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Wyndham Worldwide Reports Second Quarter 2009 Results

PARSIPPANY, N.J., July 29 /PRNewswire-FirstCall/ -- Wyndham Worldwide Corporation (NYSE: WYN) today announced results for the three months ended June 30, 2009.

    SECOND QUARTER 2009 HIGHLIGHTS:

    --  The Company generated diluted adjusted earnings per share (EPS) of
        $0.41, compared with Company-issued guidance of $0.36 - $0.41
    --  The Company reaffirms full-year 2009 revenue and adjusted EBITDA
        guidance
    --  Wyndham Hotel Group's concentration in the economy and mid-scale
        segments led it to outperform the overall industry average domestic
        revenue per available room (RevPAR), posting a decline of 13.6%
        compared with a decline of 19.5%, as reported by Smith Travel Research
    --  Group RCI adjusted EBITDA, excluding the net effect of foreign
        currency impacts, increased 30%
    --  Volume per guest (VPG) at Wyndham Vacation Ownership increased 17%,
        reflecting strong pricing and higher close rates

    --  In May 2009, the Company successfully completed $480 million of debt
        issuances maturing in 2012 and 2014; increasing available capacity on
        its revolving credit facility to approximately $840 million as of June
        30, 2009

"Wyndham Worldwide delivered strong second quarter results," said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. "Our diversified business model has proved to be flexible and efficient. In addition, we are well positioned to capitalize on an economic recovery."

SECOND QUARTER 2009 OPERATING RESULTS

Second quarter revenues of $920 million declined by 19% from the prior-year period, due to continued weakness in the global lodging industry; unfavorable foreign exchange rate movements which negatively impacted the vacation exchange and rental business; and the previously announced initiative to reduce sales in the Company's vacation ownership business.

Reported net income for the second quarter of 2009 was $71 million, or $0.39 diluted EPS, compared with net income of $98 million, or $0.55 diluted EPS, for the second quarter of 2008.

Adjusted net income for the second quarter of 2009 was $75 million, or $0.41 diluted EPS, compared with adjusted net income of $94 million, or $0.53 diluted EPS, for the second quarter of 2008. Second quarter 2009 adjusted EPS excludes the after-tax impact of $4 million in restructuring costs and legacy items. Second quarter 2008 adjusted EPS excludes the after-tax net benefit of $4 million related to legacy items.

    BUSINESS UNIT RESULTS

    Lodging (Wyndham Hotel Group)

Revenues were $174 million in the second quarter of 2009, a decline of 13% compared with the second quarter of 2008, primarily reflecting a worldwide decline in RevPAR and lower property management reimbursable revenues.

In constant currency, second quarter 2009 system-wide RevPAR decreased 14.7%, reflecting declines of 13.6% and 18.1% in domestic and international RevPAR, respectively. Including the impact of foreign currency, system-wide RevPAR declined 16.7% in the second quarter of 2009.

Second quarter 2009 EBITDA was $50 million, a 19% decline from the second quarter of 2008, primarily driven by the decline in worldwide RevPAR and lower other franchise fees, partly offset by the timing of marketing expenses.

As of June 30, 2009, the Company's hotel system consisted of over 7,000 properties and 590,200 rooms, of which 21% were international. The development pipeline included approximately 1,000 hotels and 111,000 rooms, of which 50% were new construction and 41% were international.

Vacation Exchange and Rentals (Group RCI)

Revenues were $280 million in the second quarter of 2009, an 11% decrease compared with the second quarter of 2008, primarily related to the impact of unfavorable foreign currency movements. In constant currency, revenues decreased only 1%, as favorability in vacation rental revenues was offset by lower ancillary revenues.

Annual dues and exchange revenues were $112 million, relatively flat in constant currency compared with the second quarter of 2008 reflecting a 3% increase in the average number of members and a 4% decline in revenue per member. Including the impact of foreign currency, revenues declined 6% from the second quarter of 2008.

Vacation rental revenues were $137 million, an increase of $7 million, or 5%, in constant currency compared with the second quarter of 2008, driven by a 3% increase in the average net price per rental and a 2% increase in rental transaction volume. Including the impact of foreign currency, revenues decreased 10% from the prior year period.

Second quarter 2009 EBITDA increased 4% to $56 million, compared with $54 million in the second quarter of 2008. Excluding $2 million of restructuring costs, second quarter adjusted EBITDA was $58 million, a 7% increase from the prior year period. Excluding a $12 million unfavorable net effect of foreign currency, adjusted EBITDA would have increased $16 million, or 30%, from the second quarter of 2008, reflecting cost savings.

Vacation Ownership (Wyndham Vacation Ownership)

Gross Vacation Ownership Interest (VOI) sales were $327 million for the second quarter of 2009, a 39% decline from the second quarter of 2008. This decrease was primarily driven by the previously announced initiative to scale down our sales in response to the disjointed capital markets, which included a refocusing of sales and marketing efforts that resulted in fewer tours.

Total segment revenues were $467 million in the second quarter of 2009, down 25% from the second quarter of 2008, primarily reflecting the previously mentioned lower tour flow. This was partially offset by a $42 million favorable gross impact from the recognition of revenue that was previously deferred under the percentage-of-completion (POC) method of accounting and a 17% increase in VPG from the second quarter of 2008. Under the POC method of accounting for the sale of vacation ownership interests, the Company recognized $37 million of previously deferred revenue during the second quarter of 2009, while second quarter 2008 reported revenues were reduced by $5 million of deferred revenue.

