Automotive Lease Guide (ALG) Announces ALG Depreciation Ratings for Consumers

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SANTA BARBARA, Calif., Feb. 12, 2004 -- Automotive Lease Guide (ALG), the industry benchmark for Residual Value forecasting, today announced the release of the "ALG(TM) Depreciation Ratings." The 1 through 5 star ALG ratings will provide consumers with an accurate and convenient method to determine the amount of depreciation a vehicle will experience over the lifetime of ownership. ALG will launch the Depreciation Ratings on Edmunds.com later this month.

"The ALG Depreciation Ratings will enable consumers to easily compare vehicles based upon anticipated depreciation that considers current market conditions and prices, including incentives," said John Blair, ALG's Chief Executive Officer.

ALG(TM) Depreciation Ratings are distinguished from ALG's standard industry residual values in that they utilize the actual transaction price that consumers pay for a vehicle as opposed to the Manufacturer Suggested Retail Price (MSRP) as the starting point. In addition, the 5-star system is designed to be consumer-friendly and to provide a range of depreciation. ALG standard industry residual values will continue to be based upon MSRP as required by the automotive finance industry.

"The Depreciation ratings are a natural extension of ALG's residual forecasting expertise. Retained value has become an important purchase decision in this era of incentives, and these ratings will be extremely useful for automotive purchasers," adds Blair.

The need for ALG(TM) Depreciation Ratings has been highlighted by the recent trend of aggressive automotive incentives which create a large gap between the MSRP and the actual transaction price of a vehicle. Information currently available to consumers presents a challenge to compare actual depreciation costs between different vehicles as the new car transaction prices will fluctuate greatly between models. The ALG(TM) Depreciation Ratings will incorporate ALG econometrics and Edmunds.com's "True Market Value(R)" as well as other market factors.

Based in Santa Barbara, California, Automotive Lease Guide is a privately held company that has been forecasting automotive residual values for over 35 years in both the U.S. and Canadian markets.

Please visit us at www.alg.com to learn more about ALG(TM) Depreciation Ratings, or any of ALG's other products and services. For further information, please contact Matt Walker, 805-563-0777 x116, or email: mwalker@alg.com.