Real Estate Services, which is expected to account for 39% to 41% of Cendant's estimated 2005 revenues, provides residential real estate services such as employee relocation, mobility and title agency services. Richard A. Smith will be chief executive officer of the group with Cendant's current chairman and CEO, Henry R. Silverman, serving as non-executive chairman. The firm will maintani Parsippany, NJ, as its base of operations.

"It became clear in the past few years that the advantages of focused pure-play companies in the market outweigh the incremental benefits offered by Cendant's hedged portfolio," says the firm's president and chief financial officer, Ronald L. Nelson. Since mid-2004, Cendant has created three focused public companies--Jackson Hewitt, PHH Corp. and Wright Express--through two initial public offerings and one spin-off. This transaction is expected to be effected through three 100% spin-offs in the summer of 2006. The deal is expected to be tax-free for the company and its shareholders. Stock exchange listings have not yet been determined.

"This is the right thing to do, for the right reasons and at the right time," adds Silverman. "Creating four strong and focused pure-play companies is the best way to unlock the full value of Cendant's businesses."