EBITDA for the second quarter of 2009 was $107 million, down 4% from the second quarter of 2008, reflecting a $20 million impact from the net increase in the recognition of revenue previously deferred under the POC method of accounting, offset by the net impact of the planned reduction of VOI sales volume. Excluding $1 million of restructuring costs, second quarter 2009 adjusted EBITDA was $108 million, compared to adjusted EBITDA of $112 million in the second quarter of 2008.

Other Items

Net interest expense in the second quarter of 2009 was $24 million, a $9 million increase from the second quarter of 2008 due to higher interest rates, primarily reflecting the impact of the long-term debt issuances in May 2009, the proceeds of which were used to reduce revolving credit facility borrowings, and lower capitalized interest. Depreciation and amortization declined $1 million year-over-year to $45 million in the second quarter of 2009.

    Balance Sheet Information as of June 30, 2009:
    --  Cash and cash equivalents of approximately $175 million compared with
        $135 million from December 31, 2008
    --  Vacation ownership contract receivables, net, of $3.1 billion compared
        with $3.3 billion at December 31, 2008
    --  Vacation ownership and other inventory of approximately $1.3 billion
        unchanged from December 31, 2008
    --  Securitized vacation ownership debt of $1.6 billion compared with $1.8
        billion at December 31, 2008

    --  Other debt of $1.9 billion, compared with $2.0 billion at December 31,
        2008; remaining borrowing capacity on revolving credit facility was
        approximately $840 million compared with approximately $290 million as
        of December 31, 2008

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

Guidance

For the third quarter of 2009, the Company expects adjusted EPS of $0.53 - $0.57, based on weighted average shares of 182 million.

    The Company reaffirms full-year 2009 guidance:
    --  Revenues of $3.5 - $3.9 billion

    --  Adjusted EBITDA of $760 - $810 million

The guidance reflects assumptions used for internal planning purposes. All guidance excludes legacy items and restructuring costs, if any, which may have a positive or negative impact on reported results. If economic conditions improve or deteriorate materially from current levels, these assumptions and our guidance may change materially. It is not practicable to provide a reconciliation of forecasted adjusted EBITDA to the most directly comparable GAAP measure because certain items cannot be reasonably estimated or predicted at this time. Any such items could be significant to our financial results.

Conference Call Information

Wyndham Worldwide Corporation will hold a conference call with investors to discuss this news on Wednesday, July 29, 2009 at 8:30 a.m. EDT. Listeners can access the webcast live through the Company's website at www.wyndhamworldwide.com/investors/. The conference call also may be accessed by dialing (800) 369-1781 and providing the pass code "Wyndham." Listeners are urged to call at least 10 minutes prior to the scheduled start time. An archive of this webcast will be available at the website for approximately 90 days beginning at 12:00 p.m. EDT on July 29, 2009. A telephone replay will be available at (800) 229-6292 beginning at 12:00 p.m. EDT on July 29, 2009, until 5:00 p.m. EDT on September 15, 2009; callers must provide the pass code "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. A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the financial tables section of the press release.

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 over 7,000 franchised hotels and approximately 590,200 hotel rooms worldwide. Group RCI offers its 3.8 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 25,500 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.

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 Annual Report on Form 10-Q, filed with the SEC on May 7, 2009. 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 before depreciation and amortization,
    interest expense (excluding consumer financing interest), interest income
    (excluding consumer financing interest) and income taxes, each of which
    is presented on the Company's Consolidated Statements of Income.  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 for the three and
    six months ended June 30, 2009 and 2008:


                                 Three Months Ended June 30,
                                 ---------------------------
                               2009                       2008
                               ----                       ----
                          Net                        Net
                       Revenues    EBITDA  (d)    Revenues    EBITDA
                       ---------  --------        ---------  --------
    Lodging               $174       $50             $200       $62
    Vacation Exchange
     and Rentals           280        56              314        54
    Vacation
     Ownership             467       107              621       112
                           ---       ---              ---       ---
         Total
          Reportable
          Segments         921       213            1,135       228
    Corporate and
     Other (a) (b)          (1)      (17)              (3)       (7)
                            --       ---               --        --
         Total
          Company         $920      $196           $1,132      $221
                          ====      ====           ======      ====

    Reconciliation of
     EBITDA to Net Income
    ---------------------

    EBITDA                          $196                       $221
    Depreciation and
     amortization                     45                         46
    Interest expense                  26                         18
    Interest income                   (2)                        (3)
                                      --                         --
    Income before income taxes       127                        160
    Provision for income taxes        56                         62
                                      --                         --
    Net income                       $71                        $98
                                     ===                        ===


                                  Six Months Ended June 30,
                                  -------------------------
                               2009                       2008
                               ----                       ----
                          Net                        Net
                       Revenues    EBITDA  (e)    Revenues    EBITDA
                       ---------  --------        ---------  --------
    Lodging               $328       $85             $370      $108
    Vacation Exchange
     and Rentals           566       132              654       147
    Vacation
     Ownership             929       151            1,124       120 (f)
                           ---       ---            -----       ---
         Total
          Reportable
          Segments       1,823       368            2,148       375
    Corporate and
     Other (a) (c)          (2)      (39)              (4)      (24)
                            --       ---               --       ---
         Total
          Company       $1,821      $329           $2,144      $351
                        ======      ====           ======      ====

    Reconciliation of
     EBITDA to Net Income
    ---------------------

    EBITDA                          $329                       $351
    Depreciation and
     amortization                     88                         90
    Interest expense                  45                         37
    Interest income                   (4)                        (5)
                                      --                         --
    Income before income taxes       200                        229
    Provision for income taxes        84                         89
                                      --                         --
    Net income                      $116                       $140
                                    ====                       ====

