MICHAEL C. LEWIS NAMED PRESIDENT AND GENERAL MANAGER OF FIRST FLEET CORPORATION

JEFF SMITH NAMED SENIOR VICE PRESIDENT, NORTH AMERICAN TRUCK SALES

Sparks, Maryland – March 14, 2006 –PHH Arval, a subsidiary of PHH Corporation [NYSE: PHH], has announced that Michael C. Lewis has been named president and general manager of First Fleet Corporation, a PHH Arval subsidiary company. In addition, Lewis has been named senior vice president of truck strategy at PHH Arval to facilitate the company’s overall North American truck growth initiative. He will also be a member of the PHH Arval senior leadership team.

George J. Kilroy, president and CEO of PHH Arval, said, “The promotion of Mike Lewis to leadership positions at First Fleet and PHH Arval will allow us to more effectively leverage the capabilities, client base, marketing, and industry contacts of both companies in the expanding truck market.”

 PHH Arval acquired Fort Lauderdale, FL-based First Fleet Corporation, a national leader of asset management, financial, and operational support to the nation’s private truck fleets, in 2004. Mike Lewis joined First Fleet Corporation in 2001 as executive vice president. He has played a key role in the company’s continuous growth and strategic positioning in the market, the transformation of its business model, and the innovation and design of its products. In his new roles as president and general manager of First Fleet and senior vice president at PHH Arval, Lewis is responsible for heading up a comprehensive, integrated PHH Arval truck strategy

 John J. Flynn, founder and former president and chief executive officer of First Fleet, recently left after a contractual two year transition period following the acquisition.  He provided advice and guidance to PHH Arval concerning the truck fleet business during that time.

 In a related move, Jeff Smith, senior vice president at PHH Arval, has taken on the newly-created position of senior vice president of North American truck sales. He will be responsible for unifying the strategy and capabilities of all of PHH Arval’s truck and equipment sales channels, including PHH Arval United States and Canada, PHH Equipment Leasing, and First Fleet Corporation.

About PHH Arval

PHH Arval is the second largest commercial fleet management company² in North America. PHH Arval provides outsourced fleet management solutions to corporate clients, including nearly one-third of the Fortune 500 companies, and government agencies. Through consultative expertise, flexible customer service, and award-winning Internet technology, PHH Arval helps clients reduce costs and increase productivity. For more information, visit www.phharval.com, or call 800 ONLY PHH.

About PHH Corporation

Headquartered in Mount Laurel, New Jersey, PHH Corporation is a leading outsource provider of mortgage and vehicle fleet management services. Its subsidiary, PHH Mortgage, is one of the top ten retail originators of residential mortgages in the United States¹, and its subsidiary, PHH Arval, is the second-largest fleet management services provider in the United States and Canada². For additional information about the company and its subsidiaries please visit our Web site at www.phh.com. 

¹ Inside Mortgage Finance, February 2006

²Automotive Fleet Fact Book, June 2005