Autobytel Retains Merrill Lynch to Evaluate Strategic Alternatives

IRVINE, Calif.--Oct. 24, 2005--Autobytel Inc. today announced that it retained the services of Merrill Lynch & Co. to assist the company in exploring strategic alternatives, which may include potential acquisitions of, or mergers with, complementary businesses, as well as a potential sale of the company.

"Autobytel is a pioneer in Internet automotive marketing. We believe that, in order to continue to innovate in this competitive and constantly evolving industry, we need to achieve greater scale," said Autobytel's President and Chief Executive Officer, Rick Post. "Accordingly, we have decided to explore strategic alternatives with the goal of maximizing shareholder value and providing best of breed services for our customers."

There can be no assurance that a transaction with a target business or potential buyer will occur. As a matter of policy, we will not comment upon any proposals received from or made to, or the course of any discussions with, any prospective counterparty nor will we comment upon any rumors relating to any of the foregoing.