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Wyndham Worldwide Reports Fourth Quarter and Full Year 2008 Results
    - Fourth quarter adjusted diluted EPS of $0.47, up 2% from 2007

    - Full year 2008 adjusted diluted EPS of $2.18, up 3% from 2007

PARSIPPANY, N.J., Feb. 13 /PRNewswire-FirstCall/ -- Wyndham Worldwide Corporation (NYSE: WYN) today announced results for the three months and year ended December 31, 2008.

FOURTH QUARTER and FULL YEAR 2008 HIGHLIGHTS:

    During the fourth quarter of 2008, the Company incurred significant
non-cash goodwill and other impairment charges, restructuring charges,
currency conversion losses related to the transfer of cash from our Venezuela
operations and some positive legacy adjustments.  The following table reflects
these special items and provides a comparison to similarly adjusted results
for 2007:


                                  Fourth Quarter 2008   Fourth Quarter 2007
                                ---------------------  ---------------------
    (In millions, except per    After-tax   Per Share  After-tax   Per Share
     share)                     ---------------------  ---------------------


    Net Income (Loss)             $(1,356)     $(7.63)      $104       $0.58
                                   ------      ------     ------      ------
    Special Items:
     Goodwill and Other
      Impairments                   1,378        7.75          -           -
     Restructuring Costs               45        0.25          -           -
     Currency Conversion Losses        24        0.14          -           -
     Legacy Adjustments                (7)      (0.04)       (21)      (0.12)
                                    -----       -----      -----       -----
    Total Special Items             1,440        8.10        (21)      (0.12)
                                    -----       -----      -----       -----

    Adjusted Net Income               $84       $0.47        $83       $0.46
                                    -----       -----      -----       -----

"There are several special items in the fourth quarter results for 2008, including a goodwill impairment charge, restructuring costs and foreign currency conversion losses. If you remove those items, Wyndham Worldwide produced operating income growth in the fourth quarter and full year 2008. These positive operating results reflect our resilient business model and proactive efforts by the management team to reduce costs, improve productivity and grow market share," said Stephen P. Holmes, Chairman and CEO, Wyndham Worldwide.

    --  On an adjusted basis, fourth quarter 2008 net income and earnings per
        share increased 1% and 2%, respectively, compared with 2007.
    --  Fourth quarter revenues of $911 million declined by 12% compared with
        2007, reflecting a significant and deliberate slowdown of the vacation
        ownership business implemented during the quarter and increased loan
        loss provision, coupled with an adverse foreign currency effect due to
        the strengthening U.S. dollar.

    --  The Company incurred a non-cash goodwill impairment charge of $1.3
        billion related to the adverse financial markets and the previously
        announced reduction of its vacation ownership business.  This goodwill
        impairment charge has no impact on the Company's cash position,
        liquidity or credit agreements.

    --  Fourth quarter adjusted net income was $84 million, or $0.47 diluted
        earnings per share, excluding the special items (as detailed above).
        Fourth quarter reported net loss was $1.4 billion or a loss of $7.63
        per share primarily driven by the $1.3 billion non-cash goodwill
        impairment charge.

    --  Lodging opened over 19,000 rooms in the fourth quarter of 2008, ending
        the year with net growth of 8% (including the acquisition of the
        Microtel and Hawthorn brands) and grew its pipeline by almost 6,000
        rooms to approximately 111,000, up 5% from prior year.  Over 55% of
        this pipeline is new construction and the majority of the properties
        scheduled to open in 2009 have already secured financing or are under
        construction.

    --  Full-year 2008 revenues were approximately $4.3 billion, essentially
        flat compared to 2007, despite the slow-down of the vacation ownership
        business implemented in the fourth quarter.

    --  Full-year 2008 adjusted net income was $388 million, or $2.18 diluted
        earnings per share, excluding special items.  Full year reported net
        loss was $1.1 billion or a loss of $6.05 per share.

FOURTH QUARTER 2008 OPERATING RESULTS

Revenues for the fourth quarter of 2008 were $911 million, down 12% over the same period in 2007, primarily reflecting the reduction of the vacation ownership business and increased loan loss provision, as well as the unfavorable foreign currency impact due to the strengthening dollar in the vacation exchange and rentals business.

Reported net loss for the fourth quarter of 2008 was $1.4 billion, or a loss of $7.63 per share, compared with net income of $104 million, or $0.58 diluted earnings per share, for the fourth quarter of 2007. 2008 results include $1.4 billion of non-cash asset impairment charges.

The Company recorded a non-cash charge of $1.3 billion to reduce the value of its goodwill related to the vacation ownership business. This charge has no impact on the Company's cash position, liquidity or credit agreements.

Also included in 2008 fourth quarter results are the after-tax impacts of $45 million in restructuring costs, $41 million of other asset impairments, currency conversion losses related to the transfer of cash from our Venezuela operations of $24 million and the net benefit from $7 million of legacy adjustments.

Adjusted net income for the fourth quarter of 2008 was $84 million, or $0.47 diluted earnings per share, compared with adjusted net income of $83 million, or $0.46 diluted earnings per share, for the fourth quarter of 2007. Fourth quarter 2007 adjusted earnings per share excludes the after-tax impact of a net benefit of $21 million legacy adjustments.

On an adjusted basis, fourth quarter 2008 net income and earnings per share increased 1% and 2%, respectively, compared with 2007.

FULL YEAR 2008 OPERATING RESULTS

Revenues for full year 2008 were $4.3 billion essentially flat compared with 2007 revenues of $4.4 billion.

    --  Lodging revenues grew 4% primarily due to incremental international
        properties and the Microtel and Hawthorn brands acquisition, which
        offset a 2% decline in worldwide revenue per available room (RevPAR).

    --  Vacation Exchange and Rentals revenues increased 3% compared with full
        year 2007, reflecting the overall full year favorable impact of
        foreign currency along with increases in average vacation exchange
        members and average price per vacation rental. This was partly offset
        by declines in the number of vacation rental transactions and average
        annual dues and exchange fees per member.

    --  Vacation Ownership full year 2008 net revenues decreased 6%,
        reflecting a higher provision for loan losses, an increase in deferred
        revenue and the deliberate slowdown in the sales pace which was
        partially offset by increased property management fees and higher
        consumer finance income.

Net loss for the full year 2008 was $1.1 billion, or a loss of $6.05 per share, compared with net income of $403 million, or $2.20 diluted earnings per share, for full year 2007.

On an adjusted basis, net income for the full year 2008 was $388 million, or $2.18 diluted earnings per share, compared with adjusted net income of $387 million, or $2.12 diluted earnings per share, for full year 2007. 2008 adjusted diluted earnings per share excludes the after-tax impacts of the following special items: a $1.3 billion non-cash goodwill impairment charge for Vacation Ownership, $58 million in other non-cash impairment charges, $49 million in restructuring costs to reduce overhead and streamline operations, a $24 million cash charge due to currency conversion losses related to the transfer of cash from our Venezuela operations and the net benefit of $6 million legacy adjustments. 2007 adjusted diluted earnings per share excludes the after-tax impact of $10 million of separation and related costs and a net benefit of $26 million legacy adjustments. On an adjusted basis, full year 2008 net income and diluted earnings per share were flat and up 3%, respectively, compared with 2007.

BUSINESS UNIT RESULTS

Lodging (Wyndham Hotel Group)

Revenues were $170 million in the fourth quarter of 2008, a decline of 3% compared with the fourth quarter of 2007, primarily reflecting a decline in worldwide RevPAR and lower property management reimbursable revenues, partly offset by higher revenues resulting from the July 2008 Microtel and Hawthorn brands acquisition and incremental international properties.

In constant currency, system-wide RevPAR decreased 6.4%, reflecting declines of 9.3% and 1.6% in domestic and international RevPAR, respectively. Including the impact of foreign currency, RevPAR declined 9.2% in the fourth quarter of 2008.

Property management reimbursable revenues were $21 million and marketing/reservation revenues, including Wyndham Rewards revenues, were $63 million in the fourth quarter of 2008, compared with $28 million and $65 million, respectively, in the fourth quarter of 2007; these items contribute little, if any, margin.

Fourth quarter 2008 EBITDA was $38 million, a 22% decline compared with the fourth quarter of 2007, primarily driven by a $16 million non-cash impairment charge and a decline in worldwide RevPAR, partly offset by cost containment initiatives. Excluding the impairment charge, adjusted fourth quarter 2008 EBITDA would have been $54 million, a 10% increase over the prior year.