    ----------
    (a)  Includes the elimination of transactions between segments.
    (b)  Includes $2 million, net of tax, of a net expense and $7 million
         ($4 million, net of tax) of a net benefit during the three months
         ended June 30, 2009 and 2008, respectively, related to the
         resolution of and adjustment to certain contingent liabilities and
         assets.
    (c)  Includes $3 million ($3 million, net of tax) of a net expense and
         $4 million ($1 million, net of tax) of a net benefit during the
         six months ended June 30, 2009 and 2008, respectively, related to
         the resolution of and adjustment to certain contingent liabilities
         and assets.
    (d)  Includes restructuring costs of $2 million and $1 million for
         Vacation Exchange and Rentals and Vacation Ownership, respectively.
         The after-tax impact of such costs is $2 million.
    (e)  Includes restructuring costs of $3 million, $6 million, $36 million
         and $1 million for Lodging, Vacation Exchange and Rentals, Vacation
         Ownership and Corporate and Other, respectively.  The after-tax
         impact of such costs is $29 million.
    (f)  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.



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

                                              Three Months    Six Months
                                                  Ended          Ended
                                                June 30,        June 30,
                                              ------------    ----------
                                               2009   2008   2009     2008
                                               ----   ----   ----     ----
    Net revenues
      Service fees and membership              $397   $424   $797     $876
      Vacation ownership interest sales         242    414    482      708
      Franchise fees                            117    136    216      249
      Consumer financing                        109    104    217      203
      Other                                      55     54    109      108
                                                 --     --    ---      ---
    Net revenues                                920  1,132  1,821    2,144
                                                ---  -----  -----    -----

    Expenses
      Operating                                 394    438    767      845
      Cost of vacation ownership interests       33     80     82      140
      Consumer financing interest (a)            35     27     67       60
      Marketing and reservation                 137    218    275      427
      General and administrative (b) (c)        122    152    258      298
      Asset impairments (d)                       -      -      -       28
      Restructuring costs (e)                     3      -     46        -
      Depreciation and amortization              45     46     88       90
                                                 --     --     --       --
    Total expenses                              769    961  1,583    1,888
                                                ---    ---  -----    -----

    Operating income                            151    171    238      256
    Other income, net                             -     (4)    (3)      (5)
    Interest expense                             26     18     45       37
    Interest income                              (2)    (3)    (4)      (5)
                                                 --     --     --       --

    Income before income taxes                  127    160    200      229
    Provision for income taxes                   56     62     84       89
                                                 --     --     --       --

    Net income                                  $71    $98   $116     $140
                                                ===    ===   ====     ====

    Earnings per share
      Basic                                   $0.40  $0.55  $0.65    $0.79
      Diluted                                  0.39   0.55   0.64     0.79

    Weighted average shares outstanding
      Basic                                     179    177    178      177
      Diluted                                   182    178    180      178

    ----------
    (a)  Prior to periods ending September 30, 2008, such amounts were
         included as a component of Operating Expenses.
    (b)  Includes $2 million, net of tax, of a net expense and $7 million
         ($4 million, net of tax) of a net benefit during the three months
         ended June 30, 2009 and 2008, respectively, related to the
         resolution of and adjustment to certain contingent liabilities and
         assets.
    (c)  Includes $3 million ($3 million, net of tax) of a net expense and
         $4 million ($1 million, net of tax) of a net benefit during the six
         months ended June 30, 2009 and 2008, respectively, related to the
         resolution of and adjustment to certain contingent liabilities and
         assets.
    (d)  Relates to a non-cash impairment charge ($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 commenced by the Company during 2008.  During the three
         and six months ended June 30, 2009, such amount, net of tax, was $2
         million and $29 million, respectively.



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

                      Year    Q1        Q2        Q3        Q4      Full Year
                      ----    --        --        --        --      ---------
    Lodging (a)
      Number of
       Rooms (b)      2009  588,500   590,200       N/A       N/A         N/A
                      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

      RevPAR          2009   $27.69    $32.38       N/A       N/A         N/A
                      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

      Royalty,
       Marketing and
       Reservation
       Revenues
       (in 000s)      2009  $95,368  $111,030       N/A       N/A         N/A
                      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

    Vacation
    Exchange
    and Rentals
      Average Number
       of Members
       (in 000s)      2009    3,789     3,795       N/A       N/A         N/A
                      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

      Annual Dues
       and Exchange
       Revenue Per
       Member         2009  $134.38   $117.59       N/A       N/A         N/A
                      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

      Vacation
       Rental
       Transactions
       (in 000s)      2009      387       324       N/A       N/A         N/A
                      2008      387       319       360       282       1,347
                      2007      398       326       360       293       1,376
                      2006      385       310       356       293       1,344

      Average Net
       Price Per
       Vacation
       Rental         2009  $335.54   $422.00       N/A       N/A         N/A
                      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

    Vacation
     Ownership
      Gross Vacation
       Ownership
       Interest Sales
       (in 000s)      2009 $280,000  $327,000       N/A       N/A         N/A
                      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

      Tours           2009  137,000   164,000       N/A       N/A         N/A
                      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

      Volume Per
       Guest (VPG)    2009   $1,866    $1,854       N/A       N/A         N/A
                      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

    ----------
    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) and Baymont
         Inn & Suites (April 2006) 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 3)

                           Wyndham Worldwide Corporation
                                  ADDITIONAL DATA


                      Year    Q1        Q2        Q3        Q4      Full Year
                      ----    --        --        --        --      ---------
    Lodging (a)
      Number of
       Properties (b) 2009    6,990     7,020       N/A       N/A         N/A
                      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

    Vacation
    Ownership
      Deferred
       Revenues
       (in 000s) (c)  2009  $66,516   $37,140       N/A       N/A         N/A
                      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)

      Provision for
       Loan Losses
       (in 000s) (d)  2009 $107,202  $121,641       N/A       N/A         N/A
                      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

    ----------
    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) and Baymont Inn & Suites (April 2006)
         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)  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.
    (d)  Represents provision for estimated losses on vacation ownership
         contract receivables originated during the period, which is recorded
         as a contra revenue to vacation ownership interest sales on the
         Consolidated Statements of Income.


