Danbury, CT, March 15, 2007 – GE Capital Solutions, the business-to-business leasing, financing and asset management unit of General Electric Co. (NYSE:GE) and The Blackstone Group, through its affiliates, today agreed to acquire PHH Corporation (NYSE:PHH) in an all-cash transaction for $31.50 per share or approximately $1.8 billion.

Headquartered in Mount Laurel, NJ, PHH Corporation comprises PHH Arval, a North American fleet management services provider, and PHH Mortgage, a retail originator and servicer of residential mortgages in the United States. PHH Corporation will be purchased by GE, which will retain PHH Arval and sell PHH Mortgage to Blackstone immediately after closing.

Based in Sparks, MD, and with approximately $5 billion in assets, PHH Arval provides outsourced vehicle fleet management solutions to corporate clients, including nearly one-third of the Fortune 500 companies. Through consultative expertise, flexible customer service, and award-winning Internet technology, PHH Arval helps clients reduce costs and increase productivity in managing their fleets. PHH Arval has been serving the fleet industry for more than sixty years.

"We believe the integrated financing and services we offer can help customers optimize fleet performance by helping them acquire, manage and sell company vehicles," said Richard Laxer, president and CEO, GE Capital Solutions. “Combining with PHH will enable us to provide our customers with a greater level of service to meet their growing needs and challenges.”

“The fleet management industry is changing rapidly, and issues such as the environment, safety, telematics, global reach and continued cost effectiveness are increasingly important,” said George J. Kilroy, president and CEO of PHH Arval. “PHH Arval and GE together can bring the focus needed for these opportunities to expand the impact of fleet management and create measurable value for our customers.”

“Our businesses share a common commitment to customer service, innovation and using technology to maximize the value of our customers’ fleets. The combination of our businesses will allow us to better serve our customers in achieving their sales, service and delivery performance goals,” added Bob Mitchell, president and CEO of GE Capital Solutions, Fleet Services. The acquisition is subject to PHH shareholder and regulatory approvals and other closing conditions. It is expected to close in the third quarter of 2007.

Lehman Brothers advised GE and Blackstone on this transaction. JP Morgan also served as an advisor to Blackstone. Legal representation was provided by Weil, Gotshal, & Manges LLP and Simpson Thacher & Bartlett LLP to GE and Blackstone, respectively.

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 States and its subsidiary, PHH Arval, is a leading fleet management services provider in the United States and Canada. For additional information about the company and its subsidiaries, visit www.phh.com.

About The Blackstone Group

The Blackstone Group, a global private investment and advisory firm, was founded in 1985. Blackstone’s Private Equity arm has a long track record investing in the financial services sector and is currently investing an $18 billion private equity fund. In addition to Private Equity, Blackstone’s other core businesses include, Private Real Estate Investing, Corporate Debt Investing, Hedge Funds, Mutual Fund Management, Private Placement, Marketable Alternative Asset Management and Investment Banking Advisory Services. Further information is available at www.blackstone.com.

About GE Capital Solutions

GE Capital Solutions, Fleet Services (www.gefleet.com) based in Eden Prairie, Minnesota, is a global fleet management company. It is part of GE Capital Solutions and has operations in the United States, Canada, Europe, Japan, Australia and New Zealand.

GE Capital Solutions (www.ge.com/capitalsolutions) provides leasing, lending and capital investment products and services to help business customers grow. It has over $100 billion in assets, serves more than a million clients around the world and is headquartered in Danbury, Connecticut.

GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and more than 300,000 people worldwide. For more information, visit www.ge.com.