As of December 31, 2008, the Company's hotel system consisted of approximately 592,900 rooms and 7,040 properties, of which 21% were international, with a development pipeline of approximately 990 hotels and 111,000 rooms, of which 55% were new construction and 42% were international.

Vacation Exchange and Rentals (Group RCI)

Revenues were $250 million in the fourth quarter of 2008, an 11% decrease compared with the fourth quarter of 2007, reflecting a decline in exchange transactions and lower average pricing due to transactional mix and unfavorable foreign currency. In constant currency, revenues decreased 3%.

Vacation rental revenues were $113 million, a 10% decrease compared with the fourth quarter of 2007. Excluding the unfavorable impact of foreign currency translation, net revenues generated from rental transactions and related services were flat.

Annual dues and exchange revenues were $101 million, a 9% decline compared with the fourth quarter of 2007, or a 3% decrease excluding the unfavorable effect of foreign currency translation. The results, excluding foreign currency, reflect a 6% decline in revenue per member, partially offset by a 3% increase in the average number of members.

Other ancillary revenues were $36 million, a 16% decrease compared with the fourth quarter of 2007, reflecting lower travel service revenues and an unfavorable foreign currency translation impact.

Fourth quarter 2008 EBITDA was ($4) million compared with fourth quarter 2007 EBITDA of $56 million, reflecting $24 million of currency conversion losses related to the transfer of cash from our Venezuela operations, $21 million of non-cash impairment charges relating to intangible and other fixed assets, a $15 million non-cash impairment of a non-performing investment and $7 million of restructuring costs. Excluding the above mentioned special items adjusted fourth quarter EBITDA was $63 million, a 13% increase over the prior year, this includes $10 million of net favorable foreign currency impact.

Vacation Ownership (Wyndham Vacation Ownership)

Gross Vacation Ownership Interest (VOI) sales were $432 million for the fourth quarter of 2008, down 11% compared with the fourth quarter of 2007. This decrease was primarily driven by the previously announced realignment initiative that included a refocusing of the Company's sales and marketing efforts resulting in fewer tours.

Consumer finance revenues increased $16 million to $112 million in the fourth quarter of 2008, up 17% compared with the fourth quarter of 2007, reflecting continued growth in the portfolio.

Reported revenues were $492 million in the fourth quarter of 2008, down 15% compared with the fourth quarter of 2007, primarily reflecting a higher provision for loan losses, lower tour flow and volume per guest (VPG) due to the reduction of the business. During the fourth quarter of 2008, the Company recognized $14 million of previously deferred revenue, while in the fourth quarter of 2007 reported revenues were reduced by $21 million of deferred revenue under the percentage-of-completion method of accounting.

EBITDA for the fourth quarter of 2008 was a loss of $1.3 billion, compared with earnings of $99 million in the fourth quarter of 2007, driven by the $1.3 billion non-cash goodwill impairment charge. Excluding $66 million of restructuring costs and $1.3 billion of impairment charges, adjusted fourth quarter 2008 EBITDA was $91 million or down 8% versus the prior year.

Other Items

Interest expense increased $5 million to $22 million during the fourth quarter of 2008 compared with the fourth quarter of 2007 reflecting higher debt and lower capitalized interest due to less vacation ownership development. Interest income for the quarter was $4 million, a $2 million increase from the comparable prior year period. Depreciation and amortization rose $3 million to $47 million.

    Balance Sheet Information as of December 31, 2008:
    --  Cash and cash equivalents of approximately $135 million compared with
        approximately $210 million at December 31, 2007
    --  Vacation ownership contract receivables, net, of $3.3 billion compared
        with $2.9 billion at December 31, 2007
    --  Vacation ownership and other inventory of approximately $1.3 billion
        compared with approximately $1.2 billion at December 31, 2007
    --  Securitized vacation ownership debt of $1.8 billion compared with $2.1
        billion at December 31, 2007
    --  Other debt of $2.0 billion, compared with $1.5 billion at December 31,
        2007, resulting in borrowing capacity on revolving credit facility of
        approximately $290 million compared with $750 million as of December
        31, 2007

A schedule of debt is included in the financial tables section of this press release.

Outlook

Given the disruptions in the global economy and capital markets, and uncertainty about how these will impact employment, consumer spending and other macroeconomic drivers, guidance related to Wyndham Worldwide's 2009 performance is subject to higher than normal levels of uncertainty. The following guidance reflects assumptions used for internal planning purposes. If economic conditions improve or deteriorate materially from current levels, these assumptions and our guidance may change materially.

For the first quarter of 2009, the Company expects adjusted EPS of $0.35 - $0.40 based on weighted average shares of approximately 178 million.

    The Company's full-year 2009 guidance is:
    --  Revenues of $3.5 - $3.9 billion
    --  Adjusted EBITDA of $760 - $810 million
    --  Depreciation and amortization expense of $185 - $195 million
    --  Interest expense, net of $80 - $90 million
    --  Effective tax rate of approximately 39%
    --  Adjusted net income of $289 - $331 million
    --  Adjusted EPS of $1.61 - $1.85 based on weighted average shares of
        approximately 179 million

All guidance excludes legacy items and restructuring costs, if any, which may have a positive or negative impact on reported results.

Conference Call Information

Wyndham Worldwide Corporation will hold a conference call with investors to discuss this news on Friday, February 13, 2009 at 8:30 a.m. EST. Listeners may access the webcast live through the Company's web site at www.wyndhamworldwide.com/investors/. An archive of this webcast will be available at the web site for approximately 90 days beginning at noon EST on February 13, 2009. The conference call may also be accessed by dialing (888) 989-4394 and providing the passcode "Wyndham". Listeners are urged to call at least 10 minutes prior to the scheduled start time. A telephone replay will be available at (866) 442-2103 beginning at noon EST on February 13, 2009 until 5 p.m. EST on March 29, 2009; callers must provide the passcode "147852".

Presentation of Financial Information

Financial information discussed in this press release includes both GAAP and non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported results and are intended to illustrate what management believes are relevant period-over-period comparisons.

About Wyndham Worldwide

As one of the world's largest hospitality companies, Wyndham Worldwide offers individual consumers and business-to-business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands. Wyndham Hotel Group encompasses more than 7,040 franchised hotels and approximately 592,900 hotel rooms worldwide. Group RCI offers its nearly 3.7 million members access to more than 73,000 vacation properties located in approximately 100 countries. Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of over 150 vacation ownership resorts serving over 830,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 27,000 employees globally.

For more information about Wyndham Worldwide, please visit the Company's web site at www.wyndhamworldwide.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, conveying management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release include statements related to the Company's revenues, earnings and related financial and operating measures and restructuring plans.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Factors that could cause actual results to differ materially from those in the forward-looking statements include general economic conditions, the performance of the financial and credit markets, the economic environment for the hospitality industry, the impact of war and terrorist activity, operating risks associated with the hotel, vacation exchange and rentals and vacation ownership businesses, as well as those described in the Company's Quarterly Report on Form 10-Q, filed with the SEC on November 10, 2008. Except for the Company's ongoing obligations to disclose material information under the federal securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.






                                                                      Table 1
                          Wyndham Worldwide Corporation
                     OPERATING RESULTS OF REPORTABLE SEGMENTS
                                  (In millions)


    In addition to other measures, management evaluates the operating
    results of each of its reportable segments based upon net revenues and
    "EBITDA," which is defined as net income/(loss) before depreciation and
    amortization, interest expense (excluding interest on securitized
    vacation ownership debt), interest income and income taxes, each of
    which is presented on the Company's Consolidated Statements of
    Operations.  The Company believes that EBITDA is a useful measure of
    performance for the Company's industry segments which, when considered
    with GAAP measures, the Company believes gives a more complete
    understanding of the Company's operating performance.  The Company's
    presentation of EBITDA may not be comparable to similarly-titled
    measures used by other companies.