                                                                      Table 3
                                                                      (3 of 3)

                           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 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
                      Revenue Detail by Reportable Segment
                                  (In millions)


                                                       2009
                                                       ----
                                       Q1     Q2      Q3      Q4      Year
                                     ------ ------  ------  ------  --------
    Lodging
      Royalties and Franchise Fees      $57    $68     N/A     N/A       N/A
      Marketing, Reservation and
       Wyndham Rewards Revenues (a)      54     66     N/A     N/A       N/A
      Property Management
       Reimbursable Revenues (b)         22     23     N/A     N/A       N/A
      Ancillary Revenues (c)             21     17     N/A     N/A       N/A
                                     ------ ------  ------  ------    ------
      Total Lodging                     154    174     N/A     N/A       N/A
                                     ------ ------  ------  ------    ------

    Vacation Exchange and Rentals
      Exchange Revenues                 127    112     N/A     N/A       N/A
      Rental Revenues                   130    137     N/A     N/A       N/A
      Ancillary Revenues (d)             30     31     N/A     N/A       N/A
                                     ------ ------  ------  ------    ------
      Total Vacation Exchange and
       Rentals                          287    280     N/A     N/A       N/A
                                     ------ ------  ------  ------    ------

    Vacation Ownership
      Vacation Ownership Interest
       Sales                            239    242     N/A     N/A       N/A
      Consumer Financing                109    109     N/A     N/A       N/A
      Property Management Fees           91     94     N/A     N/A       N/A
      Ancillary Revenues (e)             23     22     N/A     N/A       N/A
                                     ------ ------  ------  ------    ------
      Total Vacation Ownership          462    467     N/A     N/A       N/A
                                     ------ ------  ------  ------    ------
    Total Reportable Segments          $903   $921     N/A     N/A       N/A
                                     ====== ======  ======  ======    ======


                                                       2008
                                                       ----
                                       Q1     Q2      Q3      Q4      Year
                                     ------ ------  ------  ------  --------
    Lodging
      Royalties and Franchise Fees      $64    $78     $88     $66      $297
      Marketing, Reservation and
       Wyndham Rewards Revenues (a)      60     75      84      61       280
      Property Management
       Reimbursable Revenues (b)         27     26      25      21       100
      Ancillary Revenues (c)             19     21      16      22        76
                                         --     --      --      --        --
      Total Lodging                     170    200     213     170       753
                                        ---    ---     ---     ---       ---

    Vacation Exchange and Rentals
      Exchange Revenues                 137    119     114     101       471
      Rental Revenues                   160    153     199     113       624
      Ancillary Revenues (d)             44     42      41      36       164
                                         --     --      --      --       ---
      Total Vacation Exchange and
       Rentals                          341    314     354     250     1,259
                                        ---    ---     ---     ---     -----

    Vacation Ownership
      Vacation Ownership Interest
       Sales                            294    414     446     309     1,463
      Consumer Financing                 99    104     111     112       426
      Property Management Fees           85     84      89      89       346
      Ancillary Revenues (e)             26     19      15     (18)       43
                                         --     --      --     ---        --
      Total Vacation Ownership          504    621     661     492     2,278
                                        ---    ---     ---     ---     -----
    Total Reportable Segments        $1,015 $1,135  $1,228    $912    $4,290
                                     ====== ======  ======    ====    ======


                                                       2007
                                                       ----
                                       Q1     Q2      Q3      Q4      Year
                                     ------ ------  ------  ------  --------
    Lodging
      Royalties and Franchise Fees      $63    $78     $89     $67      $296
      Marketing, Reservation and
       Wyndham Rewards Revenues (a)      60     73      84      64       281
      Property Management
       Reimbursable Revenues (b)         16     22      26      28        92
      Ancillary Revenues (c)             13     13      12      17        56
                                         --     --      --      --        --
      Total Lodging                     152    186     211     176       725
                                        ---    ---     ---     ---       ---

    Vacation Exchange and Rentals
      Exchange Revenues                 135    116     116     112       479
      Rental Revenues                   139    136     182     125       582
      Ancillary Revenues (d)             40     36      38      43       157
                                         --     --      --      --       ---
      Total Vacation Exchange and
       Rentals                          314    288     336     280     1,218
                                        ---    ---     ---     ---     -----

    Vacation Ownership
      Vacation Ownership Interest
       Sales                            373    443     467     383     1,666
      Consumer Financing                 81     88      93      96       358
      Property Management Fees           74     78      79      78       310
      Ancillary Revenues (e)             21     20      32      19        91
                                         --     --      --      --        --
      Total Vacation Ownership          549    629     671     576     2,425
                                        ---    ---     ---     ---     -----
    Total Reportable Segments        $1,015 $1,103  $1,218  $1,032    $4,368
                                     ====== ======  ======  ======    ======


                                                       2006
                                                       ----
                                       Q1     Q2      Q3      Q4      Year
                                     ------ ------  ------  ------  --------
    Lodging
      Royalties and Franchise Fees      $59    $75     $81     $63      $278
      Marketing, Reservation and
       Wyndham Rewards Revenues (a)      58     70      78      60       266
      Property Management
       Reimbursable Revenues (b)         16     20      17      16        69
      Ancillary Revenues (c)             11     11      13      13        48
                                         --     --      --      --        --
      Total Lodging                     144    176     189     152       661
                                        ---    ---     ---     ---       ---

