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China Auto Rental Received 200 million USD Investment from Warburg Pincus Group

Release time: 2012.7.10

July 9, 2012 China Auto Rental and Warburg Pincus jointly announced that Warburg Pincus will make $200 million of equity investment in China Auto Rental. This is one more large-scale strategic funding China Auto Rental has obtained following the investment from Legend Holdings in August 2010. It is also the largest single equity investment in domestic car industry by far.

China Auto Rental was founded in September 2007 and headquartered in Beijing. After five years since establishment, the company has become China's largest car rental service provider. According to Roland Berger survey, as China's largest car rental service provider, China Auto Rental has an indisputable leadership in terms of fleet size, network coverage, market share, and operating income. As of June 30, 2012, China Auto Rental's fleet size has reached approximately 32,000, larger than the aggregate fleet size of the next 10 largest competitors. China Auto Rental is also the only car rental company with complete coverage of all provinces and provincial level municipalities in 66 cities and 52 major airports, nearly 600 rental outlets across China.

Warburg Pincus is a leading global private equity investment company. Established more than 40 years ago, Warburg Pincus has invested more than $45 billion in over 675 companies in more than 35 countries around the world. The firm’s strategy combines deep industry expertise and local market experience; the flexibility to support all stages of company development; a long-term investment horizon; and fully aligned interests among their portfolio company management, limited partners and general partners. Warburg Pincus first invested in China in 1994. It has invested in a number of industry leading companies.

In August 2010 China Auto Rental received 1 billion RMB of investment and multi-faceted support from Legend Holdings. With the management, operating, cost and financial advantages, China Auto Rental rapidly expanded its fleet size and service network, became the first to improve industry service standards in multiple ways, and firmly remains the leader of the domestic car industry. The Warburg Pincus investment is expected to further strengthen the leadership of China Auto Rental in the domestic car rental industry.

China Auto Rental Chairman of the Board and CEO Mr. Lu Zhengyao said, "Warburg Pincus is a global leading private equity fund, with rich expertise and excellent investment performance. Their investment shows their confidence in our existing business performance and future potentials. It will further strengthen our shareholding force, pushing us to leap forward in scale, brand, product and services. We are very confident in bringing good-quality and cost-saving car hire service to our customers, and promote the development of China's car rental industry.

Warburg Pincus Managing Director, Mr. David Li said, “Warburg Pincus has watched China Auto Rental for long, China Auto Rental not only has a good brand, strong customer base and excellent management experience, also has a very strong shareholder background and management team. Warburg Pincus can bring effective support to China Auto Rental in terms of branding, capital, corporate management and global resources. Legend Holdings is one of the most successful enterprises since China's reform and opening up. For 28 years, Legend Holdings not only discovered and formed a set of Chinese enterprise management concepts and methods, but also led and cultivated a large number of influential and outstanding enterprises. Legend Capital is the earliest institutional investor of China Auto Rental. It is a subsidiary company of Legend Holdings. We feel honored with this opportunity to cooperate with Legend Holdings. Warburg Pincus has good confidence in China Auto Rental's prospects. This strong alliance and joint efforts from the team and shareholders will further strengthen China Auto Rental's leading position in the industry, make it customers' first choice of car rental service in China.”

Legend Holdings said, "Warburg Pincus is one of the world's leading private equity funds, and is one of the first international private equity funds to enter China. During its more than ten-year experience in China, it successfully invested and cultivated a number of outstanding enterprises. China's car rental industry is in rapid development, as an industry leader China Auto Rental has good market performance and development potential. We very much welcome Warburg Pincus to join us, and look forward to a pleasant cooperation in the development of China Auto Rental. Legend Holdings will continue to support China Auto Rental, to make it the best car rental company in China.”

Legend Capital Managing Director, Director of China Auto Rental Mr. Liu Erhai said: “The investment from Warburg Pincus will help boost the development of China Auto Rental. Mr. Lu and the management team have very clear vision for the company, and they learn fast. We believe that Mr. Lu will lead the company to keep its good developing pace, bring quality service to consumers and good returns to investors.”