    The following tables summarize net revenues and EBITDA for reportable
    segments, as well as reconcile EBITDA to net income/(loss) for the three
    and twelve months ended December 31, 2008 and 2007:


                                   Three Months Ended December 31,
                     ---------------------------------------------------
                                 2008                          2007
                     ---------------------------------------------------
                     Net Revenues   EBITDA  (c)    Net Revenues   EBITDA
                     ------------   ------         ------------   ------
    Lodging                  $170      $38  (d)            $176      $49
    Vacation Exchange
     and Rentals              250       (4) (e)             280       56
    Vacation Ownership        492   (1,321) (f)             576       99
                              ---   ------                  ---       --
         Total Reportable
          Segments            912   (1,287)               1,032      204
    Corporate and
     Other (a) (b)             (1)       7                    -       28
                               --       --                   --       --
         Total Company       $911  $(1,280)              $1,032     $232
                             ====  =======               ======     ====

    Reconciliation of EBITDA to Net Income/(Loss)
    ---------------------------------------------

    EBITDA                         $(1,280)                         $232
    Depreciation and amortization       47                            44
    Interest expense                    22                            17
    Interest income                     (4)                           (2)
                                        --                            --
    Income/(loss) before income
     taxes                          (1,345)                          173
    Provision for income taxes          11                            69
                                        --                            --
    Net income/(loss)              $(1,356)                         $104
                                   =======                          ====

                                  Twelve Months Ended December 31,
                     ---------------------------------------------------
                                 2008                          2007
                     ---------------------------------------------------
                     Net Revenues   EBITDA  (c)    Net Revenues   EBITDA  (h)
                     ------------   ------         ------------   ------
    Lodging                  $753     $218  (d)            $725     $223
    Vacation Exchange
     and Rentals            1,259      248  (e)           1,218      293
    Vacation Ownership      2,278   (1,074) (f) (g)       2,425      378
                            -----   ------                -----      ---
         Total Reportable
          Segments          4,290     (608)               4,368      894
    Corporate and
     Other (a) (b)             (9)     (27)                  (8)     (11)
                               --      ---                   --      ---
         Total Company     $4,281    $(635)              $4,360     $883
                           ======    =====               ======     ====

    Reconciliation of EBITDA to Net Income/(Loss)
    ---------------------------------------------

    EBITDA                           $(635)                         $883
    Depreciation and amortization      184                           166
    Interest expense                    80                            73
    Interest income                    (12)                          (11)
                                       ---                           ---
    Income/(loss) before income
     taxes                            (887)                          655
    Provision for income taxes         187                           252
                                       ---                           ---
    Net income/(loss)              $(1,074)                         $403
                                   =======                          ====


    --------------
    (a) Includes the elimination of transactions between segments.
    (b) Includes $14 million and $41 million of a net benefit during the
        three months ended December 31, 2008 and 2007, respectively, and
        $18 million and $46 million of a net benefit during the twelve months
        ended December 31, 2008 and 2007, respectively, related to the
        resolution of and adjustment to certain contingent liabilities and
        assets.
    (c) Includes restructuring costs of $7 million and $66 million for
        Vacation Exchange and Rentals and Vacation Ownership, respectively,
        during the three months ended December 31, 2008 and $4 million,
        $9 million and $66 million for Lodging, Vacation Exchange and Rentals
        and Vacation Ownership, respectively, during the twelve months ended
        December 31, 2008.
    (d) Includes a non-cash impairment charge of $16 million ($10 million,
        net of tax) related to the write down of franchise agreements of one
        of the Company's brands.
    (e) Includes (i) non-cash impairment charges of $36 million ($28 million,
        net of tax) due to trademark and fixed asset write downs related to
        the Company's vacation rentals businesses and the write-off of the
        Company's investment in a joint venture and (ii) a cash charge of
        $24 million ($24 million, net of tax) due to foreign currency losses.
    (f) Includes (i) a non-cash goodwill impairment charge of $1,342 million
        ($1,337 million, net of tax) to reflect reduced future cash flow
        estimates and (ii) a non-cash impairment charge of $4 million
        ($3 million, net of tax) related to the termination of a development
        project.
    (g) Includes a non-cash impairment charge of $28 million ($17 million,
        net of tax) due to the Company's initiative to rebrand its vacation
        ownership trademarks to the Wyndham brand.
    (h) Includes 2007 separation and related costs of $9 million and
        $7 million for Vacation Ownership and Corporate and Other,
        respectively.



                                                                      Table 2
                        Wyndham Worldwide Corporation
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In millions, except per share data)


                                          Three Months    Twelve Months
                                             Ended            Ended
                                          December 31,     December 31,
                                          ------------     ------------
                                           2008   2007     2008    2007
                                           ----   ----     ----    ----
    Net revenues
      Vacation ownership interest sales    $309   $383   $1,463  $1,666
      Service fees and membership           360    387    1,705   1,619
      Franchise fees                        113    118      514     523
      Consumer financing                    112     96      426     358
      Other                                  17     48      173     194
                                             --     --      ---     ---
    Net revenues                            911  1,032    4,281   4,360
                                            ---  -----    -----   -----

    Expenses
      Operating                             337    387    1,622   1,632
      Cost of vacation ownership interests   52     80      278     376
      Consumer financing interest (a)        37     33      131     110
      Marketing and reservation             171    199      830     831
      General and administrative (b)        124    100      561     519
      Separation and related costs (c)        -      -        -      16
      Goodwill and other impairments (d)  1,398      -    1,426       -
      Restructuring costs (e)                73      -       79       -
      Depreciation and amortization          47     44      184     166
                                             --     --      ---     ---
    Total expenses                        2,239    843    5,111   3,650
                                          -----    ---    -----   -----

    Operating income/(loss)              (1,328)   189     (830)    710
    Other income, net                        (1)     1      (11)     (7)
    Interest expense                         22     17       80      73
    Interest income                          (4)    (2)     (12)    (11)
                                             --     --      ---     ---

    Income/(loss) before income taxes    (1,345)   173     (887)    655
    Provision for income taxes               11     69      187     252
                                             --     --      ---     ---

    Net income/(loss)                   $(1,356)  $104  $(1,074)   $403
                                        =======   ====  =======    ====

    Earnings/(losses) per share
      Basic                              $(7.63) $0.59   $(6.05)  $2.22
      Diluted                             (7.63)  0.58    (6.05)   2.20

    Weighted average shares outstanding
      Basic                                 178    178      178     181
      Diluted                               178    179      178     183


    --------------
    (a) Prior to periods ending September 30, 2008, such amounts were
        included as a component of Operating Expenses.
    (b) Includes (i) $14 million and $41 million of a net benefit
        during the three months ended December 31, 2008 and 2007,
        respectively, and $18 million and $46 million of a net benefit
        during the twelve months ended December 31, 2008 and 2007,
        respectively, related to the resolution of and loss to certain
        contingent liabilities and assets and (ii) a cash charge of $24
        million ($24 million, net of tax) for Vacation Exchange and
        Rentals due to foreign currency losses.
    (c) Represents costs that the Company incurred in connection with
        the execution of its separation from its former parent, Cendant
        (now Avis Budget Group, Inc.).  Such amount, net of tax, was
        $10 million during the twelve months ended December 31, 2007.
    (d) Represents (i) a non-cash goodwill impairment charge of $1,342
        million ($1,337 million, net of tax) for Vacation Ownership to
        reflect reduced future cash flow estimates, (ii) non-cash
        impairment charges of $36 million ($28 million, net of tax) for
        Vacation Exchange and Rentals due to trademark and fixed asset
        write downs related to the Company's vacation rentals businesses
        and the write-off of the Company's investment in a joint venture,
        (iii) a non-cash impairment charge of $16 million ($10 million, net
        of tax) for Lodging related to the write down of franchise
        agreements of one of the Company's brands and (iv) a non-cash
        impairment charge of $4 million ($3 million, net of tax) for
        Vacation Ownership related to the termination of a development
        project during the three and twelve months ended December 31,
        2008.  The twelve months ended December 31, 2008 also includes
        a non-cash impairment charge of $28 million ($17 million, net
        of tax) for Vacation Ownership due to the Company's initiative
        to rebrand its vacation ownership trademarks to the Wyndham
        brand.
    (e) Relates to costs incurred as a result of various strategic
        initiatives approved by the Company and commenced during 2008.
        Such amounts, net of tax, were $45 million and $49 million
        during the three and twelve months ended December 31, 2008,
        respectively.