    Vacation Exchange and Rentals
      Exchange Revenues                 125    108     112     110       455
      Rental Revenues                   120    116     158     105       498
      Ancillary Revenues (d)             37     37      40      51       166
                                         --     --      --      --       ---
      Total Vacation Exchange and
       Rentals                          282    261     310     266     1,119
                                        ---    ---     ---     ---     -----

    Vacation Ownership
      Vacation Ownership Interest
       Sales                            309    377     396     379     1,461
      Consumer Financing                 65     70      77      79       291
      Property Management Fees           58     60      66      68       253
      Ancillary Revenues (e)             13     11      12      28        63
                                         --     --      --      --        --
      Total Vacation Ownership          445    518     551     554     2,068
                                        ---    ---     ---     ---     -----
    Total Reportable Segments          $871   $955  $1,050    $972    $3,848
                                       ====   ====  ======    ====    ======

    ----------
    Note: Full year amounts may not foot across due to rounding.
    (a)  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 Table 3 (1 of 3) within Royalty, Marketing
         and Reservation Revenues.  Wyndham Rewards revenues represent fees
         we receive relating to our loyalty program.
    (b)  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.
    (c)  Primarily includes additional services provided to franchisees.
    (d)  Primarily includes fees from additional services provided to
         transacting members, fees from a credit card loyalty program and
         fees generated from programs with affiliated resorts.
    (e)  Primarily includes revenues associated with bonus points/credits
         that are provided as purchase incentives on VOI sales and fees
         generated from other non-core businesses.



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


                   June 30,  March 31,  December 31, September 30, June 30,
                     2009      2009        2008         2008        2008
                   --------- ---------- ------------ ------------- --------

    Securitized
     vacation
     ownership debt
      Term notes      $1,290     $1,165       $1,252        $1,437   $1,727
      Bank conduit
       facilities (a)    340        569          558           647      354
                         ---        ---          ---           ---      ---
    Securitized
     vacation
     ownership
     debt (b)          1,630      1,734        1,810         2,084    2,081
    Less: Current
     portion of
     securitized
     vacation
     ownership debt      288        305          294           324      284
                         ---        ---          ---           ---      ---
    Long-term
     securitized
     vacation
     ownership debt   $1,342     $1,429       $1,516        $1,760   $1,797
                      ======     ======       ======        ======   ======

    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)          30        517          576           305      145
      9.875% senior
       unsecured
       notes (due
       May 2014) (e)     237          -            -             -        -
      3.50% convertible
       notes (due
       May 2012) (f)     253          -            -             -        -
      Vacation
       ownership bank
       borrowings (g)    154        156          159           172      196
      Vacation rentals
       capital leases    135        130          139           143      162
      Other               22         13           13            12       13
                          --         --           --            --       --
    Total debt         1,928      1,913        1,984         1,729    1,613
    Less: Current
     portion of debt     169        166          169           182      207
                         ---        ---          ---           ---      ---
    Long-term debt    $1,759     $1,747       $1,815        $1,547   $1,406
                      ======     ======       ======        ======   ======

    ----------
    (a)  Represents (i) a 364-day, non-recourse vacation ownership bank
         conduit facility with a term through November 2009 and borrowing
         capacity 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
         two years.  At June 30, 2009, our 364-day facility has remaining
         borrowing capacity of $653 million.
    (b)  This debt is collateralized by $2,890 million, $2,981 million,
         $2,906 million, $2,721 million and $2,723 million of underlying
         vacation ownership contract receivables and related assets at
         June 30, 2009, March 31, 2009, December 31, 2008, September 30,
         2008 and June 30, 2008, respectively.
    (c)  The balance at June 30, 2009 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 June 30, 2009, the Company has $29 million of
         outstanding letters of credit and a remaining borrowing capacity of
         $841 million.  The decrease in balance from March 31, 2009 to
         June 30, 2009 is primarily due to the Company's utilization of
         proceeds from the issuance of its 9.875% senior unsecured notes and
         3.50% convertible notes during May 2009.
    (e)  Represents senior unsecured notes issued by the Company during
         May 2009.  The balance at June 30, 2009 represents $250 million
         aggregate principal less $13 million of unamortized discount.
    (f)  Represents cash convertible notes issued by the Company during
         May 2009.  Such balance includes $184 million of debt ($230 million
         aggregate principal less $46 million of unamortized discount) and a
         liability with a fair value of $69 million related to a bifurcated
         conversion feature.
    (g)  Represents a 364-day, AUD 193 million, secured, revolving foreign
         credit facility, which closed during June 2009 and expires in June
         2010.  Such facility replaces the previous secured, revolving
         foreign credit facility which expired in June 2009.  On July 7,
         2009, an additional AUD 20 million of capacity was added to this
         facility, increasing total capacity to AUD 213 million.



