United's New Leader Ader

20 March 2008

ACCESS INTERNATIONAL: United is already the world's biggest equipment rental company, so where do you see further growth coming from?

MICHAEL J KNEELAND: From an operational standpoint, we have numerous avenues for growth. The North American marketplace is still under–penetrated when it comes to equipment rental; industry sources estimate less than 40% penetration in the construction sector. Some of the most exciting opportunities exist within the government sector and industry. We announced in May that United Rentals has earned GSA status, which allows us to do business with branches of the US government.

Private manufacturing and industry have been even more prone to owning their own equipment. This is partly a habit, and partly due to labor agreements that constrain certain types of change. We have seen many situations where a change of ownership triggers a paradigm shift. The sector presents some challenges, but there is still ample opportunityus to pursue this business.

Everyone in our company understands that o is growth. Truck drivers have as much information a territory as sales reps or branch managers. are out there every day on jobsites where the trends where competitors are, where opportunities are help grow the company.

AI:Right now, your fleet mix is about 40% aerials. Do you intend to keep that percent intact a make future fleet investments?

MJK: We try not to make assumptions about fu mix until the capital investment period – that's demand is analysed. The mix really is determin needs of our customers. What I can tell you is that we are very comfortable with access equipment acounting for about 40% of our fleet at this time. Aerial was on of the top performing regions in our company in 2006 This looks like it will be another strong year. It's a business where scale matters; we are often asked to provide 50 or more lifts to large projects that require months or even years of construction.

AI:What future opportunities do you see fo United Rentals? Will you look at expanding into rental markets overseas?

MJK: We have always been open to attractive growth opportunities beyond our current markets, although we are not actively pursuing them at this time. As I mentioned earlie there is plenty of growth to be found in o own backyard. United Rentals has had a aggressive and highly successful cold sta program in place since 2005. We established more than 70 new branches in the last two years and plan another 30 to 35 openings by December.

I: How is the operating environment in N. America? MJK: Every indication is that United Rentals and the customers we serve will be operating in a positive construction environment for some time. We constantly take the temperature of market conditions in our regions, and we're very comfortable with what we see at this point. We have reasonable visibility through 2007 andinto 2008, with a number of large project commitments in place.

AI:So construction spending is still strong?

MJK: Our primary market in the US and Canada is private non–residential construction. This market spent 15,6% more in the first quarter compared with first quarter 2006. Our expectation is that spending will continue to increase this year, and in fact through 2008, although we do agree with industry analysts who feel that the growth rate will likely moderate. al construction, we have for equipment come from healthcare sectors. These ve market demand last year ction, but also equipment urbishing and maintenance. the other hand, has been he States. Homebuilding is ut we do see the impact in rnia where we have a high serve those contractors.

AI: plans to increase rental n this year, beyond the ed that decision?

MJK: 5 million (€

(200 million) of t 30% of our rental capex bsorbed into our branches egan to see time utilisation ng April time utilisation was wo percentage points year

confidence in the current ironment and our visibility e decided in May to increase al by another $50 million this year. When we improve on on an expanded fleet, as oing now, it indicates that strong, underlying demand equipment. Our focus, as s on our customers and our meet their needs.

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