                                                                      Table 3
                                                                     (1 of 2)
                       Wyndham Worldwide Corporation
                            OPERATING STATISTICS


                    Year    Q1       Q2       Q3       Q4     Full Year
                    ----    --       --       --       --     ---------
    Lodging (a)
      Number of
       Rooms (b)    2008  551,100  551,500  583,400  592,900        N/A
                    2007  539,300  541,700  540,900  550,600        N/A
                    2006  525,500  535,900  533,700  543,200        N/A
                    2005  519,300  516,000  512,000  532,700        N/A

      RevPAR        2008   $32.21   $38.87   $41.93   $30.03     $35.74
                    2007   $31.35   $38.35   $43.10   $33.09     $36.48
                    2006   $30.45   $36.97   $40.82   $31.41     $34.95
                    2005   $25.53   $31.91   $36.86   $29.72     $31.00

      Royalty,
       Marketing and
       Reservation
       Revenue (in
       000s)        2008 $104,162 $127,238 $145,502 $105,803   $482,709
                    2007 $105,426 $129,453 $146,290 $107,870   $489,041
                    2006 $102,741 $125,409 $138,383 $104,505   $471,039
                    2005  $84,704 $104,281 $119,829  $99,804   $408,620

    Vacation Exchange and Rentals
      Average
       Number of
       Members (in
       000s)        2008    3,632    3,682    3,673    3,693      3,670
                    2007    3,474    3,506    3,538    3,588      3,526
                    2006    3,292    3,327    3,374    3,429      3,356
                    2005    3,148    3,185    3,233    3,271      3,209

      Annual Dues
       and Exchange
       Revenue Per
       Member       2008  $150.84  $128.91  $124.51  $109.56    $128.37
                    2007  $155.60  $132.33  $131.38  $124.59    $135.85
                    2006  $152.10  $130.37  $132.31  $128.13    $135.62
                    2005  $159.12  $134.98  $125.64  $124.05    $135.76

      Vacation
       Rental
       Transactions
        (in 000s)   2008      387      319      360      282      1,347
                    2007      398      326      360      293      1,376
                    2006      385      310      356      293      1,344
                    2005      367      311      344      278      1,300

      Average Net
       Price Per
       Vacation
       Rental       2008  $412.74  $477.63  $553.69  $400.09    $463.10
                    2007  $349.73  $415.71  $506.78  $426.93    $422.83
                    2006  $312.51  $374.91  $442.75  $356.16    $370.93
                    2005  $331.37  $363.14  $412.66  $325.62    $359.27

    Vacation Ownership
      Gross Vacation
       Ownership
       Interest
       Sales (in
       000s)        2008 $458,000 $532,000 $566,000 $432,000 $1,987,000
                    2007 $430,000 $523,000 $552,000 $488,000 $1,993,000
                    2006 $357,000 $434,000 $482,000 $469,000 $1,743,000
                    2005 $281,000 $354,000 $401,000 $360,000 $1,396,000

      Tours         2008  255,000  314,000  334,000  240,000  1,143,000
                    2007  240,000  304,000  332,000  268,000  1,144,000
                    2006  208,000  273,000  312,000  254,000  1,046,000
                    2005  195,000  250,000  272,000  217,000    934,000

      Volume Per
       Guest (VPG)  2008   $1,668   $1,583   $1,550   $1,630     $1,602
                    2007   $1,607   $1,596   $1,545   $1,690     $1,606
                    2006   $1,475   $1,426   $1,434   $1,623     $1,486
                    2005   $1,349   $1,284   $1,349   $1,507     $1,368


    --------------
    Note: Full year amounts may not foot across due to rounding.
    (a) Quarterly drivers in the Lodging segment include the acquisitions of
        Microtel Inns & Suites and Hawthorn Suites (July 2008), Baymont Inn &
        Suites (April 2006) and Wyndham Hotels and Resorts (October 2005)
        from their acquisition dates forward.  Therefore, the operating
        statistics are not presented on a comparable basis.
    (b) Numbers include affiliated rooms from the fourth quarter of 2006
        forward.



                                                                      Table 3
                                                                     (2 of 2)

                             Wyndham Worldwide Corporation
                                 OPERATING STATISTICS

                                   GLOSSARY OF TERMS
                                   -----------------

    Lodging

    Number of Rooms: Represents the number of rooms at lodging properties at
    the end of the period which are either (i) under franchise and/or
    management agreements, (ii) properties affiliated with Wyndham Hotels and
    Resorts brand for which we receive a fee for reservation and/or other
    services provided or (iii) properties managed under the CHI Limited joint
    venture.

    Average Occupancy Rate: Represents the percentage of available rooms
    occupied during the period.

    Average Daily Rate (ADR): Represents the average rate charged for renting
    a lodging room for one day.

    RevPAR:  Represents revenue per available room and is calculated by
    multiplying average occupancy rate by ADR.  Comparable RevPAR represents
    RevPAR of hotels which are included in both periods.

    Royalty, Marketing and Reservation Revenues:  Royalty, marketing and
    reservation revenues are typically based on a percentage of the gross room
    revenues of each hotel. Royalty revenue is generally a fee charged to each
    franchised or managed hotel for the use of one of our trade names, while
    marketing and reservation revenues are fees that we collect and are
    contractually obligated to spend to support marketing and reservation
    activities.  Marketing and reservation fees are also included in Table 4
    within Marketing, Reservation and Wyndham Rewards Revenues.


    Vacation Exchange and Rentals

    Average Number of Members:  Represents members in our vacation exchange
    programs who pay annual membership dues. For additional fees, such
    participants are entitled to exchange intervals for intervals at other
    properties affiliated with our vacation exchange business. In addition,
    certain participants may exchange intervals for other leisure-related
    products and services.

    Annual Dues and Exchange Revenue Per Member: Represents total revenues
    from annual membership dues and exchange fees generated for the period
    divided by the average number of vacation exchange members during the
    year.

    Vacation Rental Transactions: Represents the gross number of transactions
    that are generated in connection with customers booking their vacation
    rental stays through us. In our European vacation rentals businesses, one
    rental transaction is recorded each time a standard one-week rental is
    booked; however, in the United States, one rental transaction is recorded
    each time a vacation rental stay is booked, regardless of whether it is
    less than or more than one week.

    Average Net Price Per Vacation Rental: Represents the net rental price
    generated from renting vacation properties to customers divided by the
    number of rental transactions.


    Vacation Ownership

    Gross Vacation Ownership Interest Sales: Represents gross sales of
    vacation ownership interests (including tele-sales upgrades, which are a
    component of upgrade sales) before deferred sales and loan loss
    provisions.


    Tours: Represents the number of tours taken by guests in our efforts to
    sell vacation ownership interests.

    Volume per Guest (VPG): Represents revenue per guest and is calculated by
    dividing the gross vacation ownership interest sales, excluding tele-
    sales upgrades, which are a component of upgrade sales, by the number of
    tours.


    General

    Constant Currency: Represents comparison eliminating the effects of
    foreign exchange rate fluctuations between periods.




                                                                      Table 4

                           Wyndham Worldwide Corporation
                                   ADDITIONAL DATA


                    Year     Q1        Q2        Q3        Q4     Full Year
                    ----     --        --        --        --     ---------
    Lodging (a)
    Number of
     Properties (b) 2008    6,550     6,560     6,970     7,040        N/A
                    2007    6,450     6,460     6,460     6,540        N/A
                    2006    6,300     6,440     6,420     6,470        N/A
                    2005    6,400     6,380     6,350     6,350        N/A

    Marketing,
     Reservation
     and Wyndham
     Rewards
     Revenues
     (in 000s) (c)  2008  $62,200   $76,507   $85,491   $62,608   $286,807
                    2007  $61,369   $74,575   $84,820   $65,208   $285,973
                    2006  $58,572   $70,931   $78,856   $61,135   $269,495
                    2005  $45,066   $56,558   $65,812   $58,053   $225,491

    Property
     Management
     Reimbursable
     Revenue
     (in 000s) (d)  2008  $27,128   $26,326   $24,973   $21,472    $99,899
                    2007  $15,624   $22,338   $25,612   $28,414    $91,987
                    2006  $15,732   $19,935   $17,210   $16,263    $69,142
                    2005       $-        $-        $-   $17,291    $17,291

    Vacation Ownership
    Deferred
     Revenues
     (in 000s) (e)  2008 $(81,716)  $(5,240)  $(2,023)  $13,870   $(75,108)
                    2007   $3,906   $(4,908)     $506  $(21,092)  $(21,588)
                    2006  $12,708     $(221) $(23,491) $(10,675)  $(21,679)
                    2005     $492   $(9,150)  $(5,856)  $(2,022)  $(16,536)

    Provision for
     Loan Losses
     (in 000s) (f)  2008  $82,344  $112,669  $118,609  $136,090   $449,712
                    2007  $60,869   $75,032   $85,762   $83,644   $305,307
                    2006  $61,242   $55,872   $63,213   $78,680   $259,007
                    2005  $24,652   $27,754   $44,050   $31,644   $128,101
    -------------
    Note: Full year amounts may not foot across due to rounding.