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


                    As of and For the Three Months Ended June 30, 2009
                    --------------------------------------------------
                                                             Average
                                                             Revenue
                                                   Average     Per
                      Number   Number   Average     Daily   Available
                        of       of    Occupancy    Rate       Room
         Brand      Properties  Rooms     Rate      (ADR)    (RevPAR)
         -----      ---------- ------- ----------  -------- ----------

      Wyndham
       Hotels and
       Resorts              85  22,562       55.1%  $117.44     $64.66

      Wingate Inn          165  15,109       57.1%   $85.57     $48.87

      Hawthorn Suites       90   8,386       53.3%   $84.88     $45.22

      Ramada               894 116,225       48.3%   $74.04     $35.78

      Baymont              234  19,850       48.3%   $64.64     $31.19

      Days Inn           1,856 149,901       48.5%   $64.45     $31.24

      Super 8            2,116 131,282       51.6%   $56.66     $29.22

      Howard Johnson       475  45,679       42.6%   $62.53     $26.61

      Travelodge           464  34,911       45.6%   $62.23     $28.40

      Microtel Inns &
       Suites              317  22,660       53.5%   $55.17     $29.54

      Knights Inn          317  20,039       39.2%   $43.49     $17.03

      Unmanaged,
       Affiliated
       and Managed,
       Non-Proprietary
       Hotels (*)           11   3,549        N/A       N/A        N/A

                         ----- -------
        Total            7,024 590,153       48.9%   $66.22     $32.38
                         ===== =======


                    As of and For the Three Months Ended June 30, 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  22,412       65.4%  $128.99     $84.40

      Wingate Inn          156  14,289       65.8%   $92.79     $61.09

      Ramada               865 107,272       55.4%   $84.75     $46.98

      Baymont              210  18,067       51.7%   $65.40     $33.82

      Days Inn           1,876 152,892       53.3%   $65.70     $35.05

      Super 8            2,095 129,738       57.3%   $59.83     $34.31

      Howard Johnson       470  45,256       49.4%   $65.12     $32.18

      Travelodge           490  36,666       50.9%   $68.83     $35.03

      Knights Inn          290  19,544       43.8%   $43.45     $19.03

      Unmanaged,
       Affiliated
       and Managed,
       Non-Proprietary
       Hotels (*)           29   5,321        N/A       N/A        N/A

                         ----- -------
        Total            6,563 551,457       54.6%   $71.20     $38.87
                         ===== =======

    ----------
    NOTE: A glossary of terms is included in Table 3 (3 of 3).
    (*)  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.  As of June 30, 2008, amounts
         also include AmeriHost branded properties.



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


                     As of and For the Six Months Ended June 30, 2009
                     ------------------------------------------------
                                                             Average
                                                             Revenue
                                                   Average     Per
                      Number   Number   Average     Daily   Available
                        of       of    Occupancy    Rate       Room
         Brand      Properties  Rooms     Rate      (ADR)    (RevPAR)
         -----      ---------- ------- ----------  -------- ----------

      Wyndham
       Hotels and
       Resorts              85  22,562       53.4%  $120.80     $64.47

      Wingate Inn          165  15,109       53.9%   $85.39     $46.04

      Hawthorn Suites       90   8,386       52.0%   $87.33     $45.37

      Ramada               894 116,225       46.2%   $74.23     $34.29

      Baymont              234  19,850       46.0%   $63.22     $29.10

      Days Inn           1,856 149,901       45.0%   $62.07     $27.90

      Super 8            2,116 131,282       47.6%   $55.76     $26.55

      Howard Johnson       475  45,679       41.2%   $61.31     $25.28

      Travelodge           464  34,911       42.6%   $59.84     $25.49

      Microtel Inns &
       Suites              317  22,660       49.6%   $55.53     $27.54

      Knights Inn          317  20,039       37.6%   $42.35     $15.94

      Unmanaged,
       Affiliated
       and Managed,
       Non-Proprietary
       Hotels (*)           11   3,549        N/A       N/A        N/A

                         ----- -------
        Total            7,024 590,153       45.9%   $65.41     $30.04
                         ===== =======


                     As of and For the Six Months Ended June 30, 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  22,412       63.7%  $123.38     $78.62

      Wingate Inn          156  14,289       62.0%   $92.35     $57.28

      Ramada               865 107,272       52.8%   $82.35     $43.46

      Baymont              210  18,067       48.9%   $65.52     $32.06

      Days Inn           1,876 152,892       49.6%   $63.98     $31.73

      Super 8            2,095 129,738       52.9%   $58.43     $30.93

      Howard Johnson       470  45,256       46.6%   $64.18     $29.91

      Travelodge           490  36,666       48.0%   $68.29     $32.81

      Knights Inn          290  19,544       40.9%   $42.27     $17.28

      Unmanaged,
       Affiliated
       and Managed,
       Non-Proprietary
       Hotels (*)           29   5,321        N/A       N/A        N/A

                         ----- -------
        Total            6,563 551,457       51.1%   $69.53     $35.55
                         ===== =======

    ----------
    NOTE: A glossary of terms is included in Table 3 (3 of 3).
    (*)  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.  As of June 30, 2008, amounts
         also include AmeriHost branded properties.



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

                                        Three Months Ended   Six Months Ended
                                        ------------------   ----------------
                                       March 31,   June 30,       June 30,
                                         2009        2009          2009
                                      ----------  ---------      ---------

    Reported EBITDA                       $134       $196           $329
      Resolution of and adjustment
       to contingent liabilities
       and assets (a)                        4          -              3
      Restructuring costs (b)               43          3             46
                                            --          -             --

    Adjusted EBITDA                       $181       $199           $378
    ---------------                       ----       ----           ----

    Reported PreTax Income                 $74       $127           $200
      Resolution of and adjustment
       to contingent liabilities
       and assets (a)                        4          -              3
      Restructuring costs (b)               43          3             46
                                            --          -             --

    Adjusted PreTax Income                $121       $130           $249
    ----------------------                ----       ----           ----

    Reported Tax Provision                $(29)      $(56)          $(84)
      Resolution of and adjustment
       to contingent liabilities
       and assets (c)                       (2)         2              -
      Restructuring costs (c)              (16)        (1)           (17)
                                           ---         --            ---

    Adjusted Tax Provision                $(47)      $(55)         $(101)
    ----------------------                ----       ----          -----

