Steve Case's Revolution Acquires Flexcar: Lee Iacocca to Become Senior Advisor; Deal to Accelerate Car-Sharing Coast-to-Coast

WASHINGTON, Aug. 31, 2005 -- Revolution LLC, the Washington-based investment firm owned by Steve Case, announced today that it has acquired the controlling interest in Flexcar, the U.S. car-sharing pioneer. In addition, auto industry legend Lee Iacocca will become a Senior Advisor, and an Investor/Director of Flexcar. The transaction will allow Flexcar to accelerate the growth of its locations, car fleet and membership to become the first truly national car-sharing firm.

"Revolution's goal is to give consumers more choice, convenience and control, and Flexcar fits perfectly with our strategy," said Case. "Car-sharing is poised for explosive growth, as it enables consumers to save on the expense and hassle of car ownership, while reducing traffic and pollution. Based on recent national surveys and our analysis of the market, we believe Flexcar can grow to serve 1 million members, sharing 20,000 cars, five years from now. And Lee Iacocca's leadership and wisdom will play an important part in helping Flexcar to achieve these goals."

"Car-sharing is a great option for millions of Americans, especially those who live in cities," said Iacocca, the former Chairman and CEO of Chrysler Corporation. "I look forward to working with Steve Case to build Flexcar into a great success and an iconic brand name that becomes synonymous with car- sharing."

Flexcar to Grow with More Markets, More Cars, More Hybrids

Flexcar currently operates 450 cars in more than 30 cities in six major metropolitan areas, including Seattle, Portland, Los Angeles, San Diego, Chicago and Washington, D.C. Now, with Revolution's backing, Flexcar will be able to:

   -- Immediately add cars in all of its existing locations, with a more
      than 50% increase planned in the Washington D.C., Los Angeles and San
      Diego areas in the next 100 days alone;

   -- Expand to new markets including New York, Boston, Miami, Philadelphia,
      San Francisco, Austin, and more by the end of 2006;

   -- Build one of the largest privately-owned fleets of gas-saving hybrid
      cars, helping to promote America's energy independence and reducing
      air pollution.

"Car-sharing is already a significant and trusted transportation option for tens of thousands of urban businesses and individuals," said Lance Ayrault, president and CEO of Flexcar. "With Revolution's support, we will accelerate our growth plans and bring car-sharing to millions of Americans that currently do not have that option available to them."

Flexcar to Offer New Services and a Revamped Website

In addition to the expansion of cities and cars, Revolution's capital and expertise will allow Flexcar to begin offering its members new features and services. These include:

   -- Onboard navigation systems in cars added to the fleet in 2006

   -- Free iPod adaptors for in-car iPod use by Flexcar's most frequent
      users

   -- A substantially improved reservations website, offering members
      advanced online navigation, trip-planning tools, and other services

   -- Special offers to build and connect the Flexcar community of members

Improving the Flexcar website is a special priority for Case, the co-founder of AOL. "Given that Flexcar members aren't just sharing a car, they are also participating in a community of like-minded people, we plan to relaunch the Flexcar web site to introduce a wide range of new features that provide additional benefits to Flexcar members," Case said.

Car-Sharing Offers Substantial Benefits

Flexcar members can reserve the vehicle over the Internet or phone whenever they want for as little as $8 an hour. Unlike conventional car rentals, with car-sharing:

   -- The rate is all-inclusive, covering gas and insurance - and you only
      pay for the hours that you use the car

   -- Pick-up is at convenient locations in your neighborhood, not at a
      crowded airport or remote location.  Flexcar's vehicles have dedicated
      parking spots in prime, urban locations.

   -- Most of the Flexcar fleet is made up of low-emission hybrid cars

   -- There's no waiting at counters or lines to pick up a vehicle; Flexcar
      members just use their personal "Flexcard" to unlock their reserved
      car - and go!

"With gas prices soaring, Flexcar offers a better choice, especially for drivers who don't use a car that often, or who commute to work via mass transit. Flexcar members only pay for a car when they actually use it: they don't have to shell out for car payments, taxes, insurance, maintenance and parking -- let alone gas at $3 per gallon," Case noted.

In addition to serving individual consumers, Flexcar also serves a wide range of commercial and institutional customers, including Starbucks, Nike and major universities. A growing number of municipal governments are also turning to car-sharing. For example, the city of Portland, Oregon recently converted its fleet of sedans to Flexcar vehicles.

Revolution's acquisition of Flexcar will be part of its "Revolution Living" portfolio: Revolution's investments in companies that give consumers new choices to promote healthier, simpler lives and a healthier planet. Among the Revolution Living investments are a controlling interest in LIME, a multi-platform television and radio media network, that promises "healthy living with a twist" and "Miraval: Life in Balance," the nation's leading "mind, body and spirit" destination. In addition, Revolution Living recently announced a substantial investment in Gaiam, a lifestyle media company catering to people who value personal development, natural health, and inspirational entertainment.

Revolution, Revolution Living's parent company, builds innovative firms in sectors that are ready for dramatic change. Initial activity will be in the healthcare, balanced living, and resort/real estate sectors. The common theme linking Revolution's businesses is that they provide consumers with greater control, choice and convenience. Revolution partners with companies in the mid-and-early development stages, and manages these companies for long-term growth. The Chairman and CEO of the company is Steve Case, best known as the entrepreneur who made the Internet accessible to millions of people by co-founding AOL. Revolution's headquarters are in downtown Washington, D.C.

Headquartered in Seattle, Flexcar founded the U.S. car-sharing industry and now operates car-sharing programs for more than 30,000 members in six metropolitan areas, covering 37 cities in 5 states and the District of Columbia. With flexible pricing plans, members can reserve and drive any of these cars whenever and wherever they need to, without filling out complicated paperwork, paying for insurance, gas or repairs. Flexcar Business Memberships enable companies to augment or replace their fleet with Flexcar vehicles. Flexcar's fleet includes sedans, gas-electric hybrids, and specialty vehicles including pickups, AWD, minivans and convertibles.