     (a) Information includes the acquisitions of Microtel Inns & Suites and
         Hawthorn Suites (July 2008), Baymont Inn & Suites (April 2006) and
         Wyndham Hotels and Resorts (October 2005) from their acquisition
         dates forward.  Therefore, the data is not presented on a comparable
         basis.
     (b) Numbers include affiliated hotels from the fourth quarter of 2006
         forward.
     (c) Marketing and reservation revenues represent fees we receive from
         franchised and managed hotels that are to be expended for marketing
         purposes or the operation of a centralized, brand-specific
         reservation system.  These fees are typically based on a percentage
         of the gross room revenues of each hotel.  Marketing and reservation
         fees are also included in the above table within royalty, marketing
         and reservation revenues.  Wyndham Rewards revenues represent fees
         we receive relating to our loyalty program.
     (d) Primarily represents payroll costs in our hotel management business
         that we incur and pay on behalf of property owners and for which we
         are reimbursed by the property owners.
     (e) Represents the revenue that is deferred under the percentage of
         completion method of accounting.  Under the percentage of
         completion method of accounting, a portion of the total revenue
         from a vacation ownership contract sale is not recognized if the
         construction of the vacation resort has not yet been fully
         completed.  This revenue will be recognized in future periods in
         proportion to the costs incurred as compared to the total expected
         costs for completion of construction of the vacation resort.
         Positive amounts represent the recognition of previously deferred
         revenues.
     (f) Represents provision for estimated losses on vacation ownership
         contract receivables originated during the period.  Beginning
         January 1, 2006, the Company recorded such provision as a contra
         revenue to vacation ownership interest sales on the Consolidated
         and Combined Statements of Income, as required by Statement of
         Financial Accounting Standards No. 152, "Accounting for Real
         Estate Time-Sharing Transactions."  Prior to January 1, 2006, the
         Company recorded such provision, net of estimated inventory
         recoveries, as a separate expense line item on the Combined
         Statements of Income and thus 2005 amounts are not comparable
         to 2006, 2007 and 2008 amounts.



                                                                      Table 5
                            Wyndham Worldwide Corporation
                                  SCHEDULE OF DEBT
                                    (In millions)


                  December 31, September 30, June 30, March 31, December 31,
                      2008         2008        2008     2008        2007
                  ------------ ------------- -------- --------- ------------

    Securitized
     vacation
     ownership debt
      Term notes        $1,252        $1,437   $1,727    $1,278       $1,435
      Bank conduit
       facility (a)        558           647      354       841          646
                           ---           ---      ---       ---          ---
    Securitized
     vacation
     ownership debt (b)  1,810         2,084    2,081     2,119        2,081
    Less:
     Current portion
     of securitized
     vacation
     ownership debt        294           324      284       268          237
                           ---           ---      ---       ---          ---
    Long-term
     securitized
     vacation
     ownership debt     $1,516        $1,760   $1,797    $1,851       $1,844
                        ======        ======   ======    ======       ======

    Debt:
      6.00% Senior
       unsecured
       notes (due
       December
       2016) (c)          $797          $797     $797      $797         $797
      Term loan
       (due July 2011)     300           300      300       300          300
      Revolving credit
       facility (due
       July 2011) (d)      576           305      145        95           97
      Vacation ownership
       bank borrowings     159           172      196       181          164
      Vacation rentals
       capital leases      139           143      162       165          154
      Other                 13            12       13        14           14
                            --            --       --        --           --
    Total debt           1,984         1,729    1,613     1,552        1,526
    Less:
     Current portion
      of debt              169           182      207       193          175
                           ---           ---      ---       ---          ---
    Long-term debt      $1,815        $1,547   $1,406    $1,359       $1,351
                        ======        ======   ======    ======       ======

    --------------
    (a) Represents (i) a 364-day, non-recourse vacation ownership bank
        conduit facility with a term through November 2009 and
        availability of $943 million and (ii) the outstanding balance
        of the Company's prior bank conduit facility that ceased operating
        as a revolving facility as of October 29, 2008 and will amortize in
        accordance with its terms, which is expected to be approximately
        three years.
    (b) This debt is collateralized by $2,906 million, $2,721 million,
        $2,723 million, $2,667 million and $2,596 million of underlying
        vacation ownership contract receivables and related assets at
        December 31, 2008, September 30, 2008, June 30, 2008, March 31,
        2008 and December 31, 2007, respectively.
    (c) The balance at December 31, 2008 represents $800 million aggregate
        principal less $3 million of unamortized discount.
    (d) The Company's revolving credit facility has a borrowing capacity
        of $900 million.  At December 31, 2008, the Company has $33
        million of outstanding letters of credit and a remaining borrowing
        capacity of $291 million.  The increase in balance from September 30,
        2008 to December 31, 2008 is primarily due to the Company drawing
        $215 million on its revolving credit facility in conjunction with
        the closing of the Company's new conduit facility during November
        2008.  The increase in balance from June 30, 2008 to September 30,
        2008 primarily relates to amounts borrowed to fund the July 2008
        acquisition of U.S. Franchise Systems, Inc. and its Microtel Inns &
        Suites and Hawthorn Suites hotel brands.



                                                                      Table 6
                                                                     (1 of 2)
                          Wyndham Worldwide Corporation
                           HOTEL BRAND SYSTEMS DETAILS


                     As of and For the Three Months Ended December 31, 2008
                     ------------------------------------------------------
                                                   Average
                      Number   Number   Average     Daily    Average Revenue
                        of       of    Occupancy    Rate       Per Available
         Brand      Properties  Rooms     Rate      (ADR)     Room (RevPAR)
         -----      ---------- ------- ----------  --------  ---------------

      Wyndham Hotels
       and Resorts          82  21,724       53.2%  $111.86           $59.49

      Wingate Inn          164  15,051       51.5%   $90.77           $46.76

      Hawthorn Suites       90   8,423       53.1%   $86.20           $45.73

      Ramada               897 114,986       48.1%   $79.31           $38.15

      Baymont              227  19,090       45.4%   $64.60           $29.35

      AmeriHost Inn          9     561       42.1%   $61.54           $25.92

      Days Inn           1,880 152,971       43.4%   $60.17           $26.09

      Super 8            2,110 130,920       47.2%   $55.82           $26.37

      Howard Johnson       482  47,177       41.9%   $60.04           $25.16

      Travelodge           479  36,154       41.2%   $57.40           $23.63

      Microtel Inns &
       Suites              308  22,106       51.4%   $56.88           $29.22

      Knights Inn          301  19,542       36.9%   $42.39           $15.65

      Unmanaged,
       Affiliated
       and Managed,
       Non-Proprietary
       Hotels (*)           14   4,175        N/A       N/A              N/A

                         ----- -------
         Total           7,043 592,880       45.7%   $65.68           $30.03
                         ===== =======


                     As of and For the Three Months Ended December 31, 2007
                     ------------------------------------------------------
                                                   Average
                      Number   Number   Average     Daily    Average Revenue
                        of       of     Occupancy    Rate     Per Available
          Brand     Properties  Rooms      Rate      (ADR)    Room (RevPAR)
          -----     ---------- -------  ---------  --------  ---------------

      Wyndham Hotels
       and Resorts          79  20,953       60.4%  $111.71           $67.44

      Wingate Inn          152  13,944       56.8%   $92.25           $52.42

      Ramada               874 106,978       50.9%   $83.24           $42.38

      Baymont              193  16,592       43.2%   $58.92           $25.43

      AmeriHost Inn         28   1,943       45.5%   $69.40           $31.60

      Days Inn           1,883 153,333       46.7%   $62.19           $29.05

      Super 8            2,081 128,587       51.1%   $57.77           $29.53

      Howard Johnson       471  45,781       45.4%   $60.33           $27.39

      Travelodge           494  36,876       44.7%   $67.25           $30.03

      Knights Inn          268  18,733       37.7%   $43.35           $16.33

      Unmanaged,
       Affiliated
       and Managed,
       Non-Proprietary
       Hotels (*)           21   6,856        N/A       N/A              N/A

                         ----- -------
         Total           6,544 550,576       48.6%   $68.03           $33.09
                         ===== =======

    --------------

    NOTE: A glossary of terms is included in Table 3 (2 of 2).

