Wyndham to Increase Legacy Litigation Reserve

Will Result in a Charge to Third Quarter Earnings - Company Affirms Guidance for Third Quarter and F

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. October 14, 2008

SEPTEMBER 17, 2007. Wyndham Worldwide Corporation (NYSE:WYN) reported that it expects to record a net, after-tax charge to earnings of approximately $17 million in the third quarter of 2007 for a legacy litigation matter.

As previously disclosed, in connection with the Company's spin-off from Cendant Corporation (now Avis Budget Group Inc.), the Company assumed 37.5% of liabilities for litigation relating to certain lawsuits in which Cendant is named as the defendant. Avis Budget Group received an adverse order in a litigation matter, for which Wyndham Worldwide is 37.5% responsible. As a result, the Company expects to increase its legacy litigation reserve by approximately $27 million pre-tax, which will result in an approximate $17 million after-tax charge to third quarter earnings. The Company notes that legacy matters have added approximately $30 million pre-tax to its earnings in the first six months of 2007. The Company believes that Avis Budget Group has meritorious defenses to the lawsuit and that the court's ruling was in error. Avis Budget Group has indicated that it will take all reasonable steps necessary to seek a reversal of the court's decision. The Company further believes that any obligations arising from the Cendant legacy litigation will have no material impact on the Company's core businesses.

"Our businesses continue to perform at or above expectations. The strength in our operating performance includes our consumer finance portfolio which, despite the recent adverse environment in the credit markets, continues to perform solidly," said Stephen P. Holmes, Wyndham Worldwide chairman and chief executive officer.

Wyndham Worldwide affirms full year and third quarter 2007 guidance as follows:

o Revenues of $4,340 - $4,480 million

o Adjusted EBITDA of $845 - $860 million, excluding separation and related costs of $10 - $20 million ($6 - $12 million, after-tax) and legacy matters

o Full year depreciation and amortization expense of $160 - $170 million

o Interest expense of $65 - $75 million

o Effective tax rate of 38%, excluding separation and related costs and legacy matters

o Adjusted net income of $372 - $392 million, excluding separation and related costs and legacy matters

o Full year Adjusted EPS of $2.02 - $2.13, excluding separation and related costs and legacy matters, based on weighted average shares of approximately 184 million as assumed on August 1, 2007

o Third quarter Adjusted EPS of $0.70 - $0.73, excluding separation and related costs and legacy matters, based on weighted average shares of approximately 184 million as assumed on August 1, 2007.

The Company expects to report the full details of its third quarter results on October 31, 2007 followed by a webcast conference call.

Financial information discussed in this press release include both GAAP and non-GAAP measures, which include or exclude certain items, or reflect pro forma adjustments, related to the Company's spin-off effective July 31, 2006. These non-GAAP measures differ from reported results and are intended to illustrate what management believes are relevant period-over-period comparisons. Non-GAAP measures are indicated as "Adjusted."

It is not practical to provide a reconciliation of forecasted Adjusted EBITDA and EPS for the full year and third quarter 2007 to the most directly comparable GAAP measures, net income and earnings per share, because certain items cannot be reasonably estimated or predicted at this time. Any of those items could be significant to our financial results.