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Cobalt to Acquire the DealerNet Service From The Reynolds & Reynolds Company

1 December 1997

Cobalt to Acquire the DealerNet Service From The Reynolds & Reynolds Company

             Cobalt Will Manage Over 3,500 Auto Dealer Web Sites

    SEATTLE, Dec. 1 -- The Cobalt Group, Inc., the country's
largest provider of Internet marketing systems for auto dealers, today
announced it will acquire the DealerNet(R) Service, the industry's first
on-line advertising and information service connecting automotive retailers
directly with consumers through a "Virtual Showroom," from The Reynolds &
Reynolds Company .
    "DealerNet was the first company to bring the power of the Internet to
work for auto dealers, and we are extremely pleased to combine DealerNet's
strong reputation and unique services with Cobalt's sophisticated Internet
marketing tools for auto dealers," said Geoffrey Barker, Co-CEO of Cobalt.
"The integration of DealerNet's and Cobalt's strengths will give our clients
the best of both worlds -- the ability to have highly sophisticated
interactive Web sites and a high-volume flow of prospective car buyers to
their sites," said Barker.
    "Cobalt has a strong commitment to customer service and we feel confident
that they will continue DealerNet's precedent of helping dealers get the
maximum value from their Web site investment.  They are focused on providing
technologies that allow dealers to maintain effective on-line marketing
programs, and we foresee a smooth transition for DealerNet subscribers," said
Robert Nevin, president, Reynolds Automotive Division.
    Reynolds and Reynolds, headquartered in Dayton, Ohio, is a leading
provider of integrated information management systems and related value-added
services to automotive, healthcare and general business markets.  The Company
reported revenues of $1.38 billion for the fiscal year ended Sept. 30, 1997.
    Cobalt's comprehensive Internet marketing solution gives auto dealers
unprecedented control over their on-line marketing programs, and has been
endorsed by seven auto manufacturers.  Cobalt is also an authorized dealer
service provider for Microsoft's CarPoint Interactive Classifieds service.
Following the acquisition of DealerNet, Cobalt will manage over 3,500 auto
dealer Web sites.

SOURCE  The Cobalt Group, Inc.