         (*) Represents 1) affiliated properties for which we receive a
         fee for reservation services provided and 2) properties managed
         under the CHI Limited joint venture.  These properties are not
         branded; as such, certain operating statistics (such as average
         occupancy rate, ADR and RevPAR) are not relevant.



                                                                      Table 6
                                                                     (2 of 2)
                        Wyndham Worldwide Corporation
                         HOTEL BRAND SYSTEMS DETAILS


                   As of and For the Twelve Months Ended December 31, 2008
                   -------------------------------------------------------

                                                                Average
                                                                Revenue
                                                     Average      Per
                      Number    Number    Average     Daily    Available
                        of        of     Occupancy     Rate      Room
         Brand       Properties  Rooms      Rate       (ADR)   (RevPAR)
         -----       ---------- ------- -----------  --------  ---------

      Wyndham Hotels
       and Resorts           82  21,724        61.0%  $120.79     $73.67

      Wingate Inn           164  15,051        59.5%   $92.29     $54.94

      Hawthorn Suites        90   8,423        57.7%   $88.57     $51.14

      Ramada                897 114,986        52.6%   $81.62     $42.94

      Baymont               227  19,090        49.7%   $65.96     $32.80

      AmeriHost Inn           9     561        47.9%   $69.87     $33.47

      Days Inn            1,880 152,971        49.9%   $64.57     $32.19

      Super 8             2,110 130,920        53.8%   $59.38     $31.95

      Howard Johnson        482  47,177        46.9%   $64.62     $30.28

      Travelodge            479  36,154        48.3%   $67.50     $32.64

      Microtel Inns &
       Suites               308  22,106        54.3%   $60.00     $32.55

      Knights Inn           301  19,542        41.0%   $43.40     $17.80

      Unmanaged,
       Affiliated
       and Managed,
       Non-Proprietary
       Hotels (*)            14   4,175         N/A       N/A        N/A

                          ----- -------
         Total            7,043 592,880        51.4%   $69.52     $35.74
                          ===== =======


                 As of and For the Twelve Months Ended December 31, 2007
                 -------------------------------------------------------
                                                                Average
                                                                Revenue
                                                     Average      Per
                       Number   Number    Average     Daily   Available
                         of       of     Occupancy     Rate      Room
          Brand      Properties  Rooms      Rate       (ADR)   (RevPAR)
          -----     ----------- ------- -----------  -------- ----------

      Wyndham Hotels
       and Resorts           79  20,953        63.9%  $112.42     $71.88

      Wingate Inn           152  13,944        64.2%   $90.23     $57.96

      Ramada                874 106,978        55.1%   $78.88     $43.48

      Baymont               193  16,592        52.7%   $66.60     $35.09

      AmeriHost Inn          28   1,943        48.5%   $67.09     $32.51

      Days Inn            1,883 153,333        52.5%   $63.37     $33.24

      Super 8             2,081 128,587        56.2%   $58.35     $32.80

      Howard Johnson        471  45,781        48.4%   $64.34     $31.12

      Travelodge            494  36,876        50.3%   $66.60     $33.52

      Knights Inn           268  18,733        41.1%   $43.53     $17.88

      Unmanaged,
       Affiliated
       and Managed,
       Non-Proprietary
       Hotels (*)            21   6,856         N/A       N/A        N/A

                          ----- -------
         Total            6,544 550,576        53.7%   $67.96     $36.48
                          ===== =======

    --------------
    NOTE: A glossary of terms is included in Table 3 (2 of 2).

          (*) Represents 1) affiliated properties for which we receive a
          fee for reservation services provided and 2) properties managed
          under the CHI Limited joint venture.  These properties are not
          branded; as such, certain operating statistics (such as average
          occupancy rate, ADR and RevPAR) are not relevant.



                                                                      Table 7
                                                                     (1 of 2)
                          Wyndham Worldwide Corporation
                             NON-GAAP RECONCILIATIONS
                       (In millions, except per share data)

                                                                      Twelve
                                                                      Months
                               Three Months Ended                     Ended
                      -------------------------------------------   --------
                      March 31,   June 30,   Sept. 30,   Dec. 31,   Dec. 31,
                         2008        2008       2008        2008       2008
                      ----------  ---------  ----------  ---------  --------

    Reported EBITDA         $130       $221        $294    $(1,280)    $(635)
      Goodwill
       impairment (a)          -          -           -      1,342     1,342
      Other impairments (b)   28          -           -         56        84
      Foreign currency
       losses (c)              -          -           -         24        24
      Resolution of
       and adjustment to
       contingent
       liabilities
       and assets (d)          3         (7)          1        (14)      (18)
      Restructuring
       costs (e)              --         --           6         73        79
                              --         --          --         --        --

    Adjusted EBITDA         $161       $214        $301       $201      $876
    ---------------         ----       ----        ----       ----      ----

    Reported PreTax
     Income/(Loss)           $70       $160        $228    $(1,345)    $(887)
      Goodwill
       impairment (a)          -          -           -      1,342     1,342
      Other impairments (b)   28          -           -         56        84
      Foreign currency
       losses (c)              -          -           -         24        24
      Resolution of
       and adjustment to
       contingent
       liabilities
       and assets (d)          3         (7)          1        (14)      (18)
      Restructuring
       costs (e)              --         --           6         73        79
                              --         --          --         --        --

    Adjusted PreTax
     Income                 $101       $153        $235       $136      $624
    --------                ----       ----        ----       ----      ----

    Reported Tax
     Provision              $(28)      $(62)       $(86)      $(11)    $(187)
      Goodwill
       impairment (f)          -          -           -         (5)       (5)
      Other impairments (f)  (11)         -           -        (15)      (26)
      Foreign currency
       losses (f)              -          -           -          -         -
      Resolution of
       and adjustment to
       contingent
       liabilities
       and assets (f)          -          3           1          7        12
      Restructuring
       costs (f)              --         --          (2)       (28)      (30)
                              --         --          --         --        --

    Adjusted Tax
     Provision              $(39)      $(59)       $(87)      $(52)    $(236)
    ----------              ----       ----        ----       ----     -----

    Reported Net
     Income/(Loss)           $42        $98        $142    $(1,356)  $(1,074)
      Goodwill
       impairment              -          -           -      1,337     1,337
      Other impairments       17          -           -         41        58
      Foreign currency losses  -          -           -         24        24
      Resolution of
       and adjustment to
       contingent
       liabilities
       and assets              3         (4)          2         (7)       (6)
      Restructuring
       costs                  --         --           4         45        49
                              --         --          --         --        --

    Adjusted
     Net Income              $62        $94        $148        $84      $388
    -----------              ---        ---         ---        ---       ---

    Reported
     Diluted EPS           $0.24      $0.55       $0.80     $(7.63)   $(6.05)
      Goodwill
       impairment              -          -           -       7.52      7.51
      Other impairments     0.10          -           -       0.23      0.32
      Foreign currency
       losses                  -          -           -       0.14      0.14
      Resolution of
       and adjustment to
       contingent
       liabilities
       and assets           0.01      (0.02)       0.01      (0.04)    (0.03)
      Restructuring
       costs                  --         --        0.02       0.25      0.28
                              --         --          --         --        --

    Adjusted
     Diluted EPS           $0.35      $0.53       $0.83      $0.47     $2.18
    ------------           -----      -----       -----      -----     -----

    Diluted Shares           178        178         178        178       178

    --------------
    Note: Amounts may not foot due to rounding.
    (a) Represents a non-cash goodwill impairment charge for Vacation
        Ownership to reflect reduced future cash flow estimates.
    (b) During the three months ended March 31, 2008, represents a non-cash
        impairment charge of $28 million ($17 million, net of tax) for
        Vacation Ownership due to the Company's initiative to rebrand
        its vacation ownership trademarks to the Wyndham brand.  During
        the three months ended December 31, 2008, represents (i)
        non-cash impairment charges of $36 million ($28 million, net of tax)
        for Vacation Exchange and Rentals due to trademark and fixed asset
        write downs related to the Company's vacation rentals businesses and
        the write-off of the Company's investment in a joint venture, (iii) a
        non-cash impairment charge of $16 million ($10 million, net of tax)
        for Lodging related to the write down of franchise agreements of one
        of the Company's brands and (iv) a non-cash impairment charge of $4
        million ($3 million, net of tax) for Vacation Ownership related to
        the termination of a development project.
    (c) Represents a cash charge for Vacation Exchange and Rentals due to
        foreign currency losses.
    (d) Relates to the net (benefit)/expense from the resolution of and
        adjustment to certain contingent liabilities and assets.
    (e) Relates to costs incurred as a result of various strategic
        initiatives approved by the Company and commenced during the
        third quarter of 2008.
    (f) Relates to the tax effect of the adjustments.



