenture, dated as of October 28, 2010, between Rental Car Finance Corp. and Deutsche Bank Trust Company Americas, as trustee                                                                                                                                                                                                                                                                                                                                                      |
| 4.228       | Master Motor Vehicle Lease and Servicing Agreement (Group VII), dated as of October 28, 2010, among Rental Car Finance Corp., as lessor, Dollar Thrifty Automotive Group, Inc., as guarantor and master servicer, DTG Operations, Inc., as lessee and servicer, and those subsidiaries of Dollar Thrifty Automotive Group, Inc. becoming lessees and servicers thereunder                                                                                                                                                                     |
| 4.229  | Amendment No. 2 effective October 28, 2010, to Master Exchange and Trust Agreement dated as of July 23, 2001 among Rental Car Finance Corp., DTG Operations, Thrifty, DB Like-Kind Exchange Services Corp., VEXCO, LLC and Deutsche Bank Trust Company Americas                                                                                                                                                                                                                                                                               |
| 15.39       | Letter from Deloitte & Touche LLP regarding interim financial information                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 31.69       | Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.70  | Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 32.69  | Certification by the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 32.70  | Certification by the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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