    Reported Net Income                    $45        $71           $116
      Resolution of and adjustment
       to contingent liabilities
       and assets                            2          2              3
      Restructuring costs                   27          2             29
                                            --          -             --

    Adjusted Net Income                    $74        $75           $148
    -------------------                    ---        ---           ----

    Reported Diluted EPS                 $0.25      $0.39          $0.64
      Resolution of and adjustment
       to contingent liabilities
       and assets                         0.01       0.01           0.02
      Restructuring costs                 0.15       0.01           0.16
                                          ----       ----           ----

    Adjusted Diluted EPS                 $0.41      $0.41          $0.82
    --------------------                 -----      -----          -----

    Diluted Shares                         178        182            180

    ----------
    Note: Amounts may not foot due to rounding.
    (a)  Relates to the net expense from the resolution of and adjustment to
         certain contingent liabilities and assets.
    (b)  Relates to costs incurred as a result of various strategic
         initiatives commenced by the Company during 2008.
    (c)  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)

                                         Three Months Ended   Six Months Ended
                                         ------------------   ----------------
                                         March 31,   June 30,      June 30,
                                           2008        2008         2008
                                        ----------  ---------      --------

    Reported EBITDA                        $130       $221           $351
      Resolution of and adjustment
       to contingent liabilities and
       assets (a)                             3         (7)            (4)
      Trademark impairment (b)               28          -             28
                                             --          -             --

    Adjusted EBITDA                        $161       $214           $375
    ---------------                        ----       ----           ----

    Reported PreTax Income                  $70       $160           $229
      Resolution of and adjustment
       to contingent liabilities and
       assets (a)                             3         (7)            (4)
      Trademark impairment (b)               28          -             28
                                             --          -             --

    Adjusted PreTax Income                 $101       $153           $253
    ----------------------                 ----       ----           ----

    Reported Tax Provision                 $(28)      $(62)          $(89)
      Resolution of and adjustment
       to contingent liabilities and
       assets (c)                             -          3              3
      Trademark impairment (c)              (11)         -            (11)
                                            ---          -            ---

    Adjusted Tax Provision                 $(39)      $(59)          $(97)
    ----------------------                 ----       ----           ----

    Reported Net Income                     $42        $98           $140
      Resolution of and adjustment
       to contingent liabilities and
       assets                                 3         (4)            (1)
      Trademark impairment                   17          -             17
                                             --          -             --

    Adjusted Net Income                     $62        $94           $156
    -------------------                     ---        ---           ----

    Reported Diluted EPS                  $0.24      $0.55          $0.79
      Resolution of and adjustment
       to contingent liabilities and
       assets                              0.01      (0.02)         (0.01)
      Trademark impairment                 0.10          -           0.10
                                           ----          -           ----

    Adjusted Diluted EPS                  $0.35      $0.53          $0.88
    --------------------                  -----      -----          -----

    Diluted Shares                          178        178            178

    ----------
    Note: Amounts may not foot due to rounding.
    (a)  Relates to the net (benefit)/expense from the resolution of and
         adjustment to certain contingent liabilities and assets.
    (b)  Represents an impairment charge due to the Company's initiative to
         rebrand its vacation ownership trademarks to the Wyndham brand.
    (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
                                            June 30, 2009
                                         -------------------
                                      Legacy
                             As     Adjustments    Restructuring        As
                         Reported       (a)           Costs          Adjusted
                         ---------  -----------    -------------     --------
    Net revenues
      Service fees and
       membership             $397                                      $397
      Vacation
       ownership
       interest sales          242                                       242
      Franchise fees           117                                       117
      Consumer financing       109                                       109
      Other                     55                                        55
                                --       --               --              --
    Net revenues               920        -                -             920
                               ---      ---              ---             ---

    Expenses
      Operating                394                                       394
      Cost of vacation
       ownership interests      33                                        33
      Consumer financing
       interest                 35                                        35
      Marketing and
       reservation             137                                       137
      General and
       administrative          122                                       122
      Restructuring costs        3                        (3)  (b)         -
      Depreciation and
       amortization             45                                        45
                                --       --               --              --
    Total expenses             769        -               (3)            766
                               ---      ---              ---             ---

    Operating income           151        -                3             154
    Interest expense            26                                        26
    Interest income             (2)                                       (2)
                               ---      ---              ---             ---

    Income before
     income taxes              127        -                3             130
    Provision for
     income taxes               56       (2)  (c)          1   (c)        55
                                --       --                -              --

    Net income                 $71       $2               $2             $75
                               ===       ==               ==             ===

    Earnings per share
      Basic                  $0.40    $0.01            $0.01           $0.42
      Diluted                 0.39     0.01             0.01            0.41

    Weighted average shares
     outstanding
      Basic                    179      179              179             179
      Diluted                  182      182              182             182

    ----------
    (a)  Relates to the net expense from the resolution of and adjustment to
         certain contingent liabilities and assets.
    (b)  Relates to costs incurred as a result of various strategic
         initiatives commenced by the Company during 2008.
    (c)  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)

                                     Six Months Ended June 30, 2009
                                     ------------------------------

                              As       Legacy      Restructuring        As
                          Reported   Adjustments       Costs         Adjusted
                          ---------  -----------   -------------     --------
    Net revenues
      Service fees and
       membership              $797                                      $797
      Vacation ownership
       interest sales           482                                       482
      Franchise fees            216                                       216
      Consumer financing        217                                       217
      Other                     109                                       109
                                ---       --               --             ---
    Net revenues              1,821        -                -           1,821
                              -----      ---              ---           -----