                                                                     Table 7
                                                                    (2 of 2)
                          Wyndham Worldwide Corporation
                            NON-GAAP RECONCILIATIONS
                      (In millions, except per share data)

                                                                      Twelve
                                                                      Months
                                  Three Months Ended                  Ended
                         -----------------------------------------   -------
                         March 31,   June 30,   Sept. 30,  Dec. 31,  Dec. 31,
                            2007        2007       2007      2007      2007
                         ----------  ---------  ---------- -------   -------

    Reported EBITDA            $192       $211        $248   $232      $883
      Separation and
       related costs (a)          6          7           3      -        16
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets (b)               (13)       (17)         25    (41)      (46)
                                ---        ---          --    ---       ---

    Adjusted EBITDA            $185       $201        $276   $191      $853
    ---------------            ----       ----        ----   ----      ----

    Reported PreTax
     Income                    $139       $154        $189   $173      $655
      Separation and
       related costs (a)          6          7           3      -        16
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets (b)               (13)       (17)         25    (41)      (46)
                                ---        ---          --    ---       ---

    Adjusted PreTax
     Income                    $132       $144        $217   $132      $625
    ---------------            ----       ----        ----   ----      ----

    Reported Tax
     Provision                 $(53)      $(58)       $(72)  $(69)    $(252)
      Separation and
       related costs (c)         (2)        (3)         (1)     -        (6)
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets (c)                 4          6         (10)    20        20
                                ---        ---         ---    ---       ---

    Adjusted Tax
     Provision                 $(51)      $(55)       $(83)  $(49)    $(238)
    ------------               ----       ----        ----   ----     -----

    Reported Net Income         $86        $96        $117   $104      $403
      Separation and
       related costs              4          4           2      -        10
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets                    (9)       (11)         15    (21)      (26)
                                ---        ---         ---    ---       ---

    Adjusted Net Income         $81        $89        $134    $83      $387
    -------------------         ---        ---        ----    ---      ----

    Reported Diluted EPS      $0.45      $0.52       $0.65  $0.58     $2.20
      Separation and
       related costs           0.02       0.02        0.01      -      0.05
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets                 (0.05)     (0.06)       0.09  (0.12)    (0.14)
                              -----      -----        ----  -----     -----

    Adjusted Diluted EPS      $0.43      $0.49       $0.75  $0.46     $2.12
    --------------------      -----      -----       -----  -----     -----

    Diluted Shares              190        183         180    179       183

    --------------
    Note: Amounts may not foot due to rounding.
    (a) Represents the costs incurred in connection with the Company's
        separation from Cendant (now Avis Budget Group).
    (b) Relates to the net (benefit)/expense from the resolution of and
        adjustment to certain contingent liabilities and assets.
    (c) Relates to the tax effect of the adjustments.



                                                                     Table 8
                                                                    (1 of 4)

                            Wyndham Worldwide Corporation
                           NON-GAAP FINANCIAL INFORMATION
                        (In millions, except per share data)

                                   Three Months Ended December 31, 2008
                             ------------------------------------------------

                                                                    Foreign
                                  As     Goodwill       Other       Currency
                             Reported   Impairment   Impairments    Losses
                             --------   ----------   -----------    --------
    Net revenues
      Vacation ownership
       interest sales            $309
      Service fees and
       membership                 360
      Franchise fees              113
      Consumer financing          112
      Other                        17
                                   --          -           -           -
    Net revenues                  911          -           -           -
                                  ---          -           -           -

    Expenses
      Operating                   337
      Cost of vacation
       ownership interests         52
      Consumer financing
       interest                    37
      Marketing and reservation   171
      General and
       administrative             124                                (24) (c)
      Goodwill and other
       impairments              1,398     (1,342) (a)    (56) (b)
      Restructuring costs          73
      Depreciation and
       amortization                47
                                 ----       ----        ----        ----
    Total expenses              2,239     (1,342)        (56)        (24)
                                -----      -----       -----       -----

    Operating
     income/(loss)             (1,328)     1,342          56          24
    Other income, net              (1)
    Interest expense               22
    Interest income                (4)
                                   --         --          --          --

    Income/(loss) before
     income taxes              (1,345)     1,342          56          24
    Provision for
     income taxes                  11          5  (f)     15  (f)      -  (f)
                                   --         --          --          --

    Net income/(loss)         $(1,356)    $1,337         $41         $24
                              =======     ======         ===         ===

    Earnings/(losses)
     per share                 $(7.63)     $7.52       $0.23       $0.14

    Weighted average shares
     outstanding                  178        178         178         178



                             Three Months Ended December 31, 2008
                             ------------------------------------

                               Legacy      Restructuring     As
                             Adjustments      Costs       Adjusted
                             -----------   -------------  --------
    Net revenues
      Vacation ownership
       interest sales                                       $309
      Service fees and
       membership                                            360
      Franchise fees                                         113
      Consumer financing                                     112
      Other                                                   17
                                   -             -            --
    Net revenues                   -             -           911
                                   -             -           ---

    Expenses
      Operating                                              337
      Cost of vacation
       ownership interests                                    52
      Consumer financing
       interest                                               37
      Marketing and
       reservation                                           171
      General and
       administrative             14  (d)                    114
      Goodwill and other
       impairments                                             -
      Restructuring costs                      (73) (e)        -
      Depreciation and
       amortization                                           47
                                  --           ---            --
    Total expenses                14           (73)          758
                                  --           ---           ---

    Operating
     income/(loss)               (14)           73           153
    Other income, net                                         (1)
    Interest expense                                          22
    Interest income                                           (4)
                                                              --

    Income/(loss) before
     income taxes                (14)           73           136
    Provision for
     income taxes                 (7) (f)       28  (f)       52
                                  --            --            --

    Net income/(loss)            $(7)          $45           $84
                                 ===           ===           ===

    Earnings/(losses)
     per share                $(0.04)        $0.25         $0.47

    Weighted average shares
     outstanding                 178           178           178


    --------------
    (a) Represents a non-cash goodwill impairment charge for Vacation
        Ownership to reflect reduced future cash flow estimates.
    (b) Represents (i) non-cash impairment charges of $36 million
        ($28 million, net of tax) for Vacation Exchange and Rentals due to
        trademark and fixed asset write downs related to the Company's
        vacation rentals businesses and the write-off of the Company's
        investment in a jointventure, (ii) a non-cash impairment charge of
        $16 million ($10 million, net of tax) for Lodging related to the
        write down of franchise agreements of one of the Company's brands
        and (iii) a non-cash impairment charge of $4 million ($3 million,
        net of tax) for Vacation Ownership related to the termination of
        a development project.
    (c) Represents a cash charge for Vacation Exchange and Rentals due to
        foreign currency losses.
    (d) Relates to the net benefit from the resolution of and adjustment to
        certain contingent liabilities and assets.
    (e) Relates to costs incurred as a result of various strategic
        initiatives approved by the Company and commenced during 2008.
    (f) Relates to the tax effect of the adjustment.



                                                                      Table 8
                                                                     (2 of 4)

                              Wyndham Worldwide Corporation
                              NON-GAAP FINANCIAL INFORMATION
                           (In millions, except per share data)

                                     Twelve Months December 31, 2008
                            ------------------------------------------------
                                                                     Foreign
                               As        Goodwill        Other      Currency
                            Reported    Impairment    Impairments   Losses
                            --------    ----------    -----------   --------
    Net revenues
      Vacation ownership
       interest sales         $1,463
      Service fees and
       membership              1,705
      Franchise fees             514
      Consumer financing         426
      Other                      173
                                 ---         ---         ---         ---
    Net revenues               4,281           -           -           -
                               -----       -----       -----       -----

    Expenses
      Operating                1,622
      Cost of vacation
       ownership interests       278
      Consumer financing
       interest                  131
      Marketing and
       reservation               830
      General and
       administrative            561                                 (24) (c)
      Goodwill and other
       impairments             1,426      (1,342) (a)    (84) (b)
      Restructuring costs         79
      Depreciation and
       amortization              184
                                 ---         ---         ---         ---
    Total expenses             5,111      (1,342)        (84)        (24)
                               -----       -----       -----       -----

    Operating
     income/(loss)              (830)      1,342          84          24
    Other income, net            (11)
    Interest expense              80
    Interest income              (12)
                                 ---

