ANNOUNCES STRATEGIC REALIGNMENTS

PARSIPPANY, N.J., Oct. 6 /PRNewswire-FirstCall/ -- Wyndham Worldwide (NYSE: WYN) today announced it expects third quarter 2008 adjusted earnings per share of $0.80 - $0.82, consistent with third quarter earnings per share guidance, or expected GAAP earnings per share of $0.78 - $0.80, including charges related to the following strategic realignment initiatives:

• Wyndham Hotel Group, with nearly 7,000 hotels under 12 brand names, executed a realignment of its operations during the third quarter of 2008 to enhance service to its franchised and managed hotel customers and to consolidate its revenue generation activities.
• Group RCI, the global vacation rental and exchange business representing over 67,000 locations, began a restructuring in the third quarter of 2008 that will continue into the first quarter of 2009. The strategic realignment streamlines exchange operations across its international businesses by reducing management layers to improve regional autonomy and accountability. A portion of the restructuring savings will be reinvested in the business to accelerate and promote RCI's new web-based exchange platform, which will improve overall member experience and satisfaction while reducing operating costs.
• Wyndham Vacation Ownership, with approximately 145 vacation ownership resorts serving over 800,000 owners, will refocus its sales and marketing efforts on consumers with higher credit quality, and consequently, will decrease the level of timeshare development and enhance the cash flow from the business unit. These initiatives will begin in the fourth quarter 2008.

These strategic realignments will result in expected pre-tax restructuring charges related primarily to employee-related costs of approximately $7 million in the third quarter 2008 (or $0.02 per share), $10 - 15 million in the fourth quarter of 2008, and $5 - 10 million in the first quarter of 2009. These amounts are preliminary estimates and subject to change. The Company expects to realize the benefits of the restructuring initiatives beginning in 2009 and anticipates recovering the full amount of the charge associated with the initiatives by the end of 2010.

'Wyndham Worldwide continues to deliver solid results even in this challenging economic environment because of the scale, structure and stability of our product mix and geographically diverse business platform. Our broad range of products and brands provides balance when any one economy, geography or segment is challenged.