    Expenses
      Operating                 767                                       767
      Cost of vacation
       ownership interests       82                                        82
      Consumer financing
       interest                  67                                        67
      Marketing and
       reservation              275                                       275
      General and
       administrative           258       (3)  (a)                        255
      Restructuring costs        46                       (46)  (b)         -
      Depreciation and
       amortization              88                                        88
                                 --       --              ---              --
    Total expenses            1,583       (3)             (46)          1,534
                              -----       --              ---           -----

    Operating income            238        3               46             287
    Other income, net            (3)                                       (3)
    Interest expense             45                                        45
    Interest income              (4)                                       (4)
                                ---       ---             ---             ---

    Income before income
     taxes                      200        3               46             249
    Provision for income
     taxes                       84        -   (c)         17   (c)       101
                                ---      ---              ---             ---

    Net income                 $116       $3              $29            $148
                               ====       ==              ===            ====

    Earnings per share
      Basic                   $0.65    $0.02            $0.16           $0.83
      Diluted                  0.64     0.02             0.16            0.82

    Weighted average shares
     outstanding
      Basic                     178      178              178             178
      Diluted                   180      180              180             180

    ----------
    (a)  Relates to the net expense from the resolution of and adjustment to
         certain contingent liabilities and assets.
    (b)  Relates to costs incurred as a result of various strategic
         initiatives commenced by the Company during 2008.
    (c)  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 June 30, 2008
                                      --------------------------------


                                       As         Legacy            As
                                   Reported     Adjustments      Adjusted
                                   ---------    -----------      --------
    Net revenues
      Service fees and membership       $424                         $424
      Vacation ownership interest
       sales                             414                          414
      Franchise fees                     136                          136
      Consumer financing                 104                          104
      Other                               54                           54
                                          --           --              --
    Net revenues                       1,132            -           1,132
                                       -----        -----           -----

    Expenses
      Operating                          438                          438
      Cost of vacation ownership
       interests                          80                           80
      Consumer financing interest         27                           27
      Marketing and reservation          218                          218
      General and administrative         152            7   (a)       159
      Depreciation and
       amortization                       46                           46
                                          --           --              --
    Total expenses                       961            7             968
                                         ---          ---             ---

    Operating income                     171           (7)            164
    Other income, net                     (4)                          (4)
    Interest expense                      18                           18
    Interest income                       (3)                          (3)
                                          --           --              --

    Income before income taxes           160           (7)            153
    Provision for income taxes            62           (3)  (b)        59
                                          --           --              --

    Net income                           $98          $(4)            $94
                                         ===          ===             ===

    Earnings per share
      Basic                            $0.55       $(0.02)          $0.53
      Diluted                           0.55        (0.02)           0.53

    Weighted average shares
     outstanding
      Basic                              177          177             177
      Diluted                            178          178             178

    ----------
    (a)  Relates to the net benefit from the resolution of and adjustment to
         certain contingent liabilities and assets.
    (b)  Relates to the tax effect of the adjustment.



                                                                    Table 8
                                                                    (4 of 4)

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

                                  Six Months Ended June 30, 2008
                                  ------------------------------



                           As         Legacy       Trademark          As
                       Reported     Adjustments    Impairment      Adjusted
                       ---------    -----------    ----------      --------
    Net revenues
      Service fees
       and membership       $876                                       $876
      Vacation
       ownership
       interest sales        708                                        708
      Franchise fees         249                                        249
      Consumer
       financing             203                                        203
      Other                  108                                        108
                             ---      ---               ---             ---
    Net revenues           2,144        -                 -           2,144
                           -----    -----             -----           -----

    Expenses
      Operating              845                                        845
      Cost of vacation
       ownership interests   140                                        140
      Consumer financing
       interest               60                                         60
      Marketing and
       reservation           427                                        427
      General and
       administrative        298        4   (a)                         302
      Trademark
       impairment             28                        (28)  (b)         -
      Depreciation
       and amortization       90                                         90
                              --       --                --              --
    Total expenses         1,888        4               (28)          1,864
                           -----       --               ---           -----

    Operating income         256       (4)               28             280
    Other income, net         (5)                                        (5)
    Interest expense          37                                         37
    Interest income           (5)                                        (5)
                              --       --                --              --

    Income before
     income taxes            229       (4)               28             253
    Provision for
     income taxes             89       (3)  (c)          11   (c)        97
                              --       --                --              --

    Net income              $140      $(1)              $17            $156
                            ====      ===               ===            ====

    Earnings per share
      Basic                $0.79   $(0.01)            $0.10           $0.88
      Diluted               0.79    (0.01)             0.10            0.88

    Weighted average shares
     outstanding
      Basic                  177      177               177             177
      Diluted                178      178               178             178

    ----------
    (a)  Relates to the net benefit from the resolution of and adjustment to
         certain contingent liabilities and assets.
    (b)  Represents an impairment charge due to the Company's initiative to
         rebrand its vacation ownership trademarks to the Wyndham brand.
    (c)  Relates to the tax effect of the adjustments.

SOURCE  Wyndham Worldwide Corporation

    -0-                           07/29/2009
    /CONTACT:  Investor contact: Margo C. Happer, Senior Vice President,
Investor Relations, Wyndham Worldwide Corporation, +1-973-753-6472,
Margo.Happer@wyndhamworldwide.com; or Press contact: Sandra Kelder, Senior
Vice President, Corporate Communications, Wyndham Worldwide Corporation,
+1-973-753-8142, Sandra.Kelder@wyndhamworldwide.com/
    /Web Site:  http://www.wyndhamworldwide.com /
    (WYN)

CO:  Wyndham Worldwide Corporation

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

PR
-- NY52669 --
2669 07/29/2009 07:07 EDT http://www.prnewswire.com