    Income/(loss) before
     income taxes               (887)      1,342          84          24
    Provision for
     income taxes                187           5  (f)     26  (f)      -  (f)
                                 ---         ---         ---         ---

    Net income/(loss)        $(1,074)     $1,337         $58         $24
                             =======      ======         ===         ===

    Earnings/(losses)
     per share
      Basic                   $(6.05)      $7.53       $0.33       $0.14
      Diluted                  (6.05)       7.51        0.32        0.14

    Weighted average shares
     outstanding
      Basic                      178         178         178         178
      Diluted                    178         178         178         178



                             Twelve Months Ended December 31, 2008
                             -------------------------------------

                               Legacy      Restructuring          As
                             Adjustments      Costs            Adjusted
                             -----------   -------------       --------
    Net revenues
      Vacation ownership
       interest sales                                           $1,463
      Service fees and
       membership                                                1,705
      Franchise fees                                               514
      Consumer financing                                           426
      Other                                                        173
                                      -                -           ---
    Net revenues                      -                -         4,281
                                      -                -         -----

    Expenses
      Operating                                                  1,622
      Cost of vacation
       ownership interests                                         278
      Consumer financing
       interest                                                    131
      Marketing and
       reservation                                                 830
      General and
       administrative                18  (d)                       555
      Goodwill and other
       impairments                                                   -
      Restructuring costs                            (79) (e)        -
      Depreciation and
       amortization                                                184
                                     --              ---           ---
    Total expenses                   18              (79)        3,600
                                     --              ---         -----

    Operating
     income/(loss)                  (18)              79           681
    Other income, net                                              (11)
    Interest expense                                                80
    Interest income                                                (12)
                                                                   ---

    Income/(loss) before
     income taxes                   (18)              79           624
    Provision for
     income taxes                   (12) (f)          30  (f)      236
                                    ---              ---           ---

    Net income/(loss)               $(6)             $49          $388
                                    ===              ===          ====

    Earnings/(losses)
     per share
      Basic                      $(0.03)           $0.28         $2.19
      Diluted                     (0.03)            0.28          2.18

    Weighted average shares
     outstanding
      Basic                         178              178           178
      Diluted                       178              178           178


    --------------
    Note: EPS amounts may not foot across due to rounding.
    (a) Represents a non-cash goodwill impairment charge for Vacation
        Ownership to reflect reduced future cash flow estimates.
    (b) Represents (i) non-cash impairment charges of $36 million ($28
        million, net of tax) for Vacation Exchange and Rentals due to
        trademark and fixed asset write downs related to the Company's
        vacation rentals businesses and the write-off of the Company's
        investment in a joint venture, (ii) a non-cash impairment charge of
        $28 million ($17 million, net of tax) for Vacation Ownership due to
        the Company's initiative to rebrand its vacation ownership
        trademarks to the Wyndham brand, (iii) a non-cash impairment
        charge of $16 million ($10 million, net of tax) for Lodging
        related to the write down of franchise agreements of one of the
        Company's brands and (iv) a non-cash impairment charge of
        $4 million ($3 million, net of tax) for Vacation Ownership related to
        the termination of a development project.
    (c) Represents a cash charge for Vacation Exchange and Rentals due to
        foreign currency losses.
    (d) Relates to the net benefit from the resolution of and adjustment
        to certain contingent liabilities and assets.
    (e) Relates to costs incurred as a result of various strategic
        initiatives approved by the Company and commenced during the third
        quarter of 2008.
    (f) Relates to the tax effect of the adjustments.



                                                                      Table 8
                                                                      (3 of 4)

                           Wyndham Worldwide Corporation
                          NON-GAAP FINANCIAL INFORMATION
                       (In millions, except per share data)

                                        Three Months Ended December 31,  2007
                                        -------------------------------------

                                          As           Legacy           As
                                        Reported     Adjustments     Adjusted
                                        --------     -----------     --------
    Net revenues
      Vacation ownership interest
       sales                                $383                       $383
      Service fees and membership            387                        387
      Franchise fees                         118                        118
      Consumer financing                      96                         96
      Other                                   48                         48
                                              --            -            --
    Net revenues                           1,032            -         1,032
                                           -----            -         -----

    Expenses
      Operating                              387                        387
      Cost of vacation ownership
       interests                              80                         80
      Consumer financing interest             33                         33
      Marketing and reservation              199                        199
      General and administrative             100           41  (b)      141
      Depreciation and amortization           44                         44
                                              --           --            --
    Total expenses                           843           41           884
                                             ---          ---           ---

    Operating income                         189          (41)          148
    Other income, net                          1                          1
    Interest expense                          17                         17
    Interest income                           (2)                        (2)
                                              --                         --

    Income before income taxes               173          (41)          132
    Provision for income taxes                69          (20) (c)       49
                                             ---          ---           ---

    Net income                              $104         $(21)          $83
                                            ====         ====           ===

    Earnings per share
      Basic                                $0.59       $(0.12)        $0.47
      Diluted                               0.58        (0.12)         0.46

    Weighted average shares
     outstanding
      Basic                                  178          178           178
      Diluted                                179          179           179


    --------------
    Note: EPS amounts may not foot across due to rounding.
    (a) Represents the costs incurred in connection with the Company's
        separation from Cendant (now Avis Budget Group).
    (b) Relates to the net benefit from the resolution of certain contingent
        liabilities.
    (c) Relates to the tax effect of the adjustments.



                                                                      Table 8
                                                                      (4 of 4)

                           Wyndham Worldwide Corporation
                          NON-GAAP FINANCIAL INFORMATION
                       (In millions, except per share data)

                                   Twelve Months Ended December 31, 2007
                              -----------------------------------------------
                                          Separation
                                As       and Related     Legacy         As
                              Reported   Adjustments   Adjustments   Adjusted
                              --------   -----------   -----------   --------
    Net revenues
      Vacation ownership
       interest sales          $1,666                                  $1,666
      Service fees and
       membership               1,619                                   1,619
      Franchise fees              523                                     523
      Consumer financing          358                                     358
      Other                       194                                     194
                                  ---            -            -           ---
    Net revenues                4,360            -            -         4,360
                                -----            -            -         -----

    Expenses
      Operating                 1,632                                   1,632
      Cost of vacation
       ownership interests        376                                     376
      Consumer financing
       interest                   110                                     110
      Marketing and
       reservation                831                                     831
      General and
       administrative             519                        46  (b)      565
      Separation and
       related costs               16          (16) (a)                     -
      Depreciation and
       amortization               166                                     166
                                  ---          ---           --           ---
    Total expenses              3,650          (16)          46         3,680
                                -----        -----        -----         -----

    Operating income              710           16          (46)          680
    Other income, net              (7)                                     (7)
    Interest expense               73                                      73
    Interest income               (11)                                    (11)
                                  ---                                     ---

    Income before income
     taxes                        655           16          (46)          625
    Provision for income
     taxes                        252            6  (c)     (20) (c)      238
                                  ---          ---          ---           ---

    Net income                   $403          $10         $(26)         $387
                                 ====          ===         ====          ====

    Earnings per share
      Basic                     $2.22        $0.05       $(0.14)        $2.13
      Diluted                    2.20         0.05        (0.14)         2.12

    Weighted average shares
     outstanding
      Basic                       181          181          181           181
      Diluted                     183          183          183           183


    --------------
    Note: EPS amounts may not foot across due to rounding.
    (a) Represents the costs incurred in connection with the Company's
        separation from Cendant (now Avis Budget Group).
    (b) Relates to the net benefit from the resolution of certain contingent
        liabilities and assets.
    (c) Relates to the tax effect of the adjustments.

SOURCE  Wyndham Worldwide Corporation

    -0-                           02/13/2009
    /CONTACT:  Investor contact: Margo C. Happer, Senior Vice President,
Investor Relations, +1-973-753-6472, Margo.Happer@wyndhamworldwide.com, Press
contact: Betsy O'Rourke, Senior Vice President, Marketing and Communications,
+1-973-753-7422, Betsy.O'Rourke@wyndhamworldwide.com, both of Wyndham
Worldwide Corporation  /
    /Web Site:  http://www.wyndhamworldwide.com /
    (WYN)

CO:  Wyndham Worldwide Corporation

ST:  New Jersey
IN:  HRT TRA LEI
SU:  ERN ERP CCA

PR
-- NY70008 --
0008 02/13/2009 07:00 EST http://